Foreign Investment in Nepal

March 3, 2023

Project size Approving Authority

Upto NPR 6 billion Department of Industries (DOI)

More than NPR 6 billion Investment Board of Nepal (IBN)

Starting a business in Nepal by establishing a new industry

Establishing industry lets follow the process

1. Project Identification and Initial Consultation at the Department of Industries (DOI)

2. Application for FDI approval at DOI with required documents

3. Check and approval of FDI by DOI

4. Issue Letter from DOI for FDI

5. Incorporation of a company at the Office of Company Registrar following the process and including required documents as required for registration

6. Registration at Inland Revenue Office for PAN number

7. Business Registration at Local Authority, Industry Registration at DOI

8. Opening of Bank Accounts from any financial institutions in Nepal.

9. Apply at the Foreign Exchange Facilitation Unit of the Central Bank of Nepal i.e. NRB for inwarding the foreign fund, get the certificate as necessity.

10. Environmental Assessment as required under related law of Nepal

11. Application for a business license from concerned regulating authorities depending on nature of business

Note:

1. Prior approval for foreign investment or approval of NRB will not be mandatory for Interested foreign investors to send/remit foreign currency into Nepal through the banking system for feasibility study /pre-operating expenses. Such amount, up to 3% of their paid-up capital may be considered /accounted as foreign investment later if expenses are certified by the auditor and are properly accounted for while doing endorsement of foreign investment in NRB.

2. Prior approval of NRB shall be required to bring foreign currency into Nepal for foreign investment where such foreign investment results in a change of share ownership.

3. If Investment is less than NPR 6 Billion then the application to the Department of Industry else submit the application to the Investment Board of Nepal.

Documents required for establishing a new industry with projects of more than NPR 6 billion

- Preliminary Feasibility Report (must include the following information)

• Project Design
• Estimated Cost of the Project
• Proposed Financial Resources
• Business/Operation Plan
• Preliminary EIA Report
• Proposed Revenue model
• Proposed Royalty / Fee to Government
• Joint Venture Agreement (JVA), in case of more than one investor- Citizenship certificate of local investor or Certificate of Incorporation, including Memorandum of Association and Articles of Association, Shareholders register, tax clearance certificate if the local investor is a company
• Notarized Copy of passport of foreign investor or Certificate of Incorporation, including Memorandum of Association and Articles of Association if the party is a company
• Bio-data / Company profile of the foreign party
• Financial Credibility Certificate (FCC) of the Foreign Investor provided by a home country bank or domiciled country bank
• Authority letter from the concerned companies or individuals to carry out any necessary work on their behalf
• If applicable- Other documents as demanded later based on the progress

Please email us at hello@rudolphservice.com for more information on our work or an overview of our Foreign Investment and Business Incorporation practice in Nepal.