Foreign Direct Investment in Nepal
Frequently Asked Questions

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General FDI Information:

1. How is Foreign Investment defined in Nepal? FITTA, 2019 Sec 2 (j)

“Foreign investment” means the following investment made by a foreign investor in an industry or company:
(1) Foreign currency,
(2) Re-investment in an industry of dividends derived from foreign currency or shares,
(3) Lease finance made of certain assets of aircraft, ship, machinery and equipment, construction equipment or similar other equipment,
(4) Investment in venture capital fund,
(5) Investment in listed securities through secondary securities market,
(6) Investment by purchasing shares or assets of a company incorporated in Nepal,
(7) Investment received through the banking channel after issuing securities in a foreign capital market by an industry or company incorporated in Nepal,
(8) Investment made through technology transfer, or
(9) Investment maintained by establishing and expanding an industry in Nepal.

"Foreign investor" means any foreign individual, firm, company, Non-resident Nepali or foreign government or international agency or other corporate body of similar nature that makes foreign investment and also includes, in the case of a foreign investor that is an institutional foreign investor, the ultimate beneficiary of such an institution.