Dhruba Bar Singh Thapa & Associates

Foreign-Direct-Investent
Overview

Foreign Direct Investment

Nepal offers immense opportunities for foreign investors looking to establish or expand their businesses in a growing economy. The government of Nepal encourages foreign investment by providing various incentives, but navigating the regulatory framework requires expert legal guidance. At Dhruba Bar Singh Thapa and Associates, we provide comprehensive legal assistance for foreign direct investment (FDI) in Nepal, ensuring a smooth and legally compliant entry into the market. 

What is FDI in Nepal? 

Foreign Direct Investment (FDI) involves investing in Nepal’s economy by establishing a new business, acquiring an existing business, or partnering in joint ventures. This requires compliance with the Foreign Investment and Technology Transfer Act (FITTA) and other applicable laws, such as tax regulations and sector-specific guidelines. 

Business Incorporation in Nepal 

Incorporating a business in Nepal involves adhering to the Companies Act and registering with the appropriate government authorities, such as: 

  • Office of the Company Registrar 
  • Department of Industries 
  • Department of Cottage and Small Industries 

Whether you plan to establish a public company, private company, or foreign entity, we guide you through the entire incorporation process, ensuring compliance with all legal requirements. 

Working Process

Bold Approaches Expert Counsel Results That Matter

Received Case

we promptly review new cases, providing expert legal guidance tailored to your specific needs.

Report Analysis

Thorough examination and interpretation of legal reports and documents to provide clear insights

Collect Evidence

Systematic gathering of evidence to build a strong case, ensuring all relevant information is obtained

Law Success

Achieving favorable outcomes, ensuring that your legal matters are resolved effectively.

Our Expertise

FDI Approval and Registration

  • Facilitating approval processes with the Department of Industry (DOI) and Investment Board of Nepal (IBN). 
  • Advising on FDI thresholds, repatriation policies, and restrictions under Nepalese law. 

Business Setup and Incorporation

  • Establishing companies, including private entities, public entities, and joint ventures. 
  • Drafting Memorandum of Association (MOA) and Articles of Association (AOA). 
  • Registering branch offices or liaison offices for foreign businesses. 

Regulatory Compliance

  • Assisting with compliance under the Foreign Exchange Regulation Act, Anti-Money Laundering Act, and other statutory requirements. 
  • Advising on tax compliance, VAT registration, and sector-specific permits. 

Investment Structuring and Planning

  • Structuring investments to maximize benefits under Nepalese law. 
  • Assisting with profit repatriation, tax exemptions, and bilateral investment treaties. 

Joint Ventures and Strategic Alliances

  • Advising on joint venture partnerships between foreign and local businesses. 
  • Drafting and negotiating agreements for seamless collaboration. 

Post-Investment Support

  • Assistance with operational compliance, annual filings, and regulatory updates. 
  • Legal advice on dispute resolution, mergers, and acquisitions. 

Contact Us

Entering Nepal’s market as a foreign investor can be complex, but with Dhruba Bar Singh Thapa & Associates, you’ll have expert legal support at every step. Let us help you unlock Nepal’s investment potential and grow your business with confidence. 

Contact us today to learn more about our FDI services or to schedule a consultation. 

Why choose Us?

We Fight For Justice Not Win Case Anyhow

icon

Expert Guidance

Extensive knowledge of Nepal’s FDI policies and investment laws. 

icon

Global Perspective:

Trusted by foreign investors and multinational corporations worldwide. 

icon

Comprehensive Services

From investment approval to business operations, we handle everything. 

icon

Affordable Solutions

Tailored services that are both efficient and cost-effective.

other services

We Can Help You In The Following Practice Areas

commercial-law
icon

Commercial law

We assists clients with compliance, dispute resolution, and transactional support, helping them navigate the complexities of commercial transactions and safeguard their interests.

icon

Real Estate

We assist clients in the real estate sector with compliance, litigation ensuring adherence to regulations, protection of property rights, and effective resolution of legal challenges.

Taxation
icon

Taxation

We provides services such as tax planning, audit support, and representation to help clients minimize liabilities and optimize their tax strategies.

Frequently Asked Questions (FAQs) on Foreign Direct Investment (FDI) in Nepal

What is the minimum capital requirement for FDI in Nepal?

The minimum investment required for Foreign Direct Investment in Nepal is NPR 50 million (approximately USD 375,000). 

  • Obtain approval from the Department of Industry (DOI) or Investment Board of Nepal (IBN). 
  • Register the company with the Office of the Company Registrar. 
  • Complete tax and business registration. 
  • Obtain approval from Nepal Rastra Bank for fund injection. 

Yes, Nepal restricts FDI in certain industries, including defense, arms production, and cultural heritage businesses. A detailed negative list is provided by the government. 

Yes, foreign investors can repatriate profits and funds after fulfilling tax obligations and obtaining necessary approvals from Nepal Rastra Bank. 

The entire process, from obtaining approvals to operational compliance, typically takes 3 to 6 months, depending on the complexity of the investment. 

We provide legal services for securing approvals, company incorporation, compliance management, intellectual property protection, and ongoing operational support for foreign investors. 

Prominent sectors include hydropower, tourism, agriculture, manufacturing, IT, and hospitality.