Yes, but foreign ownership is subject to Nepal's foreign-investment law and approval process. A foreign investor should not be treated in the same way as an ordinary domestic founder.
Applicable framework
Foreign investment is regulated principally through the Foreign Investment and Technology Transfer Act and the Industrial Enterprises Act. The Department of Industry administers foreign-investment approvals within its jurisdiction, with the Investment Board having jurisdiction over certain larger investments under applicable law.
Typical process
For a new foreign-invested industry, the process generally involves:
- obtaining foreign-investment approval;
- incorporating the company;
- completing tax registration;
- registering the industry;
- completing other sector-specific requirements.
OCR requires additional foreign-founder documentation, which can include investment approval, passport or foreign-company incorporation documents, corporate investment decisions, authorization and joint-venture documentation where applicable.
Restrictions
Not every business sector is open to foreign investment, and minimum investment, approval authority and sector restrictions can change. The current negative list and investment rules should be checked before incorporation.