How to start a business in Nepal as foreigner with this 2026 guide.
Yes, you can start a business in Nepal as a foreigner. The route is foreign direct investment (FDI) under FITTA 2019. A foreign national or foreign company can hold 100% of the equity where the specific activity permits full foreign ownership.
The general minimum foreign investment in Nepal is NPR 20 million per investor, with no minimum for qualifying IT investment through the automatic route. These are capital requirements, separate from registration fees and the money needed to operate the business; the Department of Industry's minimum-investment notice establishes the general threshold, and the IT exception is explained below.
Where 100% ownership stops
A business can be open to foreign investment without allowing you to own all of it. Fully open activities permit 100% foreign equity; activities with an equity cap or required local participation need a different shareholding structure; closed activities cannot receive foreign equity merely by adding a Nepali partner. These distinctions follow the activity restrictions under FITTA 2019, section 3 and its Schedule and applicable sector rules.
Automatic-route approval does not remove an activity's ownership restrictions. Faster approval cannot turn a capped activity into a wholly foreign-owned business.
Do you need a Nepali partner?
No, not by default. In Nepal, full foreign ownership is possible under FITTA 2019 where the activity permits it. You need a Nepali co-owner when the relevant ownership rules require local participation, or when you choose one for commercial reasons.
The citizenship requirement for a sole proprietorship does not create a partner requirement for every company: they are different legal structures. A voluntary joint venture means sharing ownership and control, not simply appointing someone to handle filings; the guide to structuring joint ventures in Nepal explains that choice.
Which sector should you pick
Software development and computer training may both sound like “IT”, but Nepal's foreign-investment rules treat them differently. The first can qualify for the automatic-route capital exemption; the second appears among the restricted training activities in FITTA's Schedule. Your actual service, rather than the name on the company certificate, determines which rule applies.
IT: no minimum investment
Qualifying IT activities can receive foreign investment through the automatic route without a minimum investment amount. The exemption appeared in the Ministry of Industry, Commerce and Supplies notice dated 2080/06/15 BS (2 October 2023 AD) and is retained in the replacement Ministry notice dated 2082/11/04 BS (16 February 2026 AD).
The notified activities include software development, data processing and business-process outsourcing. For a qualifying solo founder or small team, this removes the general capital floor; it does not make incorporation, banking, premises or staff free.
The negative list, in plain English
The negative list closes or restricts particular activities, even when a Nepali citizen could operate that business. Familiar examples include hairdressing and tailoring, retail trading, local catering, travel agencies, homestays and general real-estate business. The Schedule to FITTA 2019 also distinguishes construction from restricted real-estate business and lists specific professional and training services.
That distinction matters to the business model: building premises and trading property are different activities, just as developing software and teaching computer skills are different services. Calling a restricted business a “technology company” does not change what it does. These examples explain the boundary; they are not an exhaustive statutory list.
What it costs to start a business in Nepal as a foreigner
Your budget has three parts: investment capital, government charges, and professional and operating costs. The NPR 20 million investment threshold is not a registration fee, and a company-registration quote does not necessarily include translation, remittance charges, immigration work or ongoing compliance.
The Office of the Company Registrar (OCR) calculates incorporation fees from authorised capital. That is a different figure from each investor's FDI commitment; the table uses NPR 20 million authorised capital as its example.
| Cost item | Amount or basis | What the amount covers |
|---|---|---|
| Private-company registration | NPR 19,000 at NPR 20 million authorised capital, under the Office of the Company Registrar fee schedule | Incorporation; the fee changes with the authorised-capital band |
| FDI approval | No application fee listed in the Department of Industry service charter | Professional assistance and separate registrations are different charges |
| PAN and VAT registration | No government registration fee in the Inland Revenue Department's Kalanki service charter | Registration itself; professional preparation is a separate service |
| Translation, notarisation and document authentication | Quoted for the documents and authentication route required | Language, page count, certified copies, courier costs and any consular requirements |
| Inward-remittance bank charges | Quoted by the sending and receiving banks | Transfer fees, intermediary deductions and the exchange rate applied |
| Visas and work permits | Separate government charges for the relevant permission | Applicant category, duration and renewals; see the visa section below |
| Accounting and annual audit | Professional fees agreed with the provider | Bookkeeping, tax returns, audit and company filings may be separate services |
Visa and work-permit renewals are government charges; translation and accounting are professional expenses. Neither category is covered merely by paying the OCR incorporation fee.
How long it really takes
FDI approval can be immediate on an eligible automatic route; the Department of Industry service charter publishes a 1–7 day target for the reviewed approval route. These are approval-stage service targets, not a promise that the company will be incorporated, banked, tax-registered and ready to trade within the same period.
The approval clock excludes time spent preparing foreign documents or resolving an incomplete application. A complete automatic-route file and a project awaiting sector permission therefore do not have the same setup timetable.
There is also a deadline after the investment arrives: the company or investor must apply to record the inflow within six months. Nepal Rastra Bank provides for a recording decision within seven working days of a complete application under NRB's Foreign Investment and Foreign Loan Management Bylaw, Bylaw 5. That filing deadline is distinct from the bank or authority's processing time.
Visas and work permits for foreign owners
An investment approval does not replace immigration or employment permission. The distinction is between your position as an investor and the position of a foreign employee working for the company.
Business visa vs non-tourist visa vs work permit
A business visa is the investor-related immigration route; a foreign employee normally needs labour permission and a non-tourist working visa. A company having foreign shareholders does not automatically place all its foreign staff in the business-visa category. The business visa guide for Nepal explains the investor application and supporting documents.
The Ministry of Home Affairs visa-fee Gazette, Immigration Rules Schedule 9, item 5 sets out the following business-visa rates. The capital bands refer to the qualifying personal investment, rather than simply the company's authorised capital.
| Investment amount | Monthly fee | Annual fee | 5 years |
|---|---|---|---|
| NPR 10 million or less | USD 35 | USD 400 | USD 1,000 |
| More than NPR 10 million but less than NPR 100 million | USD 20 | USD 200 | USD 500 |
| NPR 100 million or more | No charge | No charge | No charge |
The Department of Immigration's English fee table currently displays capital thresholds ten times higher than the Gazette. The table above follows the Gazette; Immigration needs to resolve that published discrepancy before an applicant relies on a fee assessment.
Working visas use a separate fee schedule: the Gazette's general “other foreigners” category is USD 75 per month, with different rates for specified categories. A visa payment does not include the labour-permit fee.
For an ordinary foreign-employee application, plan the work in this order:
- Complete the applicable recruitment process. For an ordinary appointment, the employer must address the requirement to recruit Nepali workers before seeking permission to hire a foreigner; specific exceptions apply.
- Apply for labour permission. Submit the employment agreement and supporting evidence to the Department of Labour and Occupational Safety.
- Apply for the working visa. Submit the required recommendation, labour permission and employment documents to the Department of Immigration.
The employment requirements and exceptions are set out in the Labour Act, 2074 BS (2017 AD), sections 22–24. Owning shares does not by itself settle the labour-permission requirements for a separate employed role.
Can you run it from abroad?
Yes, you can direct your investment from abroad; owning shares does not mean you must relocate to Nepal. FITTA 2019 provides investor visa facilities rather than making residence a condition of every investment, and the Office of the Company Registrar's guidance recognises both foreign individuals and foreign companies as founders.
The company still has work to complete in Nepal: tax and company filings, official correspondence and banking instructions. A representative's authority covers the powers actually granted, while the bank's signing and identification requirements remain separate. Remote ownership therefore does not mean every setup or banking action can be completed remotely.
What foreigners cannot do in Nepal
A foreign-investment approval does not settle every property, entity or operating question. Two distinctions are especially important when choosing premises and deciding how to register the business.
Do not treat FDI approval as unrestricted permission to buy land
You cannot treat FDI approval as an unrestricted right to buy land. A foreign-invested business can acquire land needed for its industry through purchase or other lawful means, subject to prevailing law; FITTA 2019, section 31 also provides for assistance from the investment-approving body. This does not give the foreign shareholder an unrestricted personal property right.
Leasing is an alternative to purchase, not a compulsory workaround for every foreign-invested company. The government's Nepal Investment Guide 2024, land availability section describes purchasing or leasing private land separately from government-land leases. The applicable land regime and agreement determine the lease duration and renewal terms.
Register as a sole proprietorship
The ordinary private-firm route requires a certified copy of Nepali citizenship, so a foreign national cannot use it simply because the proposed business has only one owner. That requirement appears in Private Firm Registration Rules, 2034 BS, rule 5, made under the Private Firm Registration Act, 2014 BS.
Being a solo founder does not require using a sole proprietorship. A company remains the relevant structure for the foreign-equity route discussed here.
Taking profits out of Nepal as a foreign investor
For an ordinary repatriation, the investor or company applies to its account-holding commercial bank for the foreign-exchange facility, supported by the relevant investment authority's approval or recommendation. Under NRB's Foreign Investment and Foreign Loan Management Bylaw, Bylaw 6, as amended, prior NRB approval applies to the specified exception involving remittance to a different country. The FDI guide's repatriation and investment-record section explains the supporting records and full procedure.
Nationality notes
An Indian investor's company-registration question and an Indian employee's work-permit question are separate. The Labour Act's treaty exception concerns employment permission; it does not substitute for the company's FDI approval. For Chinese investors, document preparation and remittance arrangements are covered in the guide to investing in Nepal from China.
The full FDI approval process, step by step
Starting a business in Nepal involves more than obtaining the company certificate. The complete guide to foreign direct investment in Nepal follows the approval, incorporation and bank-recording sequence, with the investor documents required at each stage.
Company Darta Nepal's foreign direct investment services cover investment documents, registration and compliance coordination. The scope follows your activity, ownership, investment amount and intended working roles.
How Company Darta Nepal can help
Company Darta Nepal supports foreign investors with FDI documentation, company registration and post-registration compliance. To discuss your setup, contact Company Darta Nepal with your proposed business activity, nationality, investment amount and ownership plan. Include whether you or your foreign employees intend to work in Nepal so we can scope the support around your business and staffing needs.
