Legal Market Overview
Nepal is a sovereign land-locked country that is seeking to develop its potential as a business hub due to its strategic proximity to China and India. It is attempting to attract foreign investors with various initiatives.
Foreign investors are allowed 100% ownership of a company in many sectors and the repatriation of capital and profits are allowed by law. There is enormous potential in tourism, hydro-power, agriculture and mining with an abundance of natural resources.
After a turbulent few years for the country now due to increased stability, and a raft of reforms and initiatives including the Nepal Investment Summit in 2017, foreign direct investment in Nepal is on the rise again. The government is investing more in infrastructure and has also started some long-overdue policy reforms. These reforms include new labour laws, the creation of a Special Economic Zone Act as well as the Agribusiness Promotion Bill. Significantly for foreign investors, other key developments are the Foreign Investment Bill and the amended Companies Act.
There are some first-rate national law firms that can advise on the full range of matters for international entities seeking to do business in Nepal. While there remain considerable challenges to doing business in Nepal but there are potentially plenty of investment opportunities there, too.