Foreign Direct Investment in Nepal – What You Need to Know
Foreign Direct Investment (FDI) in Nepal refers to capital brought into the country by a foreign individual, company, or institution to establish a new business, acquire shares in an existing Nepali company, or enter into a joint venture. It’s one of the fastest ways foreign investors can gain a legal, operating presence in Nepal, but only when the process is handled correctly from day one.
The Legal Framework
FDI in Nepal is governed primarily by the Foreign Investment and Technology Transfer Act, 2019 (FITTA), along with its accompanying regulations and periodic notices published in the Nepal Gazette. FITTA sets out who can invest, which sectors are open, how much must be invested, and how approvals, compliance, and profit repatriation work. The Act has been amended several times since 2019 to make the process faster and more investor-friendly, including the introduction of a one-stop service mechanism at the Department of Industry.
Who Approves Foreign Direct Investment in Nepal?
Department of Industry (DOI)
Approves most foreign investment applications, generally for projects up to NPR 6 billion
Investment Board of Nepal (IBN)
Handles larger-scale investments above that threshold in infrastructure and energy projects
Nepal Rastra Bank (NRB)
Manages the foreign currency inflow, investment records, and repatriation process after FDI approval.
Automatic Approval Route
Priority sectors like energy, infrastructure, tourism, and IT may get faster FDI approval if eligible.
