How to Invest in Nepal From Overseas: A Practical Guide

The short answer: how you can invest in Nepal depends first on who you are legally, and second on what you are investing in. A Nepali citizen living in London has different options from a British citizen of Nepali origin, and both have different options from a foreign investor with no Nepali connection.

This guide sets out the main routes, the rules that most often catch people out, and the checks worth making before you send money. It is general information, not legal or financial advice.

01Step 1: Work out which category you are in

Nepali citizens living abroad are, for most purposes, treated as Nepali citizens. They can generally buy land and property and invest in Nepali companies in the same way as residents.

Non-Resident Nepalis (NRNs) who hold foreign citizenship have a separate legal status. NRN rules allow some property ownership and investment, but with limits, including ceilings on residential land. Check the current rules for your situation with a Nepal-qualified lawyer.

Foreign nationals invest under Nepal's Foreign Investment and Technology Transfer Act, 2019 (FITTA). This route requires approval and is subject to sector restrictions and a minimum investment amount.

02Step 2: Check whether the sector is open

FITTA lists sectors closed to foreign investment. Real estate business (buying and selling property as a business, excluding the construction industry) is on that list. In practice this means a foreign national generally cannot invest in Nepal simply to own or trade land.

Hydropower, tourism and many industries are open to foreign investment and are actively promoted by the Government of Nepal.

03Step 3: Understand the thresholds and approvals

From the 2022/23 budget, the general minimum for foreign direct investment is NPR 20 million per project, with exceptions such as the information technology sector. Larger investments are approved by the Investment Board Nepal; most others by the Department of Industry.

These thresholds and procedures change. Before relying on any figure, confirm it with the Department of Industry, the Investment Board Nepal or a lawyer.

04Step 4: Do your own due diligence

Whatever the route, the checks are similar. Who legally owns the land or the company? Are the approvals in place, or only applied for? What structure will you hold your investment through, and what rights does it give you? How and when can you get your money out?

Ask for documents, not assurances. Have title records and company documents reviewed by a lawyer you appoint, not one supplied by the seller.

05Step 5: Plan for currency and time

If you earn in pounds, dollars or euros, the value of your investment will move with the Nepali rupee. Property and infrastructure projects in Nepal also tend to take longer than planned. Invest money you will not need for several years.

06How Ample fits in

Ample Associates presents opportunities in Nepal and supports investors through a staged process: explore, speak with the team, receive project information, carry out due diligence, and only then consider agreements. You can see the full process on our How We Work page, and current projects on the Investment Opportunities page.