Outward Foreign Investment from Nepal – Regulatory Handbook

For 44 years, Pioneer Law has been part of Nepal’s commercial legal journey. As one of the oldest corporate law firms in Nepal, we have seen the country’s business laws evolve slowly, sometimes unevenly, but steadily towards a system that allows Nepali businesses to move towards a bigger purpose.

Outward investment is something our lawyers have been loud about for a long time. Articles, conferences, panels – we’ve shown up and made the case, repeatedly, that a Nepali company shouldn’t have to choose between staying home and going global. Growth isn’t just about exporting what you make. It’s about planting a flag somewhere, having a real presence in the markets that matter. An exporter ships. An investor belongs. That argument took years to land, but it landed.

When Nepal’s outward foreign direct investment framework finally began to take shape, Pioneer Law was ready. We advised a client in obtaining what was Nepal’s first outward foreign direct investment approval. The process was anything but straightforward. It exposed a structural deadlock for which there was no ready answer. Working closely with the client and regulators, we helped find a practical workaround. That episode is captured in this handbook and, for what it’s worth, the solution ended up being reflected in the regulation which shaped the path for others.

This handbook is meant to make the journey easier for businesses, investors, advisers, and anyone trying to understand Nepal’s outward investment regime.

We are grateful to our contributing authors, who brought their experience, and practical insight into this publication. For a deeper discussion or specific queries, please feel free to reach out to them directly.