Most Common Foreign Direct Investment Establishment Practiced in Nepal

1. Registration of Branch Office in Nepal

Foreign Company or individual can conduct business in Nepal by registering branch office in Nepal. 

2.  Registration of Liaison Office in Nepal

No government approvals required for liaison office establishment, not allowed to generate income or marketing activities. It’s a contact point to communicate and coordinate with local parties. 

3. Trading for Foreign Companies in Nepal

No trading business is permitted in Nepal so no subsidiary company can be established. Thus, foreign investors can appoint local agent to distribute its products in Nepal through agency distributorship agreements.

4. Foreign Investment Business through Franchise Agreement

Foreign business has to enter into franchise agreement in Nepal. There is no permissibility restrictions by registration of trademark in Department of Industries, execute franchise agreement with foreign company and local company, franchise agreement approval in DOI. 

Foreign Direct Investment Procedure in Nepal

Step 1: Obtaining the Foreign Investment Approval from DOI or IBN

Step 2: Registration of company at Office of the Company   Register

Step 3: Tax Registration at Inland Revenue Office

Step 4: Business Registration at Local Ward  Office

Step 5: Obtaining the recommendation letter from the Local Ward Office for Industry Registration

Step 6: Registration of industry before the Department of Industry.

Step 7: Obtaining the "non-black certificate" from the Credit Information Bureau

Step 8: Opening the local bank account of the company

Step 9: Recording the investment amount before NRB

After Registration and approval of Foreign Direct Investment in Nepal; Lawin and Partners Law Firm in Nepal additionally assists on following Compliances to make easy operation of your business in Nepal:

Compliances, Related other Approvals and Due Diligence 

Approval from Nepal Rastra Bank

For easy fund injection from abroad, and repartition of profit earned from business, Lawin and Partners law firm in Nepal handles all the process of ministries and central bank approvals for operation of your foreign investors business in Nepal. Lawin and Partners, a team of experienced corporate lawyers helps you in documentation, registration, approvals from concerned authorities of Nepal government. 

Tax Liabilities of Foreign Direct Investment Companies

1. Corporate Tax rate is 25%
2. manufacturing and hydropower tax-20%
3. Agriculture, forestry mining -20% tax liabilities
4. Banking and Finance institutions-30% tax liabilities
5. Dividends -5% tax liability

Business Visa for Foreign Investors in Nepal

Once Foreign Investment is registered in Nepal, Investors gets business visa in Nepal. Obtaining business visa by investors in FDI in Nepal takes time of month and Lawin and Partners as top FDI law firm in Nepal assist you with all legal process to get business visa in Nepal. 

Intellectual Property Protection of Your Business 

Advisory services on securing and enforcing intellectual property rights within Nepal, ensuring legal protection under copy right, and patent laws. 

Repatriation of Foreign Investment from Nepal

Foreign investors are permitted to repatriate 

1.  Earnings and Profit through dividend, sales, investment in shares

2. Compensation and Indemnity

3. Sale Proceeds form Share Transfer

4.  Return of capital at the time of Liquidation

5. Royalty, technology transfer fee, license fee

6. Lease rent

Professional Legal Advice from Lawin and Partners (Law Firm) 

Foreign Direct Investment in Nepal, by specialized Corporate Lawyers in Nepal. 

We welcome inquiries regarding Registration of foreign Direct Investment in Nepal. 

Major challenges are there for foreign investors and procedural complexities therefore expert guidance on Business registration in Nepal is mandatory. Lawin and Partners (Law Firm in Nepal) have advice several international foreign companies and business and have been legal partner in each step during operation of business.

Our experienced corporate lawyers in our Law firm assist strongly in providing advices for structuring FDI, Getting Documentations and approvals, Compliances and Due Diligence.