Why to Invest in Nepal?

Why Invest in Nepal? 

In 2015, the country adopted a new constitution that embraces Nepal as a multiparty democratic federal republic with the private sector-led liberal economy. The government is committed to the promotion of foreign investment, has enacted and amended various investment related and sector-specific laws to provide a unique opportunity for FDI in Nepal. Although Nepal is currently classified as an LDC by the United Nations, its goal is to transition to a middle-income country by 2030.

There are multiple reasons which may encourage you for investment, Here we mention some collected from Nepal`s FDI government portal,

Strategic location and geographic
advantages :

• Strategically located between two large and rapidly
growing economies – China and India – with easy access
to markets of more than 2.7 billion people
• The topography and abundant water resources give
rise to vast untapped hydropower potential
• Contains the Himalayas, which is the highest mountain
the range on Earth, with 8 of the world’s 10 highest peaks,
combined with unique cultural heritage, creating potential
for tourism
• Incredibly rich biodiversity, creating potential in agriculture
and medicinal and aromatic plant research

Market Access

• Duty-free and open border access to India
• Zero tariff entry facility for over 8000 products to China
• Enjoys various duty and tax-free arrangements in the
region as a Member of SAARC, and BIMSTEC Free
Trade Agreement
• Member of MIGA of the World Bank Group
• Member of WTO
• Duty-free, quota-free market access to European Union
under EBA arrangements
• Duty-free US market access for 77 items which also
include garment products for 10 years (starting from


Ease of doing business

Ranked 3rd after Indian and Bhutan among South Asian
countries in the ‘Ease of Doing Business Report 2018’ by
the World Bank Group
• Foreign investors are allowed 100% ownership of a company
in almost all sectors
• Repatriation of capital and profits to the investor’s home
country is allowed
• Importance of the private sector recognized by the Constitution
of Nepal (2015)
• Arbitration and dispute resolution by an independent judiciary.
• Various bilateral investment protection and double tax
avoidance arrangements are in place and such agreements
are expected to increase significantly in the year
– BIPPA signed with Finland, India, Germany, Mauritius,
The United Kingdom, and France
– DTAA signed with Austria, China, India, Korea,
Mauritius, Norway, Pakistan, Qatar, Sri Lanka and


The large pool of capable workers

• 57.87% of Nepal’s population represents the working age
group (15-59 years)
• Relatively low cost of labour; minimum monthly wage
(except for tea enterprises) being NPR 13,450 (approx.
USD 122) as of July 2018
• Large English speaking population, especially in the
major cities including the capital, Kathmandu
• High participation of women in the workforce 


If you are looking local partner to start a business in Nepal or looking projects to invest in Nepal, Our country partner AAVA GROUP Pvt Ltd facilitate as Local Partner in PPP Model Project, Private, Joint venture Project in Nepal and KAi initiative support as Venture Development Partner.


Reference: FDI, Portal 

Ministry of Finance & Planning, Government of Nepal

Ease of Doing Business. 

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