Inbound investment work is sequencing work. Approval, remittance, recording and share issue have to happen in the right order, through the right channel, with matching paperwork at each stage.
What this area covers
- Foreign investment approval at the Department of Industry or the Investment Board, depending on scale
- Sector eligibility review before any commitment is made
- Inward remittance recording and share issue against foreign capital
- Nepal Rastra Bank approvals for investment entry and for repatriation of dividend, capital and proceeds of sale
- Joint venture agreements between Nepali and foreign partners
- Technology transfer, royalty and licensing agreements and their approval
- Share transfer from a Nepali shareholder to a foreign shareholder and the reverse
- Branch and liaison office establishment for foreign companies
Questions we are asked in this area
In many sectors, yes. Nepal maintains a negative list of activities closed to foreign investment, and some sectors carry conditions or caps. The first thing we do on any inbound matter is confirm the sector position, because everything downstream depends on it.
Nepal applies a minimum threshold for foreign investment, and it has been revised more than once in recent years, including relief for certain sectors. We confirm the figure that applies on the date of your application rather than quoting one that may have moved.
Approval comes first, then the funds are remitted through the banking channel and recorded with Nepal Rastra Bank, then shares are issued against the recorded amount. Sending money before approval creates a problem that is difficult to unwind, and it is the single most common mistake we are asked to fix.
Yes, repatriation is permitted for approved and properly recorded foreign investment, through the Nepal Rastra Bank process, once tax obligations are settled. The quality of the entry paperwork determines how difficult the exit is. Investments recorded correctly at the start repatriate without drama.
It varies with the sector, the completeness of the corporate documents from the investor side and the current load at each office. We give a realistic range at the outset and tell you which step is the likely bottleneck for your particular case.