Business Opportunities in Nepal

Nepal is an ideal investment destination for many reasons:

¢ Liberal economic policy of the government that has created investors-friendly climate.
¢ Conducive legal-institutional framework that guarantees investment protection, repatriation of dividend and capital and ensures their ownerships.
¢ Various incentives and facilities offered to foreign investors, including tax holidays.
¢ Abundant supply of cheap labour force and market potentials both in domestic sector and in neighbouring countries
¢ Growing infrastructure

After Nepal embarked on the path of economic liberalisation in early nineties, the Government of Nepal has adopted various policy measures and established institutional support mechanism to attract greater flow of FDI in the country. They include mainly:

1. Industrial Policy, 1992
2. Foreign Investment and One Window Policy
3. Water Resources Development Policy
4. Industrial Enterprises Act, 1992
5. Foreign Investment and Technology Transfer Act, 1992, and
6. Company Act, 1997

Feasible Project Areas for Foreign Investment:

¢ Agriculture and agro-based industry
¢ Textile and apparel industry
¢ Manufacturing industry
¢ Construction industry
¢ Tourism Industry
¢ Service Industry
¢ Mineral based industry
¢ Energy development projects
¢ Projects under BOT arrangements

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