S & F CONSULTING FIRM LIMITED is an international business consultancy firm. It offers lower cost & high quality service for the clients.
Contact information:
Kathmandu, Nepal
Bangladesh
Email: contact@sfconsultingbd.com
Mobile: +880 01790220729 or, +880 01790220728
Corporate Office, Dhaka, Bangladesh
Service area:
- Foreign Company registration (Branch/ Liason/Virtual office, Joint Venture company, 100% owned share company)
- Legal issue
- Income Tax
- Accounts Audit
- Company Secretarial
We are all Countries of Asia
Cambodia, China, Georgia, Hong Kong, India, Indonesia, Iran, Iraq, Israel, Japan, Jordan, Kazakhstan, Korea, North, Korea, South, Kuwait, Kyrgyzstan, Laos, Lebanon, Malaysia, Maldives, Mongolia, Myanmar, Nepal, Oman, Pakistan, Philippines, Qatar, Russia, Saudi Arabia, Singapore, Sri Lanka, Syria, Taiwan, Tajikistan, Thailand, Turkey, Turkmenistan, United Arab Emirates, Uzbekistan, Vietnam, Yemen
Foreign investors are permitted to own up to 100% equity share in any industries except the following:
1. Cottage industries (except industries using electricity more than 5 kW)
2. Personal service businesses (e.g. hair cutting, beauty slaon, tailoring, driving training, etc.)
3. Arms and ammunition industries
4. Gunpowder and explosives
5. Industries related to radio-active materials
6. Real estate business (excluding construction industries)
7. Film industries (national languages and other recognized languages of Nepal)
8. Security printing
9. Bank notes and coins
10. Retail business (excluding international chain retail businesses with business in at least two countries)
11. Tobacco (excluding more than 90% exportable)
12. Internal courier service
13. Atomic energy
14. Poultry
15. Fisheries
16. Bee keeping
17. Consultancy services (e.g. management, accounting, engineering, legal services); (Maximum of 51% FI is allowed)
18. Processing of food grains on rent
19. Local catering Services
20. Rural tourism
Entry Conditions on Investment
FITTA 1992 allows foreigners to invest only in private limited companies and in public limited companies registered with the Company Register Office (CRO). They are not allowed to invest in proprietorship or partnership firms.
"Private Limited Company" means a company which by its articles:
1. Limits the number of its shareholders from 1 to 50, excluding persons who are in the employment of the company, and
2. Prohibits any invitation to the public to subscribe in its shares.
"Public Limited Company" means a company that:
1. Has a minimum number of 7 shareholders (there is no maximum limit), and
2. Offers shares and debentures to the public through a prospectus which complies with the requirements of the Companies Act 2006 and Securities Act 2007.
FDI Approval process of Nepal
Present FDI Approval process
· Once the applicant submits the application with required documentation at the registration unit, it goes to the Director General who then forwards it to the FDI Director.
· The documents are assessed by the officers and staff at the FDI section.
· The application is presented in the FDI approval committee.
· Copies of the project reports must be sent to the License Director and Technical Director prior to the meeting.
· The members of the committee study the documents, discuss it objectively, and express their concerns, if any.
· Even if there are concerns expressed or other documents to be received, the applications are generally recommended for final approval with the condition that the concerns are addressed and the documents received.
· Once these conditions are fulfilled, the application is sent to the Director General for final approval. It takes 5-10 days for FDI approval, from the application date.
FDI Approval Procedure
After obtaining approval for foreign investment, the industry is required to apply for registration of industry at the DOI within 35 days. If the registration cannot be done within the stipulated time, the investor will have to apply for an extension of the validity period.
Note: If the capital investment is more than NRs. 10 billion, the Investment Board can directly deal with the investor, and the procedure will be followed accordingly.
Foreign Equity Investment in a New Industry
Documents required:
| ||
SN
|
Document
|
No. of Copies
|
1
|
Project Report
|
3
|
2
|
Joint Venture Agreement (JVA), in case of more than one investor
|
3
|
3
|
Citizenship certificate of local party or Certificate of Incorporation, including Memorandum of Association and Articles of Association if the local party is a company
|
1
|
4
|
Copy of passport of foreign party or Certificate of Incorporation, including Memorandum of Association and Articles of Association if the party is a company
|
1
|
5
|
Bio-data / Company profile of the foreign party
|
1
|
6
|
Financial Credibility Certificate (FCC) of the Foreign Investor provided by a home country bank or domiciled country bank
|
1
|
7
|
Authority letter from the concerned companies or individuals to carry out any necessary work on their behalf, if applicable
| |
Deposits and Fees
The fees need to be deposited at the time of Foreign Investment Approval, and are refundable after the operation of industry.
(Amount in Nepalese Rupees)
Range of Fixed Asset
|
Deposit
|
Fixed assets less than or equal to 2,500,000
|
4,000
|
2,500,000 less than (Fixed assets) less than or equal to 5,000,000
|
7,000
|
5,000,000 less than (Fixed assets) less than or equal to 10,000,000
|
10,000
|
10,000,000 less than Fixed assets
|
20,000
|
The amount shall be deposited at the Nepal Rastra Bank Account number SA.A. 131232
The non-refundable fees for the Company Registration:
Range of Authorized Capital
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Fee
|
500,000 less than (Authorized Capital) less than or equal to 2,500,000
|
9,500
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2,500,000 less than (Authorized Capital) less than or equal to 10,000,000
|
16,000
|
10,000,000 less than (Authorized Capital) less than or equal to 20,000,000
|
19,000
|
Similarly, an additional fee will be calculated at the rate of NPR 30 per NPR 100,000 of authorized capital.
Industries Permissible for Foreign Investment
Industry Category
|
Maximum FDI Permissible
|
Name of the competent authority (Regulator)
|
Relevant Acts & Policies
|
Remarks
|
Manufacturing
|
100%
|
Department of Industry
|
Industrial Enterprises Act, 1992
|
No additional procedures required except for certain industries which required special permission
|
Financial Services/Banks and Finance Companies and Branch Office of a Foreign Bank
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(20 to 85)%
|
Nepal Rastra Bank
|
Nepal Rastra Bank Act
Foreign Investment and Technology Transfer Act (FITTA)
Foreign Exchange Regulation Act (FERA)
|
Approval of Nepal Rastra Bank required thereafter, registration of the company is to be done and application filed for license to operate a bank, or financial institution
|
Airline Industry
|
(49 to 95)%
|
Civil Aviation Authority of Nepal
|
The Aviation Policy 2063 (2006)
Civil Aviation Act, 2053, Civil Aviation Rules, 2052 (1996)
|
FDI is permissible in domestic airlines, international airlines, flying schools and repair and maintenance work
|
Telecommunications
|
80%
|
Nepal Telecommunication Authority, Ministry of Information and Communication
|
Telecommunication Act
|
Approval of Nepal Telecommunication Authority is required to operate services and obtain license prior to operation
|
Roads, Ropeways, Cable car
|
100%
|
Transport Management Office
|
-
|
-
|
Media & Advertising – TV, Radio and Newsprint
|
100%
|
Ministry of Information and Communication
|
The Nepal Broadcasting Regulation, 2052 (1995)
National Broadcasting Act 2049 (1993)
|
The MOCI and NTA provides license for establishing media and broadcasting business in Nepal
|
Pharmaceutical & Chemical Industries
|
100%
|
Department of Health Services
|
Industrial Enterprises Act Drug Act
|
Approval from the Department of Drug Administration for setting up the industry, manufacturing and selling the drug is required
|
Textile and Garment
|
100%
|
Department of Industry
|
Industrial Enterprises Act
|
No specific requirements
|
Agriculture and Dairy
|
100%
|
Ministry of Agriculture and Co-operatives
|
-
|
No specific requirements
|
Consultancy and Management Services
|
51%
|
No Specific
|
Foreign Investment and Technology Transfer Act (FITTA)
|
Accountancy, Engineering, Legal & Management Services not allowed
|
Mining
|
100%
|
Department of Mines
|
Department of mines and Geology (Department) Act
Mines and Minerals Act, 2050 (1993)
Mines and Minerals Regulations, 2056 (1999)
|
License from the Department of Mines has to be obtained for mining activities in Nepal
|
Hydro-Power Generation
|
100%
|
Department of Electricity Development
|
Electricity Act
Electricity Rules
|
Approval from the DOED is required prior to operation of the industry
|
Power Trade
|
-
|
Department of Electricity Development
|
Electricity Act
Electricity Rules
|
Export of power to India is permitted for companies generating electricity
|
Transmission Lines
|
100%
|
Department of Electricity Development
|
Electricity Act
Electricity Rules
|
-
|
Hotels, Resorts & Restaurant
|
100%
|
Ministry of Tourism
|
Tourism Policy, Tourism Act
|
Approval from the Department of Tourism required for operating restaurant, hotels, resorts
|
IT & IT enabled (BPO, KPO)
|
100%
|
Department of Science and Technology
|
IT Act
|
No specific requirements
|
Vocational, Educational Trainingand Coaching
|
100%
|
No specific
|
Foreign Investment and Technology Transfer Act
|
Only Skill Training and Language allowed
|
Hospitals & other Medical Services
|
100%
|
Ministry of Health & Population
|
Nepal Health Professional Act,
Nepal Medical Council
|
Approval from the Ministry of Health is required for establishing hospitals and providing medical services
|
Recreational Health Centers
|
100%
|
Ministry of Health & Population
|
-
|
-
|
Solid Waste Disposal & Management
|
100%
|
Ministry of Environment, Science and Technology
|
Environment Protection Act
|
-
|
Film Industry
|
100%
|
Cinema Board of Nepal
|
Motion picture (Production, Exhibition and Distribution) Act 2026 (1969) and Rules
|
Film produced in the language if the nation not allowed (FITTA, 1992)
|
Cargo Industry
|
100%
|
No specific
|
-
|
Domestic Cargo not permitted under FDI
|
Medical Education
|
100%
|
Ministry of Education
|
MoHP’s Directive on Establishment, Operation, Standards and Infrastructure of Private and Non-governmental Health Institution, 2061
|
Affiliation to a University has to be entered into and approval from the Ministry of Education required
|
Engineering Education
|
100%
|
Ministry of Education
|
Technical Education Policy of Ministry of Education
|
Approval is granted under the Technical Education Policy of Ministry of Education
|
Management Education
|
100%
| |||
Insurance & Re-insurance
|
JV Company Branch Office
|
Insurance Board
|
Insurance Act and related directives
|
Approval from the Insurance Board has to be obtained prior to commencement of business in Nepal
|
Construction
|
100%
|
No Specific
|
Local Self Governance Act
|
Approval from the Department of Road, Transport and Physical Planning required
|
Thermal & Alternative/ Renewable energy
|
100%
|
Ministry of Energy
|
Electricity Act
|
Allowed only in Energy Generation
|
Source : Nepal-India Chamber of Commerce and Industry – Doing Business in Nepal (A Guide for Indian Investors)
Email: contact@sfconsultingbd.com
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