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HMG of Nepal has reorganised administrative arrangements to deal with foreign investment projects with a view to providing all services required by foreign investors under one roof. Accordingly the Department of Industry will be responsible for granting licences, facilities and other administrative services to all industries established with foreign investment and/or technology transfer arrangements. The status of the Department of Industry has been upgraded to facilitate quick and efficient disposal of application for investment.
As one window committee comprising the following is formed to provide quick and efficient service on infrastructural and other matters of primary concern to industrialists:
Director-General, Department of Industry (Convenor)
Joint Secretary, Ministry of Industry
Joint Secretary, Ministry of Finance
Joint Secretary, Mimistry of Commerce
Chief Controller, Nepal Rastra Bank,
This committee will attend to the needs of investors on supply of water, electricity and telecommunication facilities, imports of machinery, raw materials and spare parts, issues of import licences, release of foreign currency and all other facilities required by investors. The committee will have the authority to make binding decision on these matters.


Foreign investors wishing to invest in Nepal as 100 percent foreign owned enterprises or as joint venture investments are required to make an application to the Department of Industry on a prescribed form along with a detailed feasibility report. The application form calls for information on project highlights, total capital investment, sources of finance, plant capacity, location of project, machinery, equipment and raw material requirements and the specific contributions to be made by the foreign investors and local investor.
The Department of Industry will evaluate the project proposal and submit its recommendations to the Industrial Promotion Board for approval. The Industrial Promotion Board consists of the following

Ministry of Industry                            - Chairman
Assistant minister of Industry                  - Member
Member, National Planning Commission            - Member
Governor, Nepal Rastra Bank                     - Member
Secretary, Ministry of Industry                 - Member
Secretary, Minstry of Finance                   - Member
Secretary, Ministry of Commerce                 - Member
Representative, Federation of Nepalese
Chambers of Commerce and Industry               - Member
Two reputable persons from industrial,
commercial and tourism sectors                  - Member
Director-General, Department of Industry        - Member Secretary

The Board may invite other related persons as invitees for meetings.

This Board is the highest Government body responsible for the approval of the projects.
The Department of Industry will notify the applicant within 30 days from the receipt of the application the decision of the Industrial Promotion Board.
In granting permission for investment, the Department of Industry will specify the facilities and concessions the investor is entitled to.
After the issue of the licence, the applicant is required to apply for registration of his company with the Department of Industry within 35 days from the date of receipt of permission. Thereafter the company will be registered within 21 days.


The registration of a project in the Department of Industry involves the incorporation of a company under the Nepal Company Act. This would entail the filing of a Memorandum and the Article of Association of the company specifying the name and address of the company, objects of the company, amount of authorised capital, appointment of directors, convening of annual general meeting of shareholders, procedures of the company and so on.
A company may be incorporated as a private limited company or a public limited company. A private company is limited to 50 shareholders and its incorporation needs a subscription of capital by at least 3 investors. In the case of public company at least 7 investors should subscribe to its capital. After a public company is incorporated it must publish a prospectus with the approval of the Department of Industry, before issue of shares to the public.


A foreign investor or his authorised representative as well as their dependents will be granted a non-tourist visa for the period during which he maintains the investment in an industry established under foreign investment. A foreign investment who makes a lump sum investment of US$200,000 or its equivalent in convertible currency will be granted a permanent resident visa for himself and his dependents so long as he maintains his investment in the industry.

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Ministry of Industry
Foreign Investment Promotion Division
Singha Durbar
Kathmandu, Nepal
Tel: 216692
Fax: 220319
Tlx: 2610MOI NP

Copyright 1996 by Foreign Investment Promotion Division, Ministry of Industry, HMG

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