World Watch/Nepal/Starting a Business

Starting a Business · Nepal

Starting a business in Nepal: foreigner's guide (2026)

ModerateForeign Investment and Technology Transfer Act 2075 (2019) (FITTA); Companies Act 2063 (2006); Industrial Enterprise Act 2076 (2019) — administered by the Department of Industry (DOI) and Office of Company Registrar (OCR)Country index 72 · B

Nepal shaded by its starting a business status

Nepal permits foreign direct investment with up to 100% foreign ownership in most sectors not on the statutory negative list, but foreign investors must first obtain approval from the Department of Industry (DOI) through the One Stop Service Centre (OSSC) before registering with the OCR. A minimum capital threshold of NPR 20 million (≈ USD 150,000) applies to most sectors, and the end-to-end process — from DOI approval through OCR registration and PAN issuance — typically takes 3–6 weeks.

Key points

Foreign Ownership Caps

100% foreign ownership is allowed in most sectors. Sector-specific caps apply: 80% in telecommunications, 51% in consulting services, and 49% in domestic air transport. No blanket ceiling on the share or total amount of foreign investment exists.

Negative List (Restricted/Prohibited Sectors)

FITTA Schedule I bars foreign investment in cottage and personal-service businesses (barber shops, tailoring, driving schools), primary agriculture (poultry, fisheries, horticulture, dairy), retail trade, real estate (excluding construction), travel and trekking agencies, homestay/rural tourism, mass media, remittance services, and arms/ammunition/radioactive materials. Foreign investors can only enter sectors classified as 'industry' under the Industrial Enterprise Act and not on this negative list.

Minimum Capital Requirement

The general minimum foreign investment threshold is NPR 20 million (approximately USD 150,000 at current rates) per project, as notified under FITTA 2019. IT/technology startups are exempt from this minimum up to a ceiling of NPR 50 million in investment.

Mandatory DOI/OSSC Pre-Approval

Foreign investors must apply for FDI approval through the FITT Unit of the DOI's One Stop Service Centre (OSSC) at imis.doind.gov.np before approaching the OCR. The statutory target for DOI decisions is 7 working days for investments up to NPR 6 billion; in practice 1–3 months is common. A refundable deposit of NPR 20,000 is required at application.

OCR Company Registration Steps

After DOI approval, registration proceeds on the CAMIS online portal (camis.ocr.gov.np): (1) name reservation, (2) preparation and upload of MoA and AoA, (3) fee payment via eSewa/Khalti, (4) digital certificate issuance. Post-registration, investors must register for a Permanent Account Number (PAN) at the Inland Revenue Office and arrange capital remittance through Nepal Rastra Bank.

Typical Timeline

End-to-end, the process from DOI application to OCR certificate and PAN issuance takes approximately 3–6 weeks for straightforward cases. The OCR registration stage alone takes 5–10 working days after document submission. Investments above NPR 6 billion are routed to the Investment Board Nepal and have longer approval timelines.

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Last verified 5/24/2026 · Orientation, not legal advice - verify against the primary sources linked above. Explore the full world map →