Setting Up a Company in Nepal

A step-by-step guide for foreign investors routes, timelines, documents, and provisions, based on the Department of Industry's FDI Guideline 2025.

NPR 20M

Minimum FDI Threshold

No Limit

Maximum Investment Allowed

100%

Foreign Ownership Permitted

7 Days

FDI Approval Timeframe

Choose Your Route

Every FDI project in Nepal is approved through one of two routes, depending on the size and sector of the investment.

No prior DOI approval apply online and get your certificate automatically.

  • No prior Department of Industry (DOI) approval needed; the FDI approval certificate is issued automatically upon online application via IMIS (imis.doind.gov.np).
  • Available for industries with total capital investment up to NPR 500 million.
  • The investor selects ONE sector per project multiple sub-sectors within that sector are allowed.
  • Open across 7 sectors: Energy-based, Tourism, ICT, Manufacturing, Agriculture & agro-based, Infrastructure, and Service industries.
See all 7 open sectors ↓

The 8-Step Company Setup Process

Click through each step to see the responsible agency and expected timeframe, from foreign investment approval to industry operation.

Step 1 of 87 days
1

Foreign Investment & Technology Transfer Unit, One Stop Service Center(OSSC)

The first step for any FDI industry: apply online via IMIS (imis.doind.gov.np).

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How to Apply Online: IMIS

All FDI applications are submitted and tracked through the Department of Industry's online portal.

1

Open a browser and go to imis.doind.gov.np.

2

Register as a new user, or log in with your credentials.

3

Create the required application from the left pane of the dashboard.

4

Complete the pre-designed form, add attachments, and submit.

5

Track step-by-step progress online. You'll be notified of any deficiencies and of approval.

All FDI-related applications FDI approval, SPA/SSA approval, Technology Transfer Agreement approval, visa recommendation, repatriation of royalty/dividend, and industry registration & licensing are processed through IMIS within the timeframes of the Foreign Investment and Technology Transfer Act (FITTA) 2019.

Required Documents

Document requirements vary by applicant type: Select a tab below to see the full checklist.

  • Online application via IMIS (imis.doind.gov.np)
  • Color-scanned project proposal (see required contents below)
  • Color-scanned Joint Venture Agreement, if more than one investor
  • Letter of authorization from the investing company/individual, if processing via a representative

Sector Explorer: Automatic Route

Seven sectors are open to the Automatic Route. Expand each one to see its sub-sectors.

Wind, solar & biomass energy production and manufacturing of related machines & equipmentBiogas-based energyEnergy as a by-product of the sugar industryEnergy feasibility studies

Restricted Sectors

A small number of sectors remain closed or capped for foreign investment.

Not Open to Foreign Investment

  1. 1.Primary agriculture businesses animal husbandry, fisheries, bee-keeping, fruits, vegetables, oilseeds, pulses, dairy except large industries and agri-tech/mechanisation exporting ≥75% of output.
  2. 2.Cottage and micro industries.
  3. 3.Personal service businesses hair cutting, tailoring, driving, etc.
  4. 4.Arms, ammunition, gunpowder/explosives, N.B.C. weapons; atomic energy and radioactive materials.
  5. 5.Real estate business (construction industries excluded), retail business, internal courier, local catering, money changer, remittance services.
  6. 6.Travel agency, tour/trekking/mountaineering guide services, rural tourism including homestay.
  7. 7.Mass communication media newspaper, radio, TV, online news and national-language motion pictures.
  8. 8.Management, accounting, engineering and legal consultancy; language, music and computer training.
  9. 9.Consultancy services with foreign investment above 51%.
  10. 10.Ride sharing with foreign investment above 70% (amended via Investment Ordinance, Nepal Gazette 2081/12/18).
  11. 11.Aviation caps: international air services 80%; domestic air services 49%; aviation training institutions 95%; maintenance institutions 95%.

Key Provisions & Incentives

Legal guarantees and incentives available to foreign investors once a company is set up.

Investment Thresholds

Minimum FDI threshold of NPR 20 million with no minimum for ICT-based industries via the Automatic Route, and no upper limit on investment.

Full Foreign Ownership

100% foreign ownership is permitted in many sectors.

Repatriation Guaranteed

Profits, dividends, capital, sale-of-share proceeds, liquidation proceeds, royalties, and lease rent can all be repatriated.

Protection Against Expropriation

A formal guarantee ensures industries with foreign investment will not be nationalized.

Tax Regime

Corporate income tax of 25% generally, reduced to 20% for priority sectors (energy, transport infrastructure, manufacturing) with tax holidays and customs exemptions in prioritized sectors (hydropower, tourism, agriculture, manufacturing) and cash incentives on exports.

Visas

Business visas are available for investors, representatives, and dependents; non-tourist (working) visas are available for foreign workers, backed by a labor permit and work permit.

Treaties & Memberships

BIPPA with France, Germany, UK, Mauritius & Finland; DTAA with Austria, Bangladesh, China, India, South Korea, Mauritius, Norway, Pakistan, Qatar, Sri Lanka & Thailand; membership of SAARC, WTO, MIGA, BIMSTEC, UNCTAD, BRI & UNESCAP; trade & transit treaties with India and a transit & transport agreement with China.

Credit Rating & LDC Graduation

A BB- sovereign credit rating from Fitch, with Nepal on track to graduate from Least Developed Country to developing country status by 2026.

Official Service Timelines

Per the Department of Industry's service charter, applications are processed within these timeframes.

New FDI approval (FITTA 2019, s.15(2))

7 daysDG / Director

FDI via Share Purchase Agreement

7 daysDG / Director

FDI via Technology Transfer Agreement

7 daysDG / Director

FDI via lease agreement

7 daysDG / Director

Repatriation recommendations share-sale proceeds, profit & dividend, liquidation proceeds, TTA royalty, lease rent, legal compensation, other legal provisions (FITTA 2019, s.20(2))

7 days eachDG / Director

Business visa recommendation (FITTA 2019, s.30(2))

2 daysDirector

Non-tourist (working) visa recommendation

2 daysDirector

Ready to Set Up Your Company in Nepal?

Our advisory team can guide you through every step, from FDI approval to industry operation.