Foreign Direct Investment
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Foreign Direct Investment
Foreign Direct Investment
What are foreign investments?
Foreign investment means investments made by foreign investors in any industry in the form of:
- Investment in share (equity)
- Reinvestment of the earnings derived from investment in shares
- Investment made in the form of loan or loan facilities
Why invest in Nepal?
- Foreign Investors are allowed 100 percent ownership of company in most sectors (except the following sensitive sectors)
- Cottage Industries
- Services
- Arms and ammunition industries
- Gunpowder and explosives
- Industries related to radio-active materials
- Real estate
- Film industries
- Security Printing
- Bank notes and coins
- Retail
- Travel Agency
- Trekking Agency
- Water Rafting
- Pony Trekking
- Horse Riding
- Cigarette, Bidi and Alcohol (excluding more than 90% exportable)
- Internal Courier Services
- Atomic Energy
- Tourist Lodging
- Poultry
- Fisheries
- Bee Keeping
- Consultancy Services such as Management, Accounting, Engineering, Legal Services
- Repatriation of principle, dividend and interest is permitted
- Industrial Enterprises Act 1992 guarantees against nationalization of privately owned industries
- Foreign investment in protected areas is permitted in form of Technology Transfer
- Deregulation of market and prices ensures free and fair competition
- Various bilateral investment protection and double tax avoidance arrangements in place:
- Bilateral Investment Promotion and Protection Agreement (BIPPA) signed with Finland, India, Germany, Mauritius, United Kingdom, and France
- Double Taxation Avoidance Agreement signed with Austria, China, India, Korea, Mauritius, Norway, Pakistan, Qatar, Sri Lanka and Thailand
- Member of Multilateral Investment Guarantee Agreement (MIGA) of the World Bank Group
- Member of World Trade Organization
- Duty free, quota free market access to European Union under the Everything But Arms (EBA) arrangements
- Duty free, quota free access to the United States of America’s market for products under 66 HS Codes under Nepal Trade Preferences Act
- Duty free, quota free access to majority of products to India, South Asian countries and China
- Geographical proximity to India and China
- Low cost of labor
Application for FDI
How much do you want to invest?
- Greater than or equal to NRS 10 billion
- If yes, submit an application at Investment Board Nepal (IBN) and get approved by the IBN
- Greater than or equal to NRS 2 billion
- If yes, submit an application at Department of Industry and get approved by Industrial Promotion Board
- Less than NRS 2 billion
If yes, submit an application at the Department of Industry and get approved by the Director General of Department of Industry