Investment Avenues

Investment Modalities

Investment can be made either in cash or in the form of tangible / intangible assets, e.g. machinery and equipment. “Investment in listed securities through secondary market by VCFs” can be done only after notification by Nepal Government.

Foreign Investment can be made in any industry in the following forms:

• Through investment in shares in a new or in existing industry, in foreign currency,
• Reinvestment of earnings derived from earlier investment,
• Lease financing of specified equipment like airlines, ships, machineries and equipment (up to prescribed threshold),
• Investment in venture capital funds (VCFs) by institutional foreign investors,
• Investment in listed securities through secondary market by VCFs,
• Acquisition of shares/assets of existing companies,
• Issuance of securities in foreign capital market,
• Investment made through technology & know-how transfer agreement,
• Investment maintained by establishing and expanding an industry in Nepal,

Investment as a foreign loan having prior approval from NRB beside the FITTA based on the separate regulations promulgated by NRB.

Company Types

Industries Restricted for Foreign Investment

1. Poultry farming, fisheries, bee-keeping, fruits, vegetables, oil seeds, pulse seeds, milk industry and other sectors of primary agro-production,
2. Cottage and small industries,
3. Personal service business (hair cutting, tailoring, driving etc.),
4. Industries manufacturing arms, ammunition, bullets and shell, gunpowder or explosives, and nuclear, biological and chemical (N.B.C.) weapons; industries producing atomic energy and radio-active materials,
5. Real estate business (excluding construction industries), retail business, internal courier service, local catering service, moneychanger, remittance service,
6. Travel agency, guide involved in tourism, trekking and mountaineering guide, rural tourism including homestay,
7. Business of mass communication media (newspaper, radio, television and online news) and motion picture of national language,
8. Management, account, engineering, legal consultancy service and language training, music training, computer training, and
9. Consultancy services having foreign investment of more than fifty-one percent.