In today’s global market, the flow of foreign investment and technology across borders is a key driver of growth. Nepal has seen a steady rise in foreign direct investment (FDI) and inbound technology transfers, bringing in capital, expertise, and innovation across sectors. The Government of Nepal actively encourages FDI, but investors still face significant regulatory hurdles and compliance requirements. Multiple government agencies and layers of legislation – from the Department of Industry to the Investment Board of Nepal and Nepal Rastra Bank – impose rules on business entry, capital structuring, foreign exchange, and technology agreements. Navigating this landscape requires in-depth knowledge of local laws and bureaucracy.

Gandhi & Associates has extensive experience helping foreign investors establish and operate businesses in Nepal. We guide clients through the entire FDI process, including entity formation, joint venture structuring, obtaining approvals under the Foreign Investment and Technology Transfer Act, and registering technology licensing or technical collaboration agreements. Our team is adept at coordinating with the various regulatory authorities and managing the “one window” and multiple approval regimes. We also advise on ongoing compliance (such as reporting and remittance of dividends) and ultimately on exit strategies, ensuring that foreign investors can repatriate profits and capital in line with Nepali regulations. By providing strategic, jurisdiction-specific counsel, we enable smooth market entry and operation for international businesses in Nepal.

Representative Experience:

• Advised a European impact investor on its structured exit from a Nepali agribusiness venture in the coffee sector, including regulatory approvals for share transfer and repatriation of capital in coordination with a Netherlands-based development initiative;
• Advised the Nepali developer and franchisee of a Southeast Asian luxury hospitality group on land due diligence, investment approvals, and franchise negotiations for a resort acquisition in western Nepal;
• Assisted a Korean government-backed utility company in its acquisition of a controlling stake in a multi-hundred-megawatt hydropower project in western Nepal, advising on investment structuring, regulatory approvals, and coordination with cross-border lenders; and
• Advised a European impact investor on its structured exit from a Nepali agribusiness venture in the coffee sector, including regulatory approvals for share transfer and repatriation of capital in coordination with a Netherlands-based development initiative.