🌐Practice Area 01

Comprehensive FDI Advisory for Nepal

Specialised guidance for foreign investors entering Nepal — from sector eligibility and FITTA compliance to joint ventures and structuring. We walk you through approvals with the Department of Industry and Investment Board Nepal so your entry is transparent, compliant, and ready for the market.

Nepal has become an increasingly attractive destination for foreign investors, particularly following the enactment of the Foreign Investment and Technology Transfer Act (FITTA) 2019. The Act has streamlined FDI procedures and opened new sectors to foreign participation, creating significant opportunities for international businesses.

At Pluto Associates, our FDI practice provides comprehensive, end-to-end advisory services that guide investors through every stage of the investment lifecycle. From initial feasibility assessment and sector eligibility analysis to Department of Industry (DOI) approval, company registration with the Office of Company Registrar (OCR), PAN/VAT registration, and sector-specific licensing — we handle the entire regulatory process.

“The minimum foreign investment threshold in Nepal is NPR 20 million (approximately USD 150,000). Our team helps investors structure their investment optimally.”

Our FDI Services

✓FDI feasibility assessment and sector-specific eligibility analysis
✓Department of Industry (DOI) approval and registration
✓Company incorporation with the Office of Company Registrar (OCR)
✓Investment structuring — equity, debt, JV, or branch office options
✓FITTA compliance and technology transfer agreement drafting
✓Repatriation of profits, dividends, and capital advisory
✓Post-investment compliance monitoring and annual filings
✓Exit strategy planning and regulatory wind-down procedures

Sectors We Cover

We advise foreign investors across diverse sectors including energy and hydropower, manufacturing, IT and software development, tourism and hospitality, agriculture and food processing, healthcare and pharmaceuticals, education, and financial services.

Why Choose Pluto Associates?

Our combination of deep regulatory knowledge and a practical, business-oriented approach sets us apart. Senior Partner Sudeep Nepal brings 30+ years of experience working with foreign investors, while our associates provide dedicated, day-to-day support.

Related Publications

Articles and guides related to this practice area from our team.

fdi

How Foreign Investors Can Set Up a Company in Nepal in 2025

July 18, 2026

View All Publications →

FAQs — Foreign Direct Investment (FDI)

Common questions our clients ask about this practice area.

Can Nepalis living abroad (NRNs) invest or buy property in Nepal?+

Yes. Non-Resident Nepalis (NRNs) and foreign nationals, subject to the rules, can in principle invest in Nepal and take part in the growth of the economy, provided they follow the rules on property and investment. Those rules include the types of assets a non-resident may hold and the sectors open to them, and the answer can depend on NRN status and on the sector, so the current position should always be confirmed rather than assumed. The same rules also affect how income and returns are brought home to the investor. With the structure and documentation handled properly, the investment can be lawful and its returns managed cleanly. We help NRNs and foreign investors plan the structure and complete the required paperwork.

Can a non-resident Nepali (NRN) invest in Nepal?+

Yes. Non-resident Nepalis can invest in Nepal under the foreign investment framework, and NRNs benefit from the same investment rules as other foreign investors, with some concessions. The investment can be in equity of a new or existing company or in a listed company, subject to sector eligibility and the minimum investment thresholds under FITTA. NRN investment follows the foreign investment approval route, and depending on the sector, may require local partners. We help NRN investors confirm eligibility, choose the right structure and complete both investment approval and company registration.

How can I set up a business in Nepal from abroad?+

Setting up a business in Nepal from abroad is possible, but it requires coordinating company registration, PAN, and any foreign investment approval, and much of this needs in-country steps. A common approach is to structure the company, prepare all documents remotely, and authorise a local representative through a power of attorney to complete filings. Foreign investors also need to plan their capital remittance and banking carefully. We manage the entire process on your behalf — documentation, filings and approvals — so you can incorporate and open the business without unnecessary travel.

What is the minimum foreign investment amount in Nepal?+

The Companies Act and the foreign investment framework set a minimum foreign investment amount for equity participation, and it applies to most foreign investments under FITTA. The threshold is revised from time to time and can vary with the sector. A foreign investor also needs the investment to fall within an eligible sector. Because the exact figure and rules change, we confirm the current minimum before you commit, and structure the investment so the amount and structure satisfy both the FITTA requirement and company law.

Do foreign investors need a local partner in Nepal?+

Not always. Nepal allows wholly foreign-owned companies in many sectors, so a local partner is not required by law across the board. However, certain sectors are reserved for Nepali citizens or businesses, and in those sectors a foreign investor needs a Nepali partner or cannot invest at all. Beyond legal requirements, a local partner can bring market access and practical advantages. We assess your sector and objectives, confirm whether a partner is required or advisable, and structure the arrangement accordingly.

See all FAQs →

Corporate & Commercial Law

← Back to All Practice Areas

Need Legal Assistance?

Our experienced team is ready to help you with Comprehensive FDI Advisory for Nepal.

Schedule a Consultation →Call Us

Chat with us!

We reply within minutes