Executive Summary & Key Takeaways:
- FITTA 2019 Legal Framework: Foreign Direct Investment in Nepal is governed by the Foreign Investment and Technology Transfer Act (FITTA 2019), allowing up to 100% foreign equity ownership in technology and export enterprises.
- IT Corporate Tax Concessions: Software development and IT export companies benefit from a reduced corporate income tax concession of 10% to 15% (vs standard 25%).
- 100% Legal Profit Repatriation: Section 20 of FITTA guarantees foreign investors full repatriation rights for net dividends, capital, and royalties in foreign currency.
- Turnkey Engagement Alternative: Foreign companies can deploy dedicated remote software squads via IntechNexus with zero local entity registration friction.
1. Business Entity Options for Foreign Investors in Nepal
Foreign tech companies and global investors expanding into Nepal can select from three corporate setup vehicles:
| :--- | :--- | :--- | :--- | :--- |
|---|---|---|---|---|
| Private Limited (Pvt Ltd) | Up to 100% Foreign | NPR 20M (~$150k USD) | 100% Legal Dividends & Capital | Long-term commercial operations, local product development |
| Branch Office | 100% Parent Entity Owned | DOI Approval Required | 100% Parent Repatriation | Global enterprises extending existing foreign entity into Nepal |
| Managed Squad via IntechNexus | Zero Local Entity Required | $0 Capital Lockup | Direct Monthly Invoicing | Rapid tech squad deployment without legal incorporation friction |
2. Frequently Asked Questions (FAQ)
Q1: How long does company incorporation take under FITTA 2019?
Answer: Standard Department of Industry (DOI) approval, Office of Company Registrar (OCR) incorporation, and PAN/VAT registration take approximately 4 to 6 weeks. Managed squads via IntechNexus deploy in 10 to 14 days.
3. Related Market Entry Links
- Explore IntechNexus Tech Squads: View IntechNexus Venture
- Read IT Developer Hiring Guide: How to Hire Remote Developers in Nepal
- Start Business in Nepal Guide: Read Market Entry Blueprint
- Schedule Market Entry Briefing: Contact Our Team