Publication of Notice Relating to Foreign Direct Investment Threshold and Classification of Investment Company under the Industrial Enterprises Act 2073 (2016)

29 May, 2019

[Notice published by the Ministry of Industry, Commerce and Supply on 2076/02/15 (May 29, 2019) - Nepal Gazette, Volume 69, Number 8]

Ministry of Industry, Commerce and Supply, the Government of Nepal by virtue of the power conferred by Section 3(3) of Foreign Investment and Technology Transfer Act 2075 (2019) has determined the threshold amount for foreign direct investment for each foreign investor to be NPR 50,000,000 (Fifty Million Nepali Rupees). Previously the threshold amount for foreign direct investment per foreign inventor was NPR 5,000,000 (Five Million Nepali Rupees).

Hence, now a foreign investor seeking to invest in Nepal must invest NPR 50,000,000 in each industrial activity/unit.
Ministry of Industry, Commerce and Supply, the Government of Nepal by virtue of the power conferred by Section 53 of the Industrial Enterprises Act 2073 (2016) ("IEA") has included "Investment Company" in Schedule 8 of the IEA under the category of "Service Oriented Industry".

As such, foreign investment in an Investment Company is now been permitted.