Foreign Direct Investment Laws
One of the key practice areas of our firm is Foreign Direct Investment (FDI) and international business advisory services. We assist foreign investors and companies in establishing and expanding their business operations in Nepal in a smooth and legally compliant manner. Our firm provides practical and updated legal advice to ensure that our clients achieve their business goals effectively.
The Government of Nepal has introduced various liberal policies and regulatory frameworks to encourage foreign investment in different sectors. Keeping these opportunities in mind, our law firm advises foreign companies, overseas project offices and investors on the best available investment structures and legal options.
We assist clients in incorporating companies under the Companies Act, 2006 through joint ventures, wholly owned subsidiaries, and other business structures. Our services also include setting up liaison offices, representative offices, branch offices, and project offices in accordance with applicable laws and Central Bank Laws. We further guide clients regarding the operation of bank accounts and regulatory compliances required for foreign businesses in Nepal.
We assist clients in understanding the legal requirements for acquiring property for permitted business activities, repatriation of sale proceeds, transfer through gift or inheritance, and obtaining prior approvals where required under Nepal laws.
Foreign investment in Nepal is primarily governed by the Foreign Investment and Technology Transfer Act, 2075 (2019) & Foreign Investment and Technology Transfer Regulation , 2077 (2021).
We assist our clients with the following scope of work:
- Investment Approval ( Department of Industry & Investment Board)
Assist in obtaining foreign investment approval from relevant authorities
Advise on eligibility and sector-specific restrictions
- Company Incorporation
Establish foreign-invested companies and joint ventures
Draft shareholder and joint venture agreements
- Regulatory Compliance
Advise on post-investment compliance requirements
Assist with reporting and regulatory filings
- Technology Transfer
Draft and review technology transfer agreements
Assist in approval of technical service and royalty arrangements
- Capital Injection and Repatriation
Assist with capital infusion procedures
Advise on profit, dividend, and capital repatriation
- Sector-Specific Investment
Advise on investment in telecom, aviation, energy, and other sectors
Assist in obtaining industry-specific approvals
- Share Transfer and Exit
Assist in transfer of shares to foreign investors
Support exit structuring and divestment
- Dispute Resolution
Represent investors in regulatory and commercial disputes
Handle proceedings before authorities and courts
- Due Diligence
Conduct legal due diligence for foreign investors
Review regulatory, corporate, and compliance status of target companies
- Employment and Immigration Support
Assist with work visa and labor approvals for foreign personnel
Advise on employment compliance for foreign-invested companies