Foreign Investment and Technology Transfer Act, 2019 (2075).

This Act is enacted to make national economy competitive, strong and employment-oriented through mobilization to the maximum extent of the available means and resources for economic prosperity of the country, and to achieve sustainable economic growth through industrialization while creating investment friendly environment to attract foreign capital, technology and investment in the sectors of import substitution, export promotion, through increase in productivity, and of infrastructure development and production of goods or services.
A foreign investor may make foreign investment by making technology transfer in any industry established in Nepal (Section 7). According to sub-section (1) of Section 3, foreign investor may make foreign investment in any industry and derive gains from such investment. Notwithstanding anything contained in sub-section (1) of Section 3, no industry operated with foreign investment may make foreign investment of profits earned or in any other manner, in any industry referred to in the Schedule. Provided that technology transfer may, with the approval of the Department of Industries, be made in an industry referred to in the Schedule which is established with Nepali investment. Industries or businesses restricted for foreign investment include: 1. Poultry farming, fisheries, bee-keeping, fruits, vegetables, oil seeds, pulse seeds, milk industry and other sectors of primary agro-production; 2. Cottage and small industries; etc. The Department of Industriesshall approve the foreign investment not exceeding six billion Rupees. The Investment Board under the Investment Board Act, 2011 (2068) shall approve the foreign investment exceeding six billion Rupees. The Government of Nepal may make necessary arrangement so that exemptions, facilities, concessions or services to be provided to the foreign investors are provided through the Single Stop Service Centre. The services to be provided through the Single Stop Service Centre may include: (a) Registration and administration of industries; (b) Approval of foreign investment and loan; (c) Registration and administration of companies; (d) Testing and control of quality of goods produced by industries; (e) Approval of environmental study report; etc. A foreign investor shall have to manage such land as may be required for the industry, by purchasing it on his or her own or through other means in accordance with the prevailing law.
The Act further makes provisions for: Functions, duties and powers of the Department of Industries and the Investment Board on promotion, facilitation and regulation of foreign investment; National treatment; Monitoring and inspection of industries; Settlement of disputes; Provisions relating to land; etc.