Foreign Investment in Nepal

Nepal has adopted the liberal foreign investment policy.  Here is friendly environment to attract foreign investment in Nepal. Many foreigner are invested in Profitable areas. The top potential areas like hydropower, industrial manufacturing, services, tourism, construction, agriculture, minerals and energy, medical tourism are main areas of investment.

The foreign investments in Nepal are regulated and administered by Foreign Investment and Technology Transfer Act (FITTA) 1992 and Industrial Enterprises Act (IEA) 2016.

Area not allowed to invest:

  1. Cottage Industries
  2. Personal Service businesses (Business such as hair, cutting, beauty parlour, tailoring, driving training, etc.)
  3. Arms and Ammunition Industries
  4. Gunpowder and Explosives
  5. Industries related to Radio-Active Materials
  6. Real Estate Business (excluding construction industries)
  7. Film Industries (National Languages and other recognized languages of Nation)
  8. Security Printing
  9. Bank notes and Coins
  10. Retail Business (excluding international chain retail business with its business more than two countries)
  11. Bidi (excluding more than 90% exportable)
  12. Internal Courier Service
  13. Atomic Energy
  14. Poultry
  15. Fisheries
  16. Bee Keeping
  17. Consultancy Services such as Management, Accounting, Engineering, Legal Services (Maximum 51% foreign investment is allowed)
  1. Processing of Food Grains on Rent
  2. Local Catering Services
  3. Rural Tourism

The basic information that needed are:

Docs from foreign shareholders/company

  1. Citizenship/Passport copy of the shareholder– Photocopy/ into notarized form
  2. Financial credibility certificate from the bank in the specified format – Original
  3. Bio data of the shareholder – Original
  4. PP size photos of shareholder – 4 Nos.
  5. Project scheme (if not with you, made by lawyer)
  6. Joint Venture Agreement (JVA), in case of more than one investor(law firm compulsory)
  7. Copy of passport of foreign party or Certificate of incorporation, including Memorandum of Association and Articles of Association, if the party is a company
  8. Authority letter from the concerned companies or individuals to carry out any necessary work on their behalf, if applicable

Other Information required

  1. Proposed name of the proposed company.
  2. Address along with ward no of the proposed company
  3. Objective in brief of the proposed company
  4. Authorized, issued and paid up capital of the company
  5. Detail of the proposed investment amount in fixed assets & working capital
  6. Detail of the fixed assets for the proposed business
  7. Detail of the other material for the proposed business(if not with you, made by lawyer)
  8. Business plan in regard to the proposed business (if not with you, made by lawyer)
  9. Detail of the shareholders along with proposed investment
  10. List of machines to make business proposal, electricity KV and working days and number of human resources
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