Non-resident Nepalis (NRNs) can invest in Nepal, and many already do. The investment takes place through the same foreign investment framework that applies to other overseas investors, based on the Foreign Investment and Technology Transfer Act (FITTA), with certain concessions for the diaspora. If you hold non-resident Nepali (NRN) status and are considering a venture back home, the structure you choose depends on your sector, your budget and whether you want an active business or a passive shareholding.
Can an NRN invest in Nepal?
Yes. Under FITTA and the related investment rules, non-resident Nepalis are treated as permitted foreign investors, and the investment is routed through the normal approvals: sector eligibility, foreign investment approval from the Department of Industry, and company registration with the Office of the Company Registrar. In some cases the NRN route offers a lower entry threshold than the general foreign investment minimums, so confirming the current policy before structuring the investment matters.
Types of investment available
- New company in an eligible sector: the most common route, usually a private limited company with the NRN as shareholder.
- Investment in an existing company: by subscribing to new shares, subject to sector limits and the company's approval.
- Listed securities: portfolio investment in shares listed on the Nepal Stock Exchange, which follows separate rules for non-residents.
- Branch or joint venture: where the NRN invests alongside Nepali or other partners in a joint venture company.
Minimum investment and sector eligibility
The general minimum foreign investment threshold in Nepal is currently NPR 20 million, and specific sectors carry their own limits or are restricted to Nepali citizens entirely. Sector eligibility must be verified before money is committed: energy, tourism, IT and manufacturing are broadly open, while some service and retail activities are reserved. Technology-based investments in certain cases benefit from lower or waived thresholds.
The incorporation process for NRNs
- Confirm sector eligibility and the applicable minimum investment for an NRN investor.
- Submit the foreign investment application to the Department of Industry and obtain approval.
- Reserve the company name and prepare the memorandum and articles of association.
- Incorporate with the Office of the Company Registrar and obtain the certificate.
- Register for PAN and, where applicable, VAT.
- Open a corporate bank account and route the investment through authorised banking channels.
Do you need to be present in Nepal?
Much of the process can be handled remotely. Documents such as the shareholder resolution and power of attorney can be notarised abroad and authenticated, and a local representative can complete filings on your behalf. In practice, being available for one visit at key points simplifies banking and approvals, but it is not always essential. A full walkthrough of the process is in our guide to setting up a company in Nepal.
Repatriation of profits and capital
Profits, dividends and, on winding up, capital can be repatriated subject to the approval of the Nepal Rastra Bank and the tax obligations of the company. The key to a smooth repatriation is keeping the initial investment properly documented: the funds should enter through the banking system and the equity should be reflected in the company's records. Where repatriation rules apply to non-residents, NRN investors should keep their status and documentation current. The Nepal Rastra Bank publishes the governing foreign exchange framework.
Common pitfalls
- Committing to a sector that is closed to foreign investment.
- Bringing funds into the country informally, which then blocks repatriation.
- Skipping the notarisation and authentication of documents, causing delays at the OCR or the bank.
- Confusing company registration with foreign investment approval, both of which are required.
Our team advises non-resident Nepalis on eligibility, structuring, approvals and compliance, and manages the full incorporation from abroad. See our NRN legal services or arrange a consultation.