Investors wishing to invest in Nepal need approval from the concerned authorities before registering a company or opening a bank account. The approval process is a due diligence exercise of the incoming funds to ensure easy repatriation of the principle and dividends later on.
While the Department of Industry (DOI)/Industrial Promotion Board is responsible for approving small and medium-tier investments, large-scale investments are approved by IBN.
Any foreign individual or firm that wishes to conduct either one or a combination of the following forms of investments will have to obtain prior approval from either IBN or the Department of Industry
Forms of foreign investment
Investment approval entities differ according to project size. For projects over NPR 10 billion (USD 100 million), investors can apply through IBN. Please refer to the Application Process for details.
For projects below this threshold, interested parties should contact the Department of Industry (DOI).
Regardless of the amount, foreign investments in the following areas will be approved by IBN.
Investors applying for investment approval from IBN to start a business in Nepal are required to follow the process below. The company/tax /central bank/ industry registration process will continue after approval from IBN; however, we are committed to supporting investors by facilitating dealings with the appropriate government agencies in Nepal.
Step 1: Fill out the foreign investment approval form (in case of foreign investors). The approval of foreign investment can take up to a month, provided all information required by IBN is provided in the format requested.
Step 2: IBN will issue a letter of approval for foreign investment.
Step 3: Register the company at the Company Registrar’s Office (CRO). Documents required to register a company are available from CRO's website or in the Related Content section below. Please note that the CRO requires the Memorandum of Understanding (MOU) and Articles of Association (AOA) to be in Nepali. The registration process takes about two weeks.
Step 4: The company has to be registered with the district office of the Inland Revenue Department or Inland Revenue Office (IRO) before it is operational. There is no fee or deposit required to obtain a PAN/VAT number. The documents required are available from IRO's website or in the Related Content section below.
Step 5: After obtaining approval for foreign investment, the company is required to register with the Department of Industry in the requested format. The documents required are available from the DOI's website or in the Related Content section below.
Step 6: The company is also required to register at the Nepal Rastra Bank (NRB), Nepal's central bank. Please visit NRB's website for further details or refer to the Related Content section below.