Foreign investors who receive Foreign Direct Investment (FDI) approval in Nepal must secure a valid Business Visa to legally reside and operate their business in the country. The Business Visa after FDI approval in Nepal is a specific immigration category that allows foreign nationals to live, work, and manage their investment within Nepal. Understanding the legal process, documentation, and regulatory requirements is essential for every foreign investor planning to set up or expand operations in Nepal.
What Is FDI Approval in Nepal?
Foreign Direct Investment (FDI) in Nepal is regulated under the Foreign Investment and Technology Transfer Act, 2019 (FITTA 2019). This Act replaced the earlier Foreign Investment and Technology Transfer Act, 1992, and provides the primary legal framework for foreign investment in Nepal.
Under FITTA 2019, any foreign national or foreign company wishing to invest in Nepal must obtain prior approval from the Department of Industry (DOI) or the Investment Board Nepal (IBN), depending on the investment amount and sector.
- Investments below NPR 6 billion are processed through the Department of Industry (DOI)
- Investments above NPR 6 billion or in priority sectors are processed through the Investment Board Nepal (IBN)
FDI approval is granted after the submission of a formal application, business plan, and supporting documents. Once the investment is approved and registered, the investor becomes eligible to apply for a Business Visa under Nepal’s immigration laws.
The official portal for FDI registration and investment approval is managed by the Department of Industry: https://doind.gov.np
What Is a Business Visa in Nepal?
A Business Visa in Nepal is a non-tourist visa category issued to foreign nationals who have a legitimate business interest in Nepal. Under the Immigration Act, 1992 (2049 BS) and the Immigration Regulation, 1994 (2051 BS), the Department of Immigration Nepal has the authority to issue Business Visas to qualified foreign nationals.
The Business Visa is commonly referred to as a Non-Tourist Visa in Nepal’s immigration framework. For foreign investors with FDI approval, this visa category is the most appropriate legal pathway to reside and conduct business in Nepal.
Business Visa categories include:
- Business Visa for FDI investors (after receiving FDI registration certificate)
- Business Visa for representatives of foreign companies operating in Nepal
- Business Visa for joint venture partners in Nepalese companies
The Department of Immigration Nepal manages all visa-related processes: https://www.immigration.gov.np
Legal Basis for Business Visa After FDI Approval
The legal connection between FDI approval and Business Visa issuance in Nepal is established through several laws and regulations:
- Foreign Investment and Technology Transfer Act, 2019 (FITTA 2019) – Governs FDI registration and approval
- Immigration Act, 1992 (2049 BS) – Provides the legal authority for issuing visas in Nepal
- Immigration Regulation, 1994 (2051 BS) – Details the procedural requirements for visa applications
- Companies Act, 2006 (2063 BS) – Governs company registration in Nepal
- Industrial Enterprises Act, 2020 (2076 BS) – Regulates industrial operations in Nepal
Under Section 10 of the Immigration Act, 1992, the Department of Immigration can issue a Non-Tourist Visa (Business Visa) to any foreign national who demonstrates lawful business operations in Nepal, including those with valid FDI registration.
Eligibility for Business Visa After FDI Approval
Not every foreign national automatically qualifies for a Business Visa after receiving FDI approval. The following conditions must be met:
- The foreign investor must have a valid FDI registration certificate from DOI or IBN
- The invested company must be registered with the Office of the Company Registrar (OCR)
- The investor must have a minimum investment amount as prescribed under FITTA 2019
- The investor must not have any criminal record or immigration violations in Nepal
- The investor must hold a valid foreign passport with sufficient validity
Under FITTA 2019, the minimum FDI threshold for most sectors is NPR 20 million (approximately USD 150,000). Investors who meet this threshold and have completed company registration are eligible to apply for a Business Visa.
Step-by-Step Process to Get Business Visa After FDI Approval
The process to obtain a Business Visa in Nepal after receiving FDI approval follows these steps:
Step 1: Complete FDI Registration
- Submit FDI application to DOI or IBN
- Receive Foreign Investment Approval Certificate
- Complete company registration at the Office of the Company Registrar
Step 2: Obtain Industry Registration (if applicable)
- Register the industry under the Industrial Enterprises Act, 2020
- Obtain the Industry Registration Certificate from DOI
Step 3: PAN/VAT Registration
- Register the company with the Inland Revenue Department (IRD)
- Obtain Permanent Account Number (PAN) and VAT registration certificate
Step 4: Prepare Business Visa Application Documents
- Collect all required documents (listed below)
- Prepare a covering letter from the registered company
Step 5: Submit Application to Department of Immigration
- Submit completed application form at the Department of Immigration, Maitighar, Kathmandu
- Pay the applicable Business Visa fee
- Wait for processing and approval
Step 6: Receive Business Visa
- Collect the Business Visa sticker or endorsement on the passport
- Register with the local ward office if staying long-term
Documents Required for Business Visa After FDI Approval
The following documents are required when applying for a Business Visa after FDI approval in Nepal:
- Valid passport (with minimum 6 months validity)
- Completed visa application form (available at the Department of Immigration)
- FDI Approval Certificate issued by DOI or IBN
- Company Registration Certificate from the Office of the Company Registrar
- Memorandum and Articles of Association of the registered company
- PAN/VAT Registration Certificate from the Inland Revenue Department
- Tax Clearance Certificate (for renewal applications)
- Shareholding document showing the applicant’s ownership percentage
- Bank statement or proof of fund transfer to Nepal
- Recommendation letter from the concerned ministry (in some cases)
- Passport-size photographs (recent, white background)
- Previous visa details if previously held a visa in Nepal
Business Visa Duration and Fees in Nepal
The Department of Immigration Nepal issues Business Visas for varying durations depending on the investment size and business requirements.
Visa DurationApplicable Fee (USD)RemarksSingle Entry (Up to 30 days)USD 30Short-term business visitMultiple Entry (3 months)USD 50For initial FDI investorsMultiple Entry (6 months)USD 75For active investors with registered companiesMultiple Entry (1 year)USD 100For established FDI operationsMultiple Entry (5 years)USD 200For long-term investors with significant FDI
Note: Fees are subject to change. Please confirm current fees at the Department of Immigration or on the official website.
The 5-year Multiple Entry Business Visa is particularly relevant for significant FDI investors and is aligned with the Nepal government’s policy to attract long-term foreign investment under FITTA 2019.
Visa on Arrival vs. Regular Business Visa for FDI Investors
FeatureVisa on ArrivalRegular Business VisaPurposeInitial entry and explorationOngoing business operationDuration15-90 daysUp to 5 years (multiple entry)Work AuthorizationNot permittedPermitted for investorsFDI RequirementNot requiredRequiredApplication LocationTribhuvan International AirportDepartment of ImmigrationRenewableLimited extensionsRenewable annually
Foreign investors should not rely on tourist or visa-on-arrival categories for conducting business activities in Nepal. Using an incorrect visa category can lead to deportation and immigration penalties under the Immigration Act, 1992.
Business Visa Renewal Process for FDI Investors
Business Visas for FDI investors in Nepal must be renewed periodically. The renewal process requires proof of continued investment and business operation.
Documents needed for Business Visa renewal:
- Original passport with current Business Visa
- Updated Tax Clearance Certificate from IRD
- Renewed company registration certificate (annual renewal at OCR)
- Audit report of the company for the previous fiscal year
- Proof of continued investment (bank statements, financial records)
- Completed renewal application form
- Payment of applicable renewal fees
The renewal application must be submitted before the expiry of the current visa. Overstaying a visa in Nepal attracts a daily fine as prescribed under the Immigration Regulation, 1994.
Work Permit Requirement for FDI Investors
Foreign nationals holding a Business Visa after FDI approval may also need to obtain a Work Permit if they are actively working within the company they have invested in. Work Permits in Nepal are regulated under the Foreign Investment and Technology Transfer Act, 2019 and the Labour Act, 2017.
Key points:
- Work permits are issued by the Department of Labour and Occupational Safety
- FDI investors in executive positions generally require a work permit
- The Business Visa and Work Permit are separate documents
- A Business Visa alone does not grant work authorization in Nepal
The Department of Labour and Occupational Safety manages work permit applications: https://www.dol.gov.np
Common Challenges in Getting Business Visa After FDI Approval
Foreign investors often face several challenges during the Business Visa application process:
- Incomplete FDI registration – If the company registration is pending, the visa application is rejected
- Incorrect visa category application – Applying under tourist visa instead of business visa
- Failure to meet minimum investment threshold – Investments below NPR 20 million under FITTA 2019 may not qualify
- Missing tax compliance documents – Lack of PAN registration or tax clearance
- Sector restrictions – FITTA 2019 restricts FDI in certain sectors (cottage industries, personal service businesses, retail trade, etc.)
- Delayed government processing – Interdepartmental coordination between DOI, OCR, and Department of Immigration can take time
Restricted Sectors for FDI in Nepal
Under the Negative List provided in Schedule 1 of FITTA 2019, foreign investment is prohibited in the following sectors, which means no FDI approval (and consequently no Business Visa based on FDI) is possible in these areas:
- Cottage and small industries defined under the Industrial Enterprises Act
- Personal service businesses (hair salons, tailoring shops, etc.)
- Arms and ammunition industries
- Real estate businesses (except construction companies)
- Retail businesses (except those with government approval)
- Money lending (except banking and finance)
- Travel agencies (class C)
- Poultry farms, fisheries (small scale)
Investors in restricted sectors will not receive FDI approval and therefore cannot obtain a Business Visa based on FDI registration.
FAQs on Business Visa After FDI Approval in Nepal
Q1. Can a foreign investor stay in Nepal permanently after getting FDI approval?
No. FDI approval does not grant permanent residency. The investor must hold a valid Business Visa and renew it regularly. Permanent residency in Nepal requires a separate application under the Immigration Act, 1992.
Q2. What is the minimum investment amount required to get a Business Visa based on FDI in Nepal?
Under FITTA 2019, the minimum FDI threshold is NPR 20 million for most sectors. Meeting this threshold is a prerequisite for FDI approval and subsequent Business Visa eligibility.
Q3. How long does it take to process a Business Visa after FDI approval in Nepal?
The Department of Immigration generally processes Business Visa applications within 3 to 7 working days after the submission of complete documents, provided all regulatory approvals are in place.
Q4. Can an FDI investor’s family members get a visa based on the investor’s Business Visa?
Yes. Family members (spouse and children) of a Business Visa holder can apply for a Dependent Visa under the Immigration Regulation, 1994. They are not automatically granted the same visa.
Q5. Is a Work Permit the same as a Business Visa in Nepal?
No. A Business Visa and a Work Permit are different documents. The Business Visa permits the investor to stay in Nepal, while the Work Permit issued by the Department of Labour allows them to work within the company.
Q6. Can a foreign investor apply for a Business Visa from outside Nepal?
Yes. The investor can apply through the nearest Nepalese Embassy or Consulate abroad after obtaining FDI approval. They can also arrive on a Visa on Arrival and convert it to a Business Visa at the Department of Immigration in Kathmandu.
Conclusion
Obtaining a Business Visa after FDI approval in Nepal is a clearly defined legal process governed by FITTA 2019, the Immigration Act, 1992, and related regulations. Foreign investors must first complete FDI registration with DOI or IBN, register their company with OCR, and fulfill all tax compliance requirements before applying to the Department of Immigration. Proper compliance with Nepal’s immigration and investment laws ensures uninterrupted business operations and legal residency for foreign investors in Nepal.Add to Conversation
