Foreign Investment Sada Law Associates

Foreign Investment

Nepal has witnessed expanding regime of foreign investment in Nepal for the last few decades. Foreign Investment and Technology Transfer Act 2019 (“Foreign Investment Act”) which replaced Foreign Investment and Technology Transfer Act 1992 aims to reform and facilitate foreign investment in Nepal. Other key legislations that govern foreign investment are Foreign Exchange (Regulation Act) 1962, Industrial Enterprises Act 2016 while Department of Industry, Investment Board, Office of the Company Registrar, the central bank of Nepal, Nepal Rastra Bank are the major regulatory authorities. 

Foreign investment in Nepal is permitted as investment in shares, purchase of assets, technology transfer, lease of machinery and equipment, investment in secondary and foreign stock markets. The recent years have seen increasing investment in the sector of energy, e-commerce, information technology, manufacturing industry which have been more challenging and require innovative assessment due to legal gaps in such industries. The establishment of One Stop Service Center is expected to streamline approval requirements, and simplify legal process involved in foreign investment.

We provide service to obtain necessary approval from the concerned government authority, incorporate local company, register industry and prepare required commercial contracts and documents accordingly.