One Stop FDI Approval Provision in Nepal

Are you searching for one stop FDI approval provision in Nepal? The Government of Nepal has established comprehensive single-window facilitation mechanisms to attract foreign direct investment through streamlined approval processes. This guide explains the One-Stop Service Centre (OSSC), fast-track approval systems, and coordinated government services that make Nepal's investment climate increasingly investor-friendly.

What is One Stop FDI Approval Provision in Nepal?

One stop FDI approval provision in Nepal refers to integrated government mechanisms designed to provide foreign investors with coordinated, efficient, and time-bound approval services through a single point of contact. The primary implementing body is the Investment Board Nepal (IBN), which operates the One-Stop Service Centre (OSSC) for large-scale investments, while the Department of Industry (DOI) handles automatic route approvals for standard FDI projects .

Furthermore, recent regulatory reforms have significantly enhanced these provisions, reducing approval timelines from months to days and eliminating redundant bureaucratic processes that previously discouraged foreign investment .

Why One Stop Approval Matters for Foreign Investors

Traditional multi-agency approval processes in Nepal often resulted in:

• Duplicated documentation requirements
• Conflicting instructions from different ministries
• Extended timelines averaging 6-12 months
• Unclear accountability for delays

The one stop FDI approval provision Nepal addresses these challenges through:

• Single point coordination for all government interactions
• Defined timelines with accountability mechanisms
• 14-agency coordination under IBN's OSSC
• Digital platforms for application tracking
• After-care services for operational compliance

Legal Framework for One Stop Investment Approval

Two-Tier One Stop System in Nepal

Nepal operates a dual-track single window FDI Nepal system based on investment size:

Tier 1: Department of Industry (DOI) - Automatic Route

For investments below NPR 6 billion in approved sectors :

Tier 2: Investment Board Nepal (IBN) - OSSC

For investments above NPR 6 billion or hydropower above 200 MW :

One Stop Service Centre (OSSC) Structure

IBN's OSSC coordinates with 14 key government agencies :

Step-by-Step One Stop FDI Approval Process

For DOI Route (Investments Below NPR 6 Billion)

Step 1: Online Application Submission

• Access DOI's online portal at fdi.gov.np or doind.gov.np
• Complete FDI application form with project details
• Upload required documents (company profile, financial statements, project proposal)
• Pay application fee (NPR 5,000 - 30,000 depending on investment size)

Step 2: Automatic Screening

• System verifies sector eligibility under automatic route
• Checks minimum investment threshold (NPR 20 million for foreign investors)
• Validates documentation completeness

Step 3: Inter-Agency Coordination (Internal)
DOI automatically coordinates with:

• OCR: Company name availability and registration
• IRD: PAN/VAT registration initiation
• NRB: Foreign exchange facility notification
• Local Government: Business operating license information

Step 4: Approval Issuance

• Approval letter issued within 7 working days if complete
• Includes FDI registration number
• Specifies capital injection schedule and conditions

Step 5: Post-Approval Services

• Assistance with company registration
• Coordination for tax registration
• NRB recording facilitation
• Operational license guidance

For IBN Route (Investments Above NPR 6 Billion)

Step 1: Initial Consultation

• Schedule meeting with IBN Investment Promotion Division
• Preliminary project assessment
• Eligibility confirmation
• Documentation guidance

Step 2: Formal Application
Submit comprehensive application to IBN with:

• Detailed project report
• Financial feasibility study
• Environmental impact assessment (if required)
• Company registration documents (if existing)
• Investor credentials and financial capacity proof

Step 3: OSSC Activation
Upon application acceptance:

• Dedicated OSSC officer assigned
• Focal persons from 14 agencies notified
• Inter-agency coordination initiated
• Timeline commitments established

Step 4: Parallel Processing
OSSC coordinates simultaneous processing:

• Environmental clearance (Forests Ministry)
• Land acquisition (Land Management Ministry)
• Utility connections (Infrastructure Ministry)
• Tax incentives (IRD)
• Foreign exchange (NRB)

Step 5: IBN Board Approval

• Project presentation to IBN Board (chaired by Prime Minister)
• Structured evaluation using PSAT tool
• Approval resolution within 15 working days

Step 6: Agreement Execution

• Negotiation of PDA (PPP) or PIA (private investment)
• Risk allocation and government facilitation terms
• Signing within 4-6 weeks of approval

Step 7: Implementation Support
OSSC provides ongoing facilitation:

• Regular progress monitoring
• Issue resolution with relevant agencies
• Compliance coordination
• After-care services

Fast Track Provisions Under One Stop System

7-Day Approval for Automatic Route

The fast track investment approval Nepal system guarantees:

• Application acknowledgment within 24 hours
• Sector eligibility verification within 2 days
• Approval issuance within 7 working days
• Immediate access to post-approval services

15-Day Approval for Large Projects

IBN commitment for large-scale investments:

• Complete evaluation within 15 working days
• Parallel agency consultations
• Single-board decision making
• No sequential departmental approvals required

One-Day Service for Specific Processes

Certain services have been further accelerated:

• Company name reservation: Same day (OCR)
• PAN registration: 2-3 working days (IRD)
• Inflow certificate: Same day (banks)
• Work permit processing: 7 working days (Immigration)

Digital Platforms Supporting One Stop Approval

Sector-Specific One Stop Provisions

Hydropower Projects

• Single-window at Department of Electricity Development
• Integrated PPA negotiation
• Environmental clearance coordination
• IBN facilitation for projects above 200 MW

Information Technology

• Exemption from minimum investment requirement
• Fast-track company registration
• Simplified work permit procedures
• Tax incentive automatic approval

Manufacturing

• Customs duty exemption automatic processing
• VAT exemption on capital goods
• Industrial estate allocation coordination
• Labour permit streamlined processing

Tourism

• NTB registration integration
• Land lease facilitation
• Heritage site access coordination
• Multiple entry visa facilitation

After-Care Services Under One Stop Provision

The one stop FDI approval provision Nepal extends beyond initial approval:

Recent Enhancements (2025-2026)

February 2026 Reforms

• Automatic route expanded to 102 sectors
• NPR 500 million ceiling removed for automatic approval
• Zero minimum investment for IT sector
• 100% foreign ownership permitted in most sectors

December 2025 NRB Reforms

• Prior approval eliminated for FDI equity inflows
• Repatriation authority delegated to commercial banks
• Post-transaction supervision replacing approval-based system

Ongoing Improvements

• Integration of 14 agencies into single digital platform
• Real-time application tracking system
• Automated inter-agency coordination
• Performance-based accountability for delays

Common Challenges and Solutions

Comparison: Traditional vs One Stop Approval

Frequently Asked Questions About One Stop FDI Approval

What is the One Stop Service Centre (OSSC)?

OSSC is IBN's coordinated facilitation mechanism that brings together 14 government agencies under a single framework to provide streamlined services to large-scale investors. Each agency designates a focal person to coordinate with IBN for investor services .

How long does one stop FDI approval take?

For investments below NPR 6 billion under the automatic route, approval is granted within 7 working days. For large-scale investments above NPR 6 billion, IBN provides approval within 15 working days .

What is the difference between DOI and IBN one stop services?

DOI handles standard FDI approvals below NPR 6 billion through an online automatic route system. IBN manages large-scale investments above NPR 6 billion through its OSSC with dedicated coordination across 14 government agencies .

Which sectors are covered under one stop approval?

The automatic route covers 102 sectors as of February 2026, including manufacturing, services, IT, tourism, energy (below 200 MW), and most infrastructure sectors. Restricted sectors include arms, ammunition, real estate trading, and certain defense-related industries .

Is physical presence required for one stop approval?

No, the system is designed for digital processing. Applications can be submitted online, and approvals are issued electronically. However, large-scale investments may require meetings with IBN for project discussion and PDA negotiation.

What documents are required for one stop FDI approval?

Required documents include: company registration/incorporation documents, audited financial statements, project proposal/feasibility study, passport copies of investors, board resolution for investment, source of funds declaration, and sector-specific clearances (environmental, land, etc.).

Does one stop approval include post-investment services?

Yes, both DOI and IBN provide after-care services including investment monitoring, compliance support, issue resolution with government agencies, and facilitation for expansion or additional investments.

Can one stop approval be revoked?

Yes, approval can be revoked if the investor fails to inject capital according to the prescribed schedule (25%/15%/10% within 1 year, 70% before operation, 30% within 2 years), violates FITTA provisions, or engages in fraudulent documentation .

What is the role of Nepal Rastra Bank in one stop approval?

NRB manages foreign exchange aspects including capital injection recording and repatriation facilities. As of December 2025, prior NRB approval is no longer required for FDI equity inflows, though recording within 6 months remains mandatory .

How can investors track their application status?

Investors can track applications through online portals: DOI portal (fdi.gov.np) for automatic route investments and IBN website (ibn.gov.np) for large-scale projects. Both systems provide real-time status updates.

Why Choose Corporate Np for One Stop FDI Services?

Corporate Np specializes in navigating Nepal's one stop FDI approval provision with comprehensive services:

• DOI automatic route application preparation and submission
• IBN OSSC coordination and facilitation
• Documentation compilation and verification
• Inter-agency coordination support
• Digital platform navigation assistance
• Post-approval compliance management
• NRB recording and repatriation facilitation
• Ongoing regulatory compliance support

With extensive experience in Nepal's investment facilitation framework, Corporate Np ensures seamless navigation of one stop approval processes for foreign investors. Contact Corporate Np today to leverage Nepal's streamlined single window FDI Nepal system.

References

For additional information on one stop FDI approval provision in Nepal, consult these authoritative sources:

• Investment Board Nepal Official Website - OSSC services and large project approval
• Department of Industry Nepal - Automatic route FDI approval
• Nepal Investment Guide 2024 - Comprehensive investment procedures
• Public Private Partnership and Investment Act 2019 - OSSC legal mandate
• Foreign Investment and Technology Transfer Act 2019 - FDI approval framework
• Industrial Enterprises Act 2020 - Industry facilitation
• Office of Company Registrar - Company registration
• Nepal Rastra Bank - Foreign exchange regulations
• Inland Revenue Department - Tax registration and incentives
• Ministry of Industry Commerce and Supplies - Investment policy

Disclaimer: The information provided in this guide is for general informational purposes only and does not constitute legal or investment advice. One stop approval procedures and timelines are subject to regulatory changes. While the government has committed to defined timelines, actual processing may vary based on application completeness, sector-specific requirements, and inter-agency coordination. Consult qualified legal professionals and visit official government portals for the most current requirements before initiating investment applications under Nepal's one stop FDI approval provision.