Legal Market Overview
Nepal, one of fewer than 50 sovereign land-locked countries, has in recent years become a burgeoning market for IT and manufacturing companies interested in investment due to a relatively cheap labour market, highly qualified workers, and a low cost of land. Consequently, numerous multinational companies have been looking to invest in Nepal, most notably China and India, due to its close proximity to both countries.
With growing markets comes an increase in demand for power, hence why major hydropower projects have taken off in recent years, with securities backed by a number of prominent Chinese banks, as well as a diversification in the market into other tech sectors. Nepal’s natural resources and agriculture are also mainstays in the market.
Lawyers in the market anticipate that in 2021, the investment market, hospital sector, tourism, and tech sectors will slow down and potentially contract due to international clients putting a hold on key projects and potential downsizing of operations, although these concerns have yet to be seen, and may be mitigated by other market forces. One possibility that may convince foreign investors to stay is that foreign investors are allowed 100% ownership of Nepalese companies after acquisition.
Local law firms are each strong enough to advise on a full range of matters for international entities seeking to do business in Nepal. The biggest firms in the market are currently Neupane Law Associates, Pradhan & Associates, Sinha Verma Law Concern Nepal, Imperial Law Associates, and Pioneer Law Associates.