Faqs

The key legislations regulating foreign investment in Nepal are

1. The Foreign Investment and Technology Transfer Act (FITTA) 1992 governs foreign investment
2. Industrial Enterprise Act, 2016 simplifies and clarifies the procedures for entry, operation and exit of industrial enterprises
3. Banks and Financial Institutions Act, 2017 (BAFIA) protects and promotes the rights and interests of depositors, provides quality and reliable banking and financial intermediary services through healthy competition
4. The Companies Act, 2006 amended in 2017 simplifies and makes the processes of establishing, managing and administering companies more convenient and transparent.
5. Investment Board Act (2011)

Pursuant to the notice of the Ministry of Industry, Commerce and Supplies dated 29 May 2019, a foreign investor is required to invest at least NPR 50 million (approx. USD 450,000).

Tourist Visa:visitors can come to Nepal and stay for 60 days with renewals allowed for up to 150 days in total in a calendar year.

Non-tourist visa:Foreigners having obtained permission from the Government of Nepal to work on either remuneration or volunteer basis in any firm/company/association/industry or enterprise within Nepal require this visa. This type of visa is issued for a period not exceeding one year at a time and its term may be extended as needed.
Foreigners who have obtained a recommendation from the Department of Industry/Investment Board to conduct a feasibility study for any industry or enterprise for a period not exceeding six months can also obtain a nontourist visa.

Non-tourist visa for expatriate staff:If the required skilled workforce is not available locally, an industry can employ foreign nationals by obtaining a work permit. This visa is granted for a duration of one year at a time upon the recommendation of the investment approving agency (Investment Board Nepal/Department of Industry) and Department of Labour, and can be extended for a period of 5 years on an annual renewal basis.

Business visa:A business visa can be granted on the recommendation of the concerned agency to the following foreigners (and his/her family):
i. A foreigner and/or his/her authorised representative who has obtained a licence to invest in any business or industrial enterprise within Nepal
ii. A foreigner who has obtained a a licence to make an investment to export from Nepal
iii. - A foreigner visiting Nepal from a country who exports goods manufactured in Nepal through purchase or places a purchase order for export

Residential visa:Any foreign investor who has made an investment equivalent to more than USD 100,000 at any one time and in convertible foreign currency can be granted a residential visa on the recommendation of the Department of Industry/Investment Board Nepal

Non-resident Nepali visa:If any foreigner of Nepali origin, residing in a foreign country, intends to reside in, or carry on trade or business in, or conduct study, teaching or research work in any subject, in Nepal, a non-resident Nepali visa may be granted to such a foreigner and his or her family members for a period not exceeding ten years at a time.

The following areas are restricted for foreign investment by FITTA 1992.

1.	Cottage industries (except industries using electricity of more than 5 KW)
2.	. Personal service businesses (businesses such as hair cutting, beauty parlours, tailoring, driver training etc.)
3.	Arms and ammunition industries
4.	Gunpowder and explosives
5.	Industries related to radio-active materials
6.	Real estate business (excluding construction industries)
7.	Film industries (national languages and other recognised languages of the country)
8.	Security printing
9.	Banknotes and coin
10.	Retail businesses (excluding international chain retail businesses with minimum investment of NPR 500 million, operating in at least two countries)
11.	Bidi (tobacco, excluding more than 90% exportable)
12.	Internal courier service
13.	Atomic energy
14.	Poultry
15.	Fisheries
16.	Beekeeping
17.	Consultancy services such as management, accounting, engineering, legal services (maximum 51% foreign investment is allowed)
18.	Beauty parlour
19.	Processing of food grains on rent
20.	Local catering services
21.	Rural Tourism

The negative list has been revised in the Foreign Investment Policy 2015 and proposed in FITTA amendment. However, as at the time of publication of this document, the changes have not been implemented.