Investing in Nepal from the USA has become increasingly attractive due to Nepal’s liberalized foreign investment laws, expanding infrastructure sector, hydropower potential, tourism growth, IT outsourcing market, and strategic location between India and China. The Government of Nepal actively encourages Foreign Direct Investment (FDI), including investment from US citizens and NRNs (Non-Resident Nepalis).
Whether you are a US citizen of Nepali origin or a non-Nepali American investor, this guide explains the legal framework, eligibility, investment process, sectors, cost, timeline, tax implications, and compliance requirements for investing in Nepal from the United States.
Foreign investment from the USA is regulated by:
Foreign Investment and Technology Transfer Act (FITTA), 2075 (2019)
Industrial Enterprises Act, 2076
Companies Act, 2063
Public Private Partnership and Investment Act, 2075
Bank and Financial Institutions Act (BAFIA)
Income Tax Act, 2058
Value Added Tax Act
Foreign Exchange (Regulation) Act, 2019
Investment Board Nepal (IBN) – For large projects (above threshold limit)
Department of Industry (DOI) – For medium-scale FDI
Office of Company Registrar (OCR) – Company incorporation
Nepal Rastra Bank (NRB) – Foreign currency approval
In most sectors, US investors can own 100% of a company in Nepal, except restricted sectors.
Generally NPR 20 million (approx. USD 150,000+) minimum FDI (subject to revision).
US investors can legally repatriate:
Dividends
Profits
Royalties
Sale proceeds
Loan repayments
Repatriation requires approval from Nepal Rastra Bank.
Nepal and the USA maintain trade and diplomatic relations. Nepal is also eligible for:
US GSP (Generalized System of Preferences)
MCC Compact projects
Depending on project size:
| Authority | Role |
|---|---|
| Department of Industry (DOI) | Approves FDI projects |
| Investment Board Nepal (IBN) | Large infrastructure projects |
| Office of Company Registrar | Company registration |
| Inland Revenue Department | Tax registration |
| Nepal Rastra Bank | Foreign exchange approval |
| Local Municipality | Local permits & licenses |
Foreign Direct Investment (FDI) in business, industry, infrastructure, IT, tourism, or energy sectors.
US citizens
US-based companies
NRNs living in USA
US venture capital funds
Low labor cost
Growing market
Hydropower potential
Tourism expansion
Strategic geographic location
Across Nepal — Special Economic Zones (SEZ), Kathmandu, Pokhara, Terai industrial corridor.
Any time, subject to regulatory approval.
FDI approval → Company registration → Capital injection → Business operation.
To invest legally:
Must not invest in restricted sectors
Must meet minimum capital threshold
Must declare source of funds
Must comply with anti-money laundering laws
Must register investment through formal banking channels
Hydropower & Renewable Energy
Tourism & Hotels
Information Technology & Outsourcing
Agriculture & Agro-processing
Education & Healthcare
Manufacturing
Infrastructure & Construction
Cottage industries
Retail business (limited cases)
Real estate trading (direct speculative land trading restricted)
Media (partial restriction)
Private Limited Company
Public Limited Company
Joint Venture
Branch Office
Liaison Office
Apply to:
Department of Industry (DOI) or
Investment Board Nepal (IBN)
Register at Office of Company Registrar (OCR).
Open company bank account in Nepal.
Transfer funds through official banking channel.
Obtain foreign currency confirmation from Nepal Rastra Bank.
PAN registration
VAT registration (if applicable)
Apply for operational licenses depending on sector.
Company registration fee (based on capital)
Industry registration fee
FDI approval fee
Legal & consultancy fees
Office setup cost
Compliance & audit cost
Tax obligations
Corporate Tax Rate:
Standard corporate tax: 25%
Special industries: Reduced rates may apply
FDI Approval: 2–6 weeks
Company Registration: 3–7 days
Capital Injection Approval: 1–2 weeks
Total Setup Time: 1–3 months (depending on sector)
Large infrastructure projects may take longer.
US investors must:
File annual audit reports
Submit tax returns
Comply with labor laws
Maintain minimum capital requirement
Obtain environmental clearance (if applicable)
Follow repatriation approval process
Non-compliance may result in penalties or cancellation of license.
Yes. US citizens can invest in Nepal under FITTA 2019 in most open sectors.
Generally NPR 20 million (subject to change by government policy).
Yes, profits and dividends can be repatriated after tax clearance and NRB approval.
Nepal provides legal protection for foreign investors under FITTA and investment laws, but due diligence is essential.
Yes, NRNs can invest either as foreign investors or under NRN citizenship provisions.
Usually 2–6 weeks depending on sector and documentation.
Yes, certain sectors like hydropower, IT, and export industries receive tax incentives.
Yes, with proper registration and regulatory approval.
Investing in Nepal from the USA offers promising opportunities, particularly in energy, tourism, IT, infrastructure, and agriculture. Nepal’s liberal foreign investment regime allows 100% foreign ownership in many sectors and guarantees repatriation of profits. However, regulatory compliance, capital threshold requirements, and proper legal structuring are essential for smooth operation.
Professional legal and tax planning is strongly recommended before initiating FDI.
This article is for informational purposes only and does not constitute legal or investment advice. Investment laws and policies in Nepal are subject to change. Investors should consult a qualified legal and financial advisor before making investment decisions.
February 20, 2026 - BY Admin