Minimum threshold for foreign investment in Nepal

The Government of Nepal has proposed to reduce the minimum threshold for foreign investment to NPR 20 million (Approx. USD 160,000) from the current NPR 50 million (Approx. USD 400,000) via the budget speech for the new fiscal year. This declaration is likely to be implemented from the upcoming fiscal year (starting from 17 July 2022) by way of notification of the Ministry of Commerce, Industries and Supplies issued pursuant to Foreign Investment and Technology Transfer Act, 2019.

The Government of Nepal intends to attract more foreign investment in small and medium enterprises through the implementation of this declaration. The declaration is being hailed as a positive step of the Government to promote foreign direct investment and increase the capital flow into the country.