Foreign investors registering a business in Nepal operate under the Foreign Investment and Technology Transfer Act (FITTA), 2075, alongside the standard Companies Act, 2063 registration process.
Approval Route
Most sectors now allow up to 100% foreign ownership through FDI approval, obtained from the Department of Industry (for smaller investments) or the Investment Board Nepal (for larger, strategic investments). This approval is a prerequisite before OCR company registration.
Minimum Investment Threshold
Nepal maintains a minimum foreign investment threshold per investor, which has been periodically revised upward to filter for genuine strategic investment — confirm the current threshold before structuring your entry, as it affects which route (automatic vs. approval) applies.
Structuring for Repatriation
A private limited company is generally the most efficient vehicle for foreign investors seeking to eventually repatriate dividends, since private companies tend to see faster dividend approval cycles than public companies, all else equal. Dividends are subject to a 5% withholding tax before repatriation.
Common Pitfalls
Missing NID for local directors, MOA/AOA capital figures that don't match the amount declared to the Department of Industry, and unsigned witness documents are frequent causes of delay for foreign-invested applications specifically.
Company Sathi supports foreign investors through both the FITTA approval and OCR registration stages — contact us to scope your entry into the Nepali market.
