Overview
Outward Investment Approval in Nepal, at a glance.
Outward Investment Approval overviewOutward investment — a Nepalese company investing in, or establishing operations abroad — requires approvals before Nepali rupees leave the country. Under the Foreign Exchange (Regulation) Act, 1962, the outflow of foreign exchange must be authorized by Nepal Rastra Bank, and under the FITTA/IEA framework a Nepalese industry that wants to branch out abroad needs the Department of Industry's permission (for example, to establish a branch office in another country) and must record the investment with the central bank. A Nepalese company may also provide technology or technology transfer to an entity abroad under the same framework.
The NRB's Foreign Investment and Foreign Loan Management Bylaw 2021 sets the practical limits. Under its recent amendments, Nepali information-technology companies may remit foreign exchange to invest abroad up to the lower of 50% of their average foreign-exchange earnings over the previous three fiscal years or USD 1 million; service-exporting companies can invest up to USD 20,000 without additional conditions. We prepare the approval papers — board resolution, investment plan, audited financials, tax clearance, the DOI permission, and the NRB foreign-exchange application — and manage the process from application to recording.
- Governing law
- FERA 2019 (1962) + NRB rules
- Authority
- Nepal Rastra Bank
- Route
- Banking channels only
- Compliance
- Annual status reporting
Why this is done from Nepal
Because this is where the system actually runs.
Why this service is delivered from NepalAUTHORITY
Nepal Rastra Bank is the only gate
Foreign exchange for outward investment is authorised by NRB under the Foreign Exchange (Regulation) Act — approvals, limits and reporting are all centralised in one regulator, and applications are shaped to its directions.
CHANNELS
Every rupee must move through banking channels
Outflows, annual status reporting and eventual repatriation of returns run through Nepal's banking system with NRB oversight. Compliance here is ongoing, not a one-off approval.
RULES
Limits move with NRB circulars
Thresholds for IT companies, service exporters and manufacturing investment are set and revised by NRB bylaws — the current figures are read from the circulars, not from memory.
Process
How it works, step by step.
ProcessOutward investment — a Nepalese company investing in, or establishing operations abroad — requires approvals before Nepali rupees leave the country. Under the Foreign Exchange (Regulation) Act, 1962, the outflow of foreign exchange must be authorized by Nepal Rastra Bank, and under the FITTA/IEA framework a Nepalese industry that wants to branch out abroad needs the Department of Industry's permission (for example, to establish a branch office in another country) and must record the investment with the central bank. A Nepalese company may also provide technology or technology transfer to an entity abroad under the same framework.
Confirm eligibility
Nepali companies and individuals can invest abroad within the Foreign Exchange (Regulation) Act, 2019 (1962) framework administered by Nepal Rastra Bank. Thresholds and eligible purposes (subsidiaries, JVs, service exports) are set by NRB directions.
Apply to Nepal Rastra Bank
The application covers the target entity, country, sector, investment amount, funding source and expected returns. Approval (and any foreign-exchange release) is granted case by case.
Structure and comply
The investment is made through banking channels; annual reporting of the offshore entity's status and returns keeps the approval in good standing.
- All outflows must route through banking channels with NRB oversight
- Annual status reporting on the offshore investment is required
- Frameworks are revised by NRB circulars — confirm current thresholds
The NRB's Foreign Investment and Foreign Loan Management Bylaw 2021 sets the practical limits. Under its recent amendments, Nepali information-technology companies may remit foreign exchange to invest abroad up to the lower of 50% of their average foreign-exchange earnings over the previous three fiscal years or USD 1 million; service-exporting companies can invest up to USD 20,000 without additional conditions. We prepare the approval papers — board resolution, investment plan, audited financials, tax clearance, the DOI permission, and the NRB foreign-exchange application — and manage the process from application to recording.
Documents & fees
What it takes, and what it costs.
Documents and feesWhat you need
| Document | Notes |
|---|---|
| Application letter | Purpose, amount, country and structure of the investment |
| Audited financials | Of the Nepali investor |
| Board resolution | Authorising the outward investment |
| Target entity documents | Registration/JV agreement of the offshore entity |
Typical documents for outward investment (NRB)
Fees
| Item | Amount |
|---|---|
| NRB application | Per current NRB fee schedule |
| Bank charges | Per transfer, by bank |
Charges
Outward investment thresholds are set by NRB circulars and revised regularly — confirm the current framework with Nepal Rastra Bank before applying.
Legal references
Where the rules come from.
Legal referencesGoverning law & official references
- Nepal Rastra Bank — foreign exchange regulations and circulars — Nepal Rastra Bank
FAQ
Outward Investment Approval in Nepal — common questions.
Frequently asked questionsCan a Nepali company invest abroad?
Yes — within the Foreign Exchange (Regulation) Act framework administered by Nepal Rastra Bank. Eligible purposes include subsidiaries, joint ventures and service-export operations, with limits and conditions set by NRB directions and revised by circular.
What approval is needed to invest overseas from Nepal?
Nepal Rastra Bank approval for the foreign-exchange outflow, covering the target entity, country, sector, amount, funding source and expected returns. All outflows must move through banking channels, and annual status reporting on the offshore investment keeps the approval in good standing.
Independent by design. IP Watch Nepal is independently operated and is not affiliated with, nor endorsed by, the Department of Industry or WIPO.