Nepal is emerging as a strategic location for manufacturing investment in South Asia. With full foreign ownership allowed, growing domestic demand, affordable labor, and access to neighboring markets like India and China.
Recent statistics proving manufacturing in Nepal is on the rise
Total FDI Pledges
In FY 2024/25
New Manufacturing FDI Commitments
Worth NPR 3.84 billion
Capacity Utilization
Foreign-run manufacturing
Nepal's manufacturing sector offers first-mover advantages with government policies and infrastructure geared toward attracting new investment.
Under Nepal's FITTA 2019, foreign companies can own 100% equity in manufacturing projects without requiring local partners.
Fast-track approval for investments up to NPR 500 million (~USD 3.8M), reducing waiting time and bureaucracy.
Access to SEZs with tax holidays up to 10 years, customs duty exemptions, and VAT refunds on inputs.
One of the lowest wage structures in South Asia with a growing pool of semi-skilled and skilled workers.
Trade agreements with India, China, and SAFTA providing access to markets covering 3+ billion consumers.
Many manufacturing sectors have minimal foreign competition, offering significant market share opportunities.
Foreigners can invest in almost all manufacturing sectors with promising opportunities across various industries.
Export-quality production for India, EU, and U.S. markets
Cement, bricks, tiles, pre-fab panels
Bags, wrappers, PET bottles, containers
Device assembly, lighting systems, batteries
Spices, noodles, juice, flour, dairy processing
Modular furniture, plywood, engineered boards
Herbal creams, soaps, shampoos
Surgical gloves, capsules, herbal medicines
We guide foreign investors through each stage of the manufacturing setup process
Research demand, supply chains, and product potential. Choose the right sector based on profitability and export ability.
Get Market AnalysisRegister a Private Limited Company with 100% foreign ownership. Required documents include passport, investment proposal, and feasibility study.
Start RegistrationSubmit application to Department of Industry (DOI) for investments up to NPR 6 billion or Investment Board Nepal (IBN) for larger projects.
Apply for FDISelect between government industrial estates, private industrial parks, or SEZs based on your product and export goals.
Find LocationsSecure industry operation license, environmental clearance, local municipal permits, and import permits for machinery.
Get License SupportHire local staff, procure machines, and connect with raw material suppliers. Start operations and legally repatriate profits after tax.
Launch Operations100% foreign ownership allowed
Full repatriation of profits and dividends allowed
Tax treaties with many countries
Currency backed by India for stability
Access from both India and China
Enter while competition is minimal
From the moment you decide to invest, we provide comprehensive support for your manufacturing investment journey in Nepal. You're not alone - we ensure your investment is smooth and successful.
Business planning & market research
Company setup & FDI approval
Location & permits assistance
Local staff & supplier connections
Marketing & trade support
The manufacturing sector in Nepal is still relatively untapped. Many factory types have very few or no foreign players yet, meaning less competition and more market share for you. The government is actively attracting foreign capital - enter while the support system is improving fast.
Get Started Now