Foreign Investment Policy of Nepal

Foreign Investment Policy of Nepal

• Foreign Investment is regulated and administered by the Foreign Investment and Technology Transfer Act and Industrial Enterprises Act
• Department of Industries (DOI) is the sole agency for administration and implementation of the Foreign Investment and Technology Transfer Act in Nepal
• Nepal has been pursuing a liberal foreign investment policy
• Nepal is striving to create an investment-friendly environment to attract FDI into the country
• Nepal is pursuing a liberal foreign investment policy to create an investment-friendly environment because of this there is great potential for investment in Nepal
• Nepal encourages foreign investment both as joint venture operations with Nepalese investors or as 100 percent foreign-owned enterprises
• few sectors are not open to foreign investment and are either reserved for national entrepreneurs in order to promote small local enterprises and protect indigenous skills and expertise or are restricted for national security reasons
• Approval of the Government of Nepal is required for foreign investment in all sectors
• No foreign investment is allowed in cottage industries
• However, no restriction is placed on the transfer of technology in cottage industries.