Frequently Asked

Questions

How can I determine whether CLA is right law firm for me or not?

CLA is a right place to be at for legal matters. Our firm offers first 30 minutes consultations free of cost where we will review your case and advise on the legal options available to you. You can contact us to schedule your case evaluation by calling us or through email.

What is the minimum investment amount for a foreign person or entity to invest in Nepal? Does the government requires this amount to be invested in the beginning in one go?

The minimum amount set by the government is NPR 50 million (approx. USD 450,000). It is not necessary to bring this investment at once. Investor shall be required to submit a ‘time-schedule’ of investment at the time of applying for foreign investment. However, the government can require the whole investment to be brought within certain period of time.

As a foreigner, what kind of approvals is required to conduct business or to set up a company in Nepal?

Prior to making investment in Nepal, a foreign person or entity shall have to obtain ‘foreign investment approval’ from the Ministry of Industry or Investment Board (subject to the investment capital). Another approval is from the Central Bank of Nepal (Nepal Rastra Bank). 

I don’t want to invest NPR 50 million. Are there any other alternatives for me to register business?

Registration of foreign company branch in Nepal could be another alternative for your case. As per the provisions of the Companies Act, 2006, a foreign company can register its branch by fulfilling the due process of law.

I am an Indian national. Do I have to get any approval or permit to work in Nepal?

Formal process of work permit is not required for Indian national. Indian national can obtain PAN in Nepal by obtaining a recommendation from the Indian Embassy in Kathmandu.

What are the applicable tax rates in Nepal?

Corporate tax @ 25%
Dividend tax @ 5%
Capital gains @ 10%
Windfall gains tax @ 25%
VAT @ 13%

How can I get business visa in Nepal?

Business visas are issued to foreigners who own business, or is a director/shareholder of a company in Nepal. A recommendation is required from the Ministry to be able to get a business visa.

I am a foreigner. How can I legally work in Nepal?

As per the Labour laws, a foreigner must obtain work permit before working in Nepal. To process for work permit, a Nepali host company has to hire a foreigner as an employee and sign employment contract. Only companies that fulfill all the legal requirements can hire foreigners and get them work permit.

I am an Indian national. Can I register a retail business/shop in Nepal?

No. Only Nepalese citizens are permitted to own retail shops and businesses in Nepal.

Can a foreigner establish a trading (import and export) company in Nepal?

No. Foreign Investment and Technology Transfer Act, 2019 has prohibited foreigners to register trading companies.

How long does it take to register a company?

Normally it takes about 3 to 5 days.

Still have questions?

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