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Foreign Direct Investment (FDI) Legal Help Desk Your Legal Guide
FDI Legal Help Desk & Lawyers Guide
At Lawin & Partners, our FDI Legal Help Desk is dedicated to guiding multinational corporations, private equity firms, and Non-Resident Nepalis (NRNs) through the complexities of the Nepali market entry. This guide serves as your comprehensive legal roadmap for investing in Nepal in 2026.
2026 COMPLIANCE READY
Legal Framework Governing FDI
FITTA, 2074 (2019)
The primary law governing FDI, recently amended in 2025 to ease equity transfers and repatriation.
Industrial Enterprises Act
Provides for the "One-Stop Service Center" and various fiscal incentives.
Companies Act, 2063
Governs the incorporation and internal management of foreign-invested companies.
Investment Vehicles
-
100% Foreign-Owned Subsidiary
Full control over operations and strategic management in permitted sectors.
-
Joint Venture (JV) Collaboration
Partnering with local entities to leverage domestic market knowledge and resources.
-
Technology Transfer Agreement (TTA)
Licensing intellectual property, patents, or technical expertise to Nepali firms.
NRN Privilege
Non-Resident Nepalis (NRNs) holding an identity card enjoy special status, often treated similarly to domestic investors in specific sectors, including relaxed minimum investment rules in certain areas.
Sectors & Thresholds
Negative List (Prohibited)
- Primary Agriculture (Poultry, dairy, etc.)
- Small and Cottage Industries
- Mass Media (Print, online news)
- Sensitive Services (Real estate brokerage, retail)
Minimum Investment
NPR 20 Million
(Approx. USD 150,000) per investor as of 2026.
* Exception: IT sector thresholds are waived to encourage digital innovation.
FDI Approval Procedure
PHASE 01
Initial Setup
Securing DOI/IBN Approval, executing Company Incorporation at OCR, and completing Tax Registration (PAN/VAT).
PHASE 02
Registration
Business registration at the local ward office, formal Industry Registration at DOI, and corporate bank account activation.
PHASE 03
Compliance
Formal investment recording at NRB and obtaining necessary non-blacklisting certificates for operational integrity.
Repatriation & Taxation (2026 Reforms)
Repatriation Rights
- Dividends & Net Profits
- Proceeds from share liquidation
- Royalties & Technical fees
- Interest on foreign loans
Pro-Investor Update: Bypassing prior-approval for dividends from NRB is now permitted through commercial banks in 2026.
Fiscal Incentives
25%
Standard CIT
5%
Dividend Tax
Special exemptions and holidays are available for export-oriented industries and the rapidly growing IT sector.
Navigating Nepal's Legal Landscape
Lawin & Partners acts as your local legal liaison, ensuring compliance with DOI, IBN, and NRB regulations.
Frequently Asked Questions
The minimum investment threshold is NPR 20 million (approx. USD 150,000) per foreign investor.
Yes, in most sectors, including IT, manufacturing, and energy, 100% foreign equity is permitted.
A foreign individual, firm, company, NRN, foreign government, or international agency.
Non-Resident Nepalis (NRNs) enjoy a special status and can invest as "Foreign Investors" but with simplified procedures in specific sectors.
Get in Touch with Our Legal Experts
Have a question or need legal assistance? Fill out our contact form and our team of experienced lawyers in Kathmandu, Nepal will get back to you promptly.
Please include your WhatsApp or Viber number in the phone section if you'd prefer a direct call from one of our legal professionals.
We are here to provide trusted legal support tailored to your needs.
Phone : +9779841933745, +9779841933745
REACH OUT TO US AT ANY TIME
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