Foreign Investment Nepal: FDI Rules 2083/84

Updated August 2026. The minimum investment threshold below is confirmed and current. Repatriation rules changed significantly in late 2025 and again in the FY 2083/84 budget — verify the implementing bylaw before relying on the newest position.

Nepal has quietly become far more open to foreign investment than most people realise. In January 2026 the ceiling on the automatic route was abolished entirely — and in the review period that followed, most foreign-investment registrations came through it rather than through approval.

The Minimum Investment: Rs 2 Crore

⭐ The minimum foreign investment is NPR 20,000,000 — two crore — per foreign investor. This was set by Cabinet decision in October 2022 and took effect in November 2022, reduced from Rs 5 crore. It remains Rs 2 crore for FY 2083/84, and was explicitly retained in the January 2026 reform.

⚠ A reporting error you will encounter. The FY 2082/83 budget was reported in places as “lowering the FDI threshold from Rs 5 crore to Rs 2 crore.” That reporting is duplicative or simply wrong — the threshold had already been Rs 2 crore since November 2022. If you see it presented as a recent change, treat the source with caution.

💻 IT is exempt from the minimum entirely. A Ministry notice dated 2080/06/15 BS (October 2023) exempts a listed set of IT industries from the minimum threshold altogether — technology park, IT park, biotech park, software development, data processing, digital mapping, BPO, KPO, data centre, data mining, cloud computing, web portal, web design and web hosting. This was reaffirmed in the 2026 reform. For a software or IT services venture, there is no minimum.

The Automatic Route — the Big 2026 Change

102Sectors on the automatic route

No ceilingThe previous Rs 50 crore cap was abolished

711 of 914Registrations that came via the automatic route

A Cabinet decision of 22 January 2026, implemented by Gazette notice, expanded the automatic route to 102 business sectors across seven areas — energy, agriculture and forest-based industries, infrastructure, tourism, information technology, service industries and manufacturing — and removed the previous ceiling that capped the route at Rs 50 crore.

The uptake tells you it is real. Of 914 foreign-investment industries registered in the review period, 711 came through the automatic route against 203 by approval. ICT led with 577 projects, around 63% of the total, with tourism next at about 22%.

We could not verify the exact Gazette date or obtain the authoritative list of the 102 sectors. Before assuming your sector qualifies, confirm with the Department of Industry.

Who Approves What

Investment size	Approving body
Below NPR 6 billion	Department of Industry
NPR 6 billion and above, or energy projects of 200 MW or more	Investment Board Nepal, chaired by the Prime Minister

The Rs 6 billion split is consistently reported but we did not see it in a primary instrument — confirm if your investment is near that line.

The Process

Approval from the Department of Industry — or automatic-route registration if your sector qualifies.
Incorporate the company at the Office of the Company Registrar. Note that registration with the Department must follow within 35 days of investment approval.
Tax registration with the Inland Revenue Department.
Open the bank account and bring capital in through banking channels. This matters enormously for repatriation later.
Record the investment with Nepal Rastra Bank.
Visa arrangements for the investor and representatives.

A Single Point Service Centre is provided for under the foreign investment law, intended to deliver approval, registration, visas and work permits from one place. The FY 2083/84 budget also announced an “Investment Express” concept targeting three-month end-to-end approval — reported, not verified.

Getting Your Money Out

Repatriation became substantially easier at the end of 2025. A reported amendment to Nepal Rastra Bank’s foreign investment bylaws removed the requirement for prior central-bank approval for foreign equity investments, including into existing companies and share transfers — and allowed commercial banks to approve repatriation directly, within 15 working days of a complete application, on the strength of the approval letter and tax clearance.

Two caveats that matter. First, Nepal Rastra Bank approval is still required where funds are repatriated to a country different from the source of the investment — so route your investment thoughtfully at the start. Second, the FY 2083/84 budget announced that prior approval for repatriation would be replaced by notification, but we could not verify that the implementing bylaw amendment has been issued. Confirm the current position with your bank before you plan an exit.

The practical rule that survives every rule change: bring capital in through the banking channel, get the investment properly recorded with Nepal Rastra Bank, and keep the documentation. Repatriation problems in Nepal almost always trace back to money that came in informally or was never properly recorded — not to the rules on the way out.

🤝 Planning foreign investment into Nepal?

Tell us the sector and rough investment size. Digital Solution will help you understand whether the automatic route applies, which office approves, and what to get right at the start so repatriation is straightforward later.

📲 WhatsApp: +977 9766597181 Our Services →

The Negative List

Some sectors are closed to foreign investment outright:

Agriculture and small industry

Primary agriculture — poultry, animal husbandry, fisheries, beekeeping, fruits, vegetables, oil seeds, pulses, dairy — and small and cottage industries.

Personal services and retail

Hair cutting, tailoring, driving; retail trade, local courier, local catering, money changing and remittance services.

Tourism services

Travel agencies, tour guides, trekking and mountaineering guides, homestay and rural tourism.

Media and professional services

Mass media in the national language, domestic motion pictures; management, accountancy, engineering and legal consultancy; language, music and computer training.

Also closed: arms, ammunition, explosives, weapons of mass destruction, radioactive materials and atomic energy; and real estate trading — though construction industries are not caught by that ban.

Sectors with an equity cap

Sector	Maximum foreign equity
Consultancy services	51%
Ride-sharing	70%
International air service	80%
Domestic air service	49%
Aviation training and maintenance	95%

The negative list is amended from time to time and we could not verify the date of the most recent amendment, nor open the official schedule. Confirm your sector with the Department of Industry before committing. Note also that technology transfer may still be approved in negative-list sectors where the industry is established with Nepali investment.

Visas

A business visa is available for foreign investors and their families. A residential visa is reported where a single investment of USD 1 million or more is made, covering the investor, an authorised representative and family. Nepal tightened business-visa rules in late 2022 to curb misuse, so expect the documentation to be taken seriously.

Frequently Asked Questions

What is the minimum foreign investment in Nepal?

NPR 20,000,000 — two crore — per foreign investor, in place since November 2022 and current for FY 2083/84.

Is there an exemption for IT?

Yes. A listed set of IT industries is exempt from the minimum threshold entirely.

What is the automatic route?

Registration without prior approval in 102 listed sectors. The previous Rs 50 crore ceiling on it was abolished in January 2026.

Who approves foreign investment?

The Department of Industry below NPR 6 billion; Investment Board Nepal at and above that, or for energy projects of 200 MW or more.

Can I repatriate profits?

Yes. Commercial banks can now approve repatriation directly within 15 working days on a complete application, though central-bank approval is still needed to repatriate to a country other than the investment source.

Which sectors are closed?

Primary agriculture, small and cottage industries, personal services, retail, remittance, travel and trekking services, mass media in the national language, and several professional consultancies, among others.

How long does registration take?

Not published reliably. A three-month end-to-end target was announced in the FY 2083/84 budget but we could not verify implementation.

Can I get a residential visa?

Reported for a single investment of USD 1 million or more, covering the investor, a representative and family.

Sources

Cabinet decision of October 2022, Gazette-notified, setting the minimum foreign investment at NPR 20 million.
Ministry notice of 2080/06/15 BS exempting listed IT industries from the minimum threshold.
Reporting on the Cabinet decision of 22 January 2026 expanding the automatic route to 102 sectors and abolishing its ceiling.
Foreign Investment and Technology Transfer Act 2075 and its negative-list schedule, as described in published legal guidance.
Reporting on the amendment to Nepal Rastra Bank’s foreign investment and foreign loan management bylaws.

Foreign Investment in Nepal: Threshold, Automatic Route and Repatriation