Overview
FDI Approval in Nepal, at a glance.
FDI Approval overviewForeign direct investment in Nepal is regulated by the Foreign Investment and Technology Transfer Act (FITTA) 2019 and the Industrial Enterprises Act 2020. The Department of Industry is the approval agency for FDI below NPR 6 billion; investments of NPR 6 billion or more, national pride projects and PPP projects are routed through the Investment Board of Nepal (IBN). A foreign investor generally must invest at least NPR 20 million (about USD 150,000) — with no minimum for IT/ICT investments made through the automatic route — and there is no upper cap.
For investments up to NPR 500 million in eligible sectors (energy, agriculture & forest products, infrastructure, tourism, IT/ICT, services, manufacturing), approval can be obtained automatically: you submit online at the DOI's FDI platform and receive the approval certificate without a separate discretionary review. Standard approvals follow a documentation checklist — project report, joint venture agreement where relevant, corporate/passport documents, a financial credibility certificate from the investor's home-country bank, and an authority letter — with no approval fee and a refundable NPR 20,000 deposit. After approval the investor incorporates the company, registers for tax and industry, brings the funds through the banking channel, notifies and records the investment at Nepal Rastra Bank (as FITTA 2019 requires), and can later repatriate dividends, royalties and sale proceeds through the foreign-exchange facility. Recent amendments to the NRB's bylaws allow eligible investors to receive foreign currency inflows and repatriate directly through authorized banks without prior NRB approval.
- Governing law
- FITTA 2075 (2019)
- Authority
- DoI (FITTA Branch), OCR, NRB
- Minimum
- NPR 50 million per investor
- Portal
- DoI Automated Route / IMIS
Why this is done from Nepal
Because this is where the system actually runs.
Why this service is delivered from NepalAGENCY
Approval runs through Kathmandu, end to end
FITTA approval is granted by the Department of Industry (or the Investment Board for NPR 6 billion+ projects), incorporation at the Office of the Company Registrar, recording at Nepal Rastra Bank — every counter is in Nepal, and each has its own working practice.
THRESHOLDS
Thresholds and sectors shift with local rules
Minimum capital, the negative list, eligible sectors and the automatic-approval route are all defined by Nepali law and revised by circular. Advice here means reading the current rules, not a cached summary.
BANKING
Capital must move through Nepali banking channels
Inflows, NRB notification and eventual repatriation of dividends and sale proceeds all run through Nepal's foreign-exchange framework — the part of an investment that off-shore advisers least often handle.
Process
How it works, step by step.
ProcessForeign direct investment in Nepal is regulated by the Foreign Investment and Technology Transfer Act (FITTA) 2019 and the Industrial Enterprises Act 2020. The Department of Industry is the approval agency for FDI below NPR 6 billion; investments of NPR 6 billion or more, national pride projects and PPP projects are routed through the Investment Board of Nepal (IBN). A foreign investor generally must invest at least NPR 20 million (about USD 150,000) — with no minimum for IT/ICT investments made through the automatic route — and there is no upper cap.
Check the negative list
Foreign investment is open in most sectors but restricted in a negative list (primary agriculture, real estate except construction, retail, internal courier, money exchange, some consultancy). Confirm your sector is open before anything else.
Apply for FDI approval
The Foreign Investment and Technology Transfer Act, 2075 (2019) (FITTA) governs approval, administered by the Department of Industry — applications now run through the DoI's Automated Route Portal / IMIS. The application covers investor identity, shareholding, sector, capital and technology transfer where any.
Company incorporation
With approval in hand, incorporate (or convert) the company at the Office of the Company Registrar, then register with the Inland Revenue Department (PAN/VAT), social security and local ward where required.
Bring in the capital
Foreign currency investment must come through banking channels with the inflow advised to Nepal Rastra Bank. Industry registration and operational approvals follow; capital and dividends can be repatriated under FITTA with the paperwork in order.
- Minimum foreign investment: NPR 50 million per investor per industry (FITTA s. 25) — only 25% must be brought in the first year
- FITTA protects against nationalisation and guarantees repatriation of capital, sale proceeds, dividends and loan repayments
- Technology transfer, royalty and franchise arrangements are approved in the same framework
For investments up to NPR 500 million in eligible sectors (energy, agriculture & forest products, infrastructure, tourism, IT/ICT, services, manufacturing), approval can be obtained automatically: you submit online at the DOI's FDI platform and receive the approval certificate without a separate discretionary review. Standard approvals follow a documentation checklist — project report, joint venture agreement where relevant, corporate/passport documents, a financial credibility certificate from the investor's home-country bank, and an authority letter — with no approval fee and a refundable NPR 20,000 deposit. After approval the investor incorporates the company, registers for tax and industry, brings the funds through the banking channel, notifies and records the investment at Nepal Rastra Bank (as FITTA 2019 requires), and can later repatriate dividends, royalties and sale proceeds through the foreign-exchange facility. Recent amendments to the NRB's bylaws allow eligible investors to receive foreign currency inflows and repatriate directly through authorized banks without prior NRB approval.
Documents & fees
What it takes, and what it costs.
Documents and feesWhat you need
| Document | Notes |
|---|---|
| Application form | DoI FDI application via the Automated Route Portal |
| Investor documents | Passport / company registration of the foreign investor |
| Board resolution / mandate | Authorising the investment and signatory |
| Memorandum and Articles | Draft MoA/AoA for the Nepali company |
| Project/business plan | Sector, capital structure, employment and technology detail |
| Power of Attorney | For the local representative or agent |
Typical documents for FDI approval (DoI)
Fees
| Item | Amount (NPR) |
|---|---|
| FDI application fee | ≈2,000–10,000 by paid-up capital |
| Company registration | ≈1,000–10,000 by capital (OCR) |
| Industry registration | By industry size and category (DoI) |
Government charges (indicative — confirm current rates)
FDI thresholds, fees and procedures are revised frequently. Figures above are indicative — confirm current requirements with the Department of Industry before applying.
Legal references
Where the rules come from.
Legal referencesGoverning law & official references
- Foreign Investment and Technology Transfer Act, 2075 (2019) — Nepal Law Commission
- Department of Industry — Foreign Investment & Technology Transfer Branch — Government of Nepal
FAQ
FDI Approval in Nepal — common questions.
Frequently asked questionsWhat is the minimum investment for FDI in Nepal?
FITTA sets the floor for foreign direct investment; the Department of Industry administers approval for investments below NPR 6 billion, with larger projects routed through the Investment Board of Nepal. Some sectors and routes carry specific thresholds that are revised by circular — confirm the current figure for your sector before applying.
Which sectors are closed to foreign investment in Nepal?
A negative list restricts foreign investment in certain sectors — among them primary agriculture, real estate (other than construction), retail, internal courier, money exchange and some consultancy services. The list is defined in FITTA 2075 (2019) and should be checked before any application.
How long does FDI approval take in Nepal?
Timing depends on sector, capital structure and documentation. Applications run through the Department of Industry's automated portal (IMIS); once approval is issued, company incorporation, tax and industry registration and NRB recording follow as separate steps, each with its own processing time.
Can profits be repatriated from Nepal?
Yes. FITTA 2019 protects against nationalisation and guarantees repatriation of capital, sale proceeds, dividends and loan repayments — provided the investment came in through banking channels and the recording formalities with Nepal Rastra Bank were completed.
Independent by design. IP Watch Nepal is independently operated and is not affiliated with, nor endorsed by, the Department of Industry or WIPO.