Virtual Office Nepal (Lower cost)


S & F CONSULTING FIRM LIMITED is an international business consultancy firm. It offers lower cost & high quality service for the clients.
Contact information: 
 
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

CambodiaChinaGeorgia,  Hong KongIndiaIndonesiaIranIraq,  IsraelJapanJordanKazakhstanKorea, NorthKorea, SouthKuwaitKyrgyzstanLaosLebanonMalaysiaMaldivesMongoliaMyanmarNepalOmanPakistanPhilippinesQatarRussiaSaudi ArabiaSingaporeSri LankaSyriaTaiwanTajikistanThailandTurkeyTurkmenistanUnited Arab Emirates,  UzbekistanVietnamYemen  

 
 
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
Fee
500,000 less than (Authorized Capital) less than or equal to 2,500,000
9,500
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
(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.comImage

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