22/02/2026
Policy Update: Automatic Route for Foreign Investment Approval in Nepal
The Government of Nepal has implemented a significant reform allowing foreign investment approvals to be processed under an automatic route mechanism for eligible sectors and thresholds.
This regulatory shift is expected to:
• Reduce administrative delays
• Enhance procedural efficiency
• Strengthen investor confidence
• Improve Nepal’s investment climate
From a legal perspective, this reform signals a progressive move toward simplifying compliance under Nepal’s foreign investment regime. However, investors must still carefully evaluate:
• Sectoral restrictions
• Threshold requirements
• Reporting obligations
• Compliance under applicable laws and regulations
Strategic legal structuring remains essential to mitigate risk and ensure regulatory conformity.
Our firm provides comprehensive advisory services on:
✔ Foreign Direct Investment (FDI) structuring
✔ Regulatory approvals and compliance
✔ Joint ventures and cross-border transactions
✔ Corporate governance and risk assessment
For tailored legal advice on investing in Nepal, please feel free to connect.