www.triphimalaya.com Investment Promotion Agency of Nepal (FIPAN)
Welcome to Prospective foreign Investor in Nepal
We would like to thank you for taking the time to consider investing in Nepal. The reasons why such investment can
benefit your company are outlined on this website. The Foreign Investment Promotion Agency of Nepal can assist you
make that decision and we are at hand to support you during the process.
Nepal, a sovereign Independent Republic, lies between 80 degree 12' east longitude and 26 degree 22' and 30 degree 27' north
latitude. It is bounded on the north by the Tibet Autonomous Region of the People's Republic of China; on the east by Sikkim and
West Bengal of the Indian Union on the south by Indian States of Bihar and Uttar Pradesh and on the west by Uttar Pradesh of
Indian Union. The length of the Kingdom is 885 kilometers east-west and its breath varies from 145 to 241 kilometers north-
south. Climatically, it lies in the temperate zone with the added advantage of altitude.
Locating your business in Nepal offers significant competitive advantages – often more attractive than in other
countries of the region – including penetration into a wider, regional market.
To find out more about investment opportunities in Nepal, to obtain more information on any of the topics covered on
our website, or to learn more about our services and support, please contact us directly.
-FIPAN Team
ABOUT US:
Foreign investment promotion agency of Nepal (FIPAN) is a provincial foreign investment promotion agency in Nepal,
developed to promote the province as an investment destination and promote trade by assisting FIPAN.FIPAN is
incorporated under the private limited Agency registration Act of Nepal that, mainly engaged in the foreign investment
promotion, Joint venture, technology transfer etc.
If you’re looking to invest, we can help you save time and money, so that your investment is effective and profitable.
FIPAN enthusiastic team of experts will tailor solutions to suit your specific requirements and put you in touch with
private and public organizations including an aftercare programme. We create partnerships with foreign investors in
order to pave the way to taking advantage of new opportunities for the benefit of all stakeholders broadly perceived as
essential to the long-term economic success of Nepal and its partner countries.
FIPAN operates on a mandate to attract and retain foreign direct investment, foster entrepreneurial spirit and
innovation, help companies venturing into international markets, and promote globally the business image of Nepal to
improve performance in line with commitment to land more FDI projects in Nepal.
A growing network of Nepal economic representative offices provides direct support to companies eager to strengthen
their presence in a specific market and to promote bilateral trade, investment, culture, science and technology
exchanges and cooperation as the building blocks of better understanding.
Nepal’s ability to attract FDI and to benefit from it is equally important to domestic investors. Attractive terms to
investors are part of the country’s overall economic policy and incentives focus on the activities that create the
strongest potential for linkages between foreign-owned and domestic firms, education, training and R&D.
Our Services
Services that FIPAN offers foreign investors
Support from A to Z
1. Information on industrial sites and local suppliers
2. Information on legislation, taxes and incentive
3. Links with industry and local authorities
4. Organization of fact-finding missions, business and investment conferences and trade shows.
5. The facilitation of joint ventures and business linkages between small and big business.
6. The provision of relevant, reliable information to investors and traders.
7. Assistance with applications for investment incentives and export marketing incentives.
8. Assistance to foreign investors with applications for business permits and Business Visa.
9. Negotiation of local government incentives on behalf of investors.
10. Provision of project support and aftercare services.
11. Assisting investors to locate suitable premises and to secure project and operational financing.
12. Opening company’s bank account
FOREGIN INVESTMENT
The Department of Industries can be recommend non-tourist (NT) visa for a period of up to six months (one, two or three
Months – discretionary power of Department of Industries for research, market study and application procedure, if visitors need
visa. Foreign visitors should complete their investment study, apply and get permission for foreign investment within this period
from Department of Industries.
Visitors once satisfied with the research and market study should apply for foreign investment permission.
The fee for such business visa is US$ 100 per year per person. For five years visa the fee is US$ 250 per person.
As per the foreign investment and Technology Transfer Act of Nepal (1992), "Foreign investment" means following
investment made by a foreign investor in any industries.
Investment in Shares (equity)
Reinvestment of the earnings (Dividend) of shares
Investment made in the form of loan and loan facilities
Use of any technological rights specialization, formula, process, patent, or technical Know-how of foreign
origin.
Use of any trade mark of foreign ownership,
Acquiring any technical consultancy, management and marketing service
Foreign investors are permitted to own up to 100 percent equity share in small, medium and large-scale industries.
Foreign investment is allowed in all areas except the few as mentioned below.
Industries to be granted permission for foreign investments
1. Business classified as industries by Industrial Enterprises Act, 1992
a) Manufacturing Industry-
Industries which produce goods by utilizing or processing rawmaterials, semi-processed materials, by products or waste
products or any goods.
b) Energy-Based Industries :-
Industries generating energy from water resources, wind, solar, coal, natural oil, gas, bio-gas or any other sources.
c) Agro and Forest based Industry: -
Business mainly on agriculture or forest products such asintegrated sericulture and silk production, horticulture and fruit
processing, animal husbandry,dairy industry, poultry farming, fishery, tea gardening and processing, coffee farming and
Processing, herbiculture and herb processing, vegetable seed farming, mushroom vegetable farming or vegetable
processing, tissue culture, green house, bee-keeping, honey production, rubber farming, floriculture production and
forestry related businesses such as lease-hold forests, agro-forestry, etc.
d) Mineral Industries: -
Mineral excavation or processing thereof.
e) Tourism Industries: - Tourist lodging, motel, hotel, restaurant, resort, skiing, gliding, water rafting, cable car complex,
pony-trekking, trekking, hot air ballooning, Para sailing, golf course, polo, horse riding, etc.
f) Service Industries: -
Workshop, printing press, consultancy service, ginning and baling business, cinematography, construction business,
public transport business, photography, hospital, nursing home, educational and training institution, laboratory, air
services, cold storage, etc.
g) Construction Industries: -Road, bridge, ropeway, railway, trolley bus, flying bridge and industrial, commercial and
residential complex construction and operation
2. Business classified as industries by the decisions of industrial
Promotion board on various dates.
a. Manufacturing Industry-
Manufacturing and packing of photographic film roll from jumbo roll by cutting, slitting, confecting, perforating and
capping; manufacturing of cinematographic film, medical and X-ray film, graphic art film, photographic paper through
the process of cutting, slitting from imported jumbo roll
b. Agro and Forest based Industry:-
Cotton farming, production and processing of cotton & cotton seeds; Commercial farming of Bamboo & Nigalo and
manufacturing of various products from the same; Commercial farming of horticulture cash crops; Poultry breeding;
Establishment, conservation & management of botanical gardens
c. Tourism industry :- Village tourism, Other adventure tourism business
d. Service industry:-
Photo paper slitting; Tissue paper slitting; Ball Bearing assembly; Telephone Service (Cellular telephone, Mobile
telephone & paging telephone service) and Television broadcasting (Satellite television & Cable television
transmission);Dyeing of textile yarn, yarn sizing and fabric printing (except textile industry doing for their own purpose);
Computer software; Electricity and battery operated 3-wheel and 4-wheel public transport service; Battery charging
service for above mentioned vehicles; Security Service to Banks & financial institutions, indus tries, hotels, office
complexes, Diplomatic missions and residential buildings; Production of advertising materials and advertising agency
business; Publication; L.P. Gas refilling service; Digital Mapping; Production and broadcasting of teledrama, telefilm,
advertising materials, health and education related program and documentary film; L.P.Gas refilling service for cars &
tempos; Rental, repair & Operation of heavy construction equipment: Commercial veterinary health service; Diagnostic
service; Operation of convention hall; Sewerage collection & treatment; Operation of Drinking water supply system;
Operation of fuel & gas pipeline; Operation of godown & storage facilities; Operation of airports; Operation of sports
complex; Operation of ropeways; Operation of irrigation facilities; Operation of roads; Operation of electricity power
stations; Operation of railways and their maintenance; Shipping business; Interior decoration; Courier service; CD ROM
recording; Management and operation of Inland Container Depot
e. Construction Industry:-
Construction and operation of Road, bridge, ropeway, railway, trolleybus, tunnel, flying bridge & industrial, commercial
& residential complex;Construction and operation official & residential complex Construction, management and operation
of convention hall infrastructure; Construction, management of sewerage system; Construction, management & operation
of water supply pipeline Infrastructure; Construction, management & operation of fuel & gas Pipeline Infrastructure;
Construction, management & operation of Irrigation infrastructure; Construction, management & operation of Electricity
power station and electricity transmission infrastructure. Industrial promotion board may decide to classify certain
business not falling either in the positive list or negative list as industry depending upon on the nature and merit of the
business, thus opening the business for foreign investment. Foreigners are therefore welcome to apply for foreign
Investment permission in the business too.
Industries not to be granted permission for foreign Investment:
Cottage Industries. ( cottage industries are Handloom, Pedal Loom, Warping, Dyeing and printing, tailoring (
other then readymade Garments), Woollen carpet, etc)
Service (Business such as Hair Cutting, Beauty Parlour, Tailoring, Driving Training, etc.).
Arms & Ammunition Industries.
Gunpowder, Explosives.
Industries related to Radio-Active Materials.
Real Estate Business (excluding Construction Industries).
Film Industries ( National Languages and other recognized languages of Nation)
Security Printing.
Bank notes &Coins
Retail Business.
Travel Agency.
Trekking Agency.
Water Rafting.
Pony Trekking.
Horse Riding.
Cigarette, Bidi (Tobacco), Alcohol (excluding those exporting more than 90% ).
Internal Courier Service.
Atomic Energy.
Poultry
Fisheries.
Bee-keeping.
Consultancy Services such as Management, Accounting, Engineering and Legal Services.
Technology transfer is possible even in areas where foreign investment is not allowed.
Government policy
Industrial Enterprises Act 1992 has guaranteed against nationalism of privately owned industries enterprises. The
government does not interfere in the fixation or control of prices of industrial products. Industries can approach any
commercial bank directly to open letter of credit for the import of machinery or raw materials needed for the industry.
Recommendation or import license from either department of industries or department of commerce or Nepal Rastra
Bank ( central Bank of Nepal) is not necessary. Except industries that affect security and public health, other industrial
activities do not require obtaining any license or permission for establishment and operation. They just need to be
registered with the concerned Department. Reparation of profits, dividend, technical and managerial fees, and certain
portion of salaries of foreign experts have been guaranteed Non- tourist visa for carrying out studies for investment and
business/residential visa for foreign investors have been provisioned and the procedures have been further simplified.
At international level, Nepal has taken numerous steps to promote foreign investment in the country. Some of the key
institutional arrangements that have been achieved so far are
Nepal is a member of World Intellectual Property Organisation (WIPO)
Nepal has entered into Bilateral Investment treaties with countries such as France, Germany, Mauritius and
United Kingdom.
Nepal has also entered into Double Taxation Treaties with 9 countries, namely, India, Norway, China, Pakistan,
Sri Lanka, Austria, Thailand, Mauritius and republic of South Korea.
To ensure access to the vast potential market, Nepal is the member of WTO, SAFTA and BIM-STEC
Nepal is also a signatory to the convention on the settlement of Investment Dispute between the state and
Nationals of Others States and a member of the International center for the settlement of investment Disputes
(ICSID), associated with the World Bank.
Procedural to get approval from Department of Industries (DOI)
Any foreign individual or company that are willing to invest in Nepal will have to get prior approval from the DOI.
Foreigners can invest in Nepal in the following Mode.
Establish a new industry either with 100 % foreign equity or in Joint Venture With Nepalese/foreign investors.
Engage in Technology Transfer in an existing industry
Make an equity investment in an existing industry by Share Transfer
Make a loan investment, foreign or local, in an existing industry.
Foreign Equity Investment in New Industries
To get approval from DOI in Foreign Equity Investment in New Industries, the following document will be required.
Project report ( FIPAN will make your project reports.)
Joint Venture Agreement (JVA), in case of more then one investors
Citizenship certificate of locals party/or certificate of incorporation including Memorandum of Association and
Articles of Association, if local party is a company.
Copy of Passport or foreign party/or certificate of incorporation, including Memorandum of Association and
Articles of Association, if participant is a company.
Bio-data/company profile of the foreign party
Financial Credibility of the foreign Investor provided by a home country Bank or domiciled country bank.
Authority letter from the concerned companies or individuals to carry out any necessary work on their behalf, if
applicable.
Technology Transfer in an existing Nepalese Industry
To get approval from DOI in Technology Transfer in an existing Nepalese Industry, the following document will be
required.
Technology Transfer Agreement
Citizenship certificate of local party/or certificate of incorporation including Memorandum of Association and
Articles of Association, If local party is a company
Copy of Passport or foreign party/or certificate of incorporation, including Memorandum of Association and
Articles of Association, if participant is a company.
Bio-data/company profile of the foreign party
Industry Registration Certificate
Copy of the minute of the Board of the recipient Company
Authority letter from the concerned companies or individuals to carry out any necessary work on their behalf, if
applicable.
Foreign Investment in an Existing Industry by Share transfer
To get approval from DOI in Foreign Investment in an Existing Industry by Share transfer, the following document will
be required.
Request from the share transferor
Request from the share transferee
Share Transfer agreement
Copy of minute of the Board meeting of Nepalese company regarding inclusion of foreign investor into the
company
Copy of minute of Board meeting, certificate of incorporation and company profile of the foreign party if the
participant is a company.
Copy of passport and Bio-date of foreign party, if participant is an individual
Financial credibility certificate of the Foreign Investor provided by a bank.
Current Shareholders' list as certified by the Company Registrar's office
Audit Report
Tax clearance certificate
Authority letter from the company concerned to sign on behalf of the companies.
Loan Investment in an Existing Nepalese Industry
To get approval from DOI in loan Investment in an Existing Nepalese Industry , the following document will be
required
Loan Agreement
Certificate of incorporation including Memorandum of Association and Articles of Association of the lending
company
Company profile of the lending agency
Industry Registration certificate
Copy of the minute of the Board of the recipient company regarding the loan to be acquired
Authority letter from the company concerned to sign on behalf of the companies.
Registering a Company
The procedure of company’s registration in Nepal for Foreigner
There are several kinds of foreign investment companies that have difference in amount of authorized capital and
activities companies can make. A company with limited responsibility has minimum 1600000 Nepali Rupees (20000
U.S dollars) as authorized capital while other forms of companies may have authorized capital up to 1600000 Nepali
Rupees (20000 U.S dollars).
.
If to describe the procedure of registering a company without unnecessary details it will look like signing registering
documents (company’s regulations, application to trade court, and other documents that describe company’s activities)
by notary and providing documents to Trade court where all Nepali companies are registered. According to Nepali law
actions needed for company registration can be done by owner himself or by a person to whom an owner has given
warrant. There is no need for you to be present in Government office for registering a company; all you need to do is to
provide to FIPAN specialist a warrant in which you will give him right to register a company for you. After finishing
company registering procedure it will be registered in tax bureau. A whole procedure of company registration usually
continue 3-4 weeks (from the moment notary has signed registering documents).
Authorized capital
The minimum authorized capital needed for registering is 1600000 Nepali Rupees that is equal to 20000 U.S.dollars.
According to Nepali law after company will be registered its owner can use it for running business (paying salary to
workers, advertisement, office rent).
Any person who reached 18 years old can become owner of Nepali company. Company’s “life” is not limited; you can
do business and use its means as long as you wish. But each year before end of January one has to submit annual report
about company’s activity.
Submitting documents for company’s registration
A company with limited responsibility can be established on the basis of its regulations. While company’s registration
regulations have to be made in a written form and approved by notary
. After that the following documents has to be submitted and signed by notary:
- Application for registering a company in Trade Court;
- Application of a person providing money for authorized capital;
- Application of a company’s president with examples of signature.
For submitting documents for companies registration one has to provide:
- Company’s name .
- Juridical address of a company
- Company’s activities
- Owner or co-owners data (name, surname, maiden name, date and place of birth, number of passport for
traveling abroad, passports validity)
- Amount of authorized capital (minimum 20000 U.S.dollar)
- Amount each co-owner contributed (minimum 20000 U.S dollar)
- Company president’s data.
Opening company’s bank account and paying authorized capital
For registering a company one need to open an account where company’s authorized capital (20000 U.S.dollar) has to
be put.
Registering a company in Trade List
Registering a company in Financial Bureau
After registering a company and getting registration certificate one has to register it in Tax and Financial Bureau.
Government of Nepal has adopted an open and liberal policy to pave the way for the accelerated economic and social
development of the country. Especially in the field of industry and trade, the government policy is aimed at giving the private
sector a dominant role. The private initiatives and enterprises are expected to increase efficiency and productivity. The
government's role will be that of a facilitator providing infrastructure and conducive environment for investment.
Contat US
Foreign Investment promotion Agency of Nepal (FIPAN)
Nayabazaar 16,Kathmandu Nepal
P.O.box:25908
Tel: +977-1-4387416
Call us anytime at 00977-9849609949
www.nepal
E-mail:info@---------------
Testimonials
“I was looking for new place to invest in the world, I came to Nepal in 2009 I found a good opportunity to invest in Nepal for
hotel business. I have been started my business in chitwan as a Name of Crown hotel and restaurant since 2009.I was looking
for a foreign investment promotion agency to help for foreigner in Nepal I found (foreign investment promotion agency of
Nepal) FIPAN to help me everything ,Thank you FIPAN for helping to establish my business in Nepal”
-Kim Soo Han (Korean)
“I came to Nepal in 2008 as a visitor I was so much impressed from the nature of Nepal then I planned to invest in Nepal for IT
sector. Again I came to Nepal in 2010 to establish business from Portugal I was looking for agency to help me to establish
business in Nepal I found an agency of FIPAN to help for foreign investment. The team of FIPAN is so friendly and active to
work with foreign people I like this agency so much Thank you FIPAN”
-Robert Marco( Portugal)
“Thank you FIPAN for helping me to open a business in Nepal. I have a good experience with the team of FIPAN.I found FIPAN
as a specialist for foreign investment promotion in Nepal. Keep doing well job for next one too.”
-Leonardo (Mexico)
Home About Us Our services Foreign Investment Registering a Company Government policy Contact US
Design of Home page
Testimonials Welcome to Prospective foreign Investor in Nepal