Introduction to One Day FDI Approval in Nepal
One Day FDI Approval in Nepal refers to an expedited investment approval mechanism designed to facilitate fast-track foreign direct investment clearance within a shortened time frame, ideally within a single working day, depending on document completeness and sector eligibility. It is part of Nepal’s broader investment facilitation policy under the Foreign Investment and Technology Transfer Act, 2075 (2019) (FITTA).
The system is implemented through the Department of Industry Nepal, which acts as the central authority for foreign investment approval. The initiative aims to improve ease of doing business and attract foreign capital in competitive sectors such as IT, energy, tourism, and manufacturing.
However, approval within one day is conditional and applies only where documentation is complete, sector is eligible, and no inter-agency consultation is required.
Legal Framework Governing One Day FDI Approval in Nepal
The One Day FDI Approval system operates under Nepal’s foreign investment legal structure:
Foreign Investment and Technology Transfer Act, 2075 (2019)
This is the principal law governing foreign investment approval procedures, eligibility, and regulatory oversight.
Industrial Enterprises Act, 2076 (2020)
Defines investment classification and industrial registration requirements.
Companies Act, 2063 (2006)
All foreign investors must incorporate a company through the Office of Company Registrar.
Foreign Exchange Regulation
Capital inflow and repatriation are regulated by Nepal Rastra Bank.
These laws collectively govern the legal validity of fast-track FDI approval.
Concept of One Day FDI Approval
One Day FDI Approval is a procedural facilitation, not a separate legal category. It is an administrative commitment by the investment authority to process eligible FDI applications quickly.
Key features include:
- Single-day initial approval possibility
- Digitally supported document submission
- Pre-verified investment categories
- Streamlined inter-agency coordination
- Reduced bureaucratic delay
It is mainly applied for low-risk, standard investment structures.
Eligibility for One Day FDI Approval in Nepal
Not all investments qualify for one-day approval. Eligible categories generally include:
- IT and software development companies
- Consulting and service-based industries
- Small to medium manufacturing units
- Tourism-related businesses
- Renewable energy micro-projects
- Educational technology platforms
Eligibility depends on:
- Completeness of documents
- Clarity of business structure
- Compliance with FITTA, 2075 (2019)
- Absence of regulatory complications
Large-scale infrastructure projects typically do not qualify for one-day approval.
Authorities Involved in One Day FDI Approval
Several government bodies may participate in expedited approval:
- Department of Industry Nepal – Primary approval authority
- Office of Company Registrar – Company incorporation
- Nepal Rastra Bank – Foreign currency approval
- Inland Revenue Department – Tax registration
- Sector-specific ministries (if applicable)
Coordination between agencies determines approval speed.
Step-by-Step Process for One Day FDI Approval in Nepal
Step 1: Preparation of Documents
Investor prepares all required legal and financial documents in advance.
Step 2: Submission to Department of Industry
Application is submitted to the Department of Industry Nepal.
Step 3: Initial Screening
Authorities verify completeness of documents and eligibility.
Step 4: Fast-Track Evaluation
If eligible, the proposal enters expedited review.
Step 5: Approval Issuance
FDI approval letter is issued on the same day or within a very short timeframe.
Step 6: Post Approval Registration
Company registration is completed with the Office of Company Registrar.
Documents Required for One Day FDI Approval
Applicants must prepare:
- FDI application form
- Business proposal or feasibility report
- Passport or company incorporation certificate
- Board resolution (for corporate investors)
- Joint venture agreement (if applicable)
- Financial statements of investor
- Power of attorney
- Project summary document
- Proposed company details in Nepal
Incomplete documentation is the main reason for delay.
Investment Threshold for One Day FDI Approval
Under FITTA, 2075 (2019):
- Minimum FDI requirement is generally NPR 20 million
- Certain IT and service sectors may have flexible thresholds
- High-risk sectors may require additional scrutiny
Threshold compliance is mandatory for approval.
Role of Nepal Rastra Bank in Fast FDI Approval
The Nepal Rastra Bank ensures:
- Foreign currency inflow validation
- Banking channel compliance
- Capital repatriation rules
- Exchange rate regulation
Without NRB compliance, approval cannot be operationalized.
Role of Company Registrar in FDI Process
The Office of Company Registrar handles:
- Legal incorporation of company
- Issuance of registration certificate
- Maintenance of corporate records
- Compliance with Companies Act, 2063 (2006)
Company registration is mandatory after FDI approval.
Advantages of One Day FDI Approval System
The system offers several benefits:
- Faster market entry for investors
- Reduced administrative delays
- Improved investment climate
- Simplified procedural workflow
- Encouragement of foreign capital inflow
It supports Nepal’s economic modernization strategy.
Limitations of One Day FDI Approval
Despite its benefits, limitations exist:
- Not applicable to complex projects
- Requires complete documentation
- Depends on inter-agency coordination
- Not guaranteed in all cases
- Sector-based restrictions apply
Approval speed depends on compliance quality.
Legal Risks in Fast-Track FDI Approval
Potential legal issues include:
- Incomplete documentation leading to rejection
- Misclassification of investment sector
- Non-compliance with FITTA, 2075 (2019)
- Banking approval delays
- Tax registration issues
Proper legal structuring reduces risk.
Role of Lawyers in One Day FDI Approval
Legal professionals assist in:
- Drafting investment proposals
- Ensuring FITTA compliance
- Preparing incorporation documents
- Coordinating with government agencies
- Structuring joint ventures
Law firms such as Niti Partners and Associates provide structured legal support for expedited FDI approvals.
Advocates such as Sameep Khanal and Prabin Kumar Yadav represent professionals engaged in foreign investment law practice in Nepal.
Importance of One Day FDI Approval in Nepal
The system contributes to:
- Foreign investment attraction
- Economic growth
- Job creation
- Technology transfer
- Ease of doing business improvements
It supports Nepal’s long-term development goals.
Conclusion
One Day FDI Approval in Nepal is a fast-track investment facilitation mechanism under the Foreign Investment and Technology Transfer Act, 2075 (2019), implemented by the Department of Industry Nepal.
It allows eligible investors to receive rapid approval for foreign investment, subject to documentation and compliance requirements, while coordinating with the Office of Company Registrar and Nepal Rastra Bank.
Legal firms such as Niti Partners and Associates play a key role in ensuring smooth and compliant investment entry into Nepal.
📞 Contact for legal assistance: +977 97004949414
FAQs
1. What is One Day FDI Approval in Nepal?
It is a fast-track investment approval process that allows eligible foreign investors to receive FDI approval within a short time, subject to complete documentation and regulatory compliance.
2. Which authority grants FDI approval in Nepal?
The Department of Industry Nepal is the primary authority responsible for granting foreign investment approval.
3. Is company registration required after FDI approval?
Yes, investors must register their company with the Office of Company Registrar under the Companies Act, 2063 (2006).
4. Can all sectors get One Day FDI approval?
No, only selected sectors with simple compliance requirements are eligible for fast-track approval. Complex or regulated sectors require standard processing.
5. Is foreign currency approval required?
Yes, all foreign investment inflow must be approved and monitored by Nepal Rastra Bank under foreign exchange regulations.