Industry Registration in Nepal for Foreign-Invested Businesses

Company Registration

Creates the legal company through OCR/CAMIS.

Industry Registration

Registers the company's industrial/business activity under the Industrial Enterprises framework.

A company registration certificate alone does not mean the proposed industry has been registered.

Likewise:

Company objective in MOA ≠ industry licence/registration.

DOI currently states that after the company is incorporated, the investor applies for industry registration using the prescribed form together with documents including:

• foreign-investment approval letter;

• company incorporation certificate;

• Memorandum of Association;

• Articles of Association;

• environmental study documentation where applicable.

DOI's broader current checklist also identifies items such as:

• prescribed industry-registration application;

• project report/scheme;

• shareholder identification;

• foreign-investment approval;

• Joint Venture Agreement where applicable;

• financial/project proposal;

• bank credibility documentation;

• sector approvals where required.

A project report should ordinarily establish core project information such as:

• nature of industry;

• products/services;

• fixed capital;

• working capital;

• total investment;

• production/service capacity;

• raw materials;

• machinery;

• employment;

• location;

• utilities;

• implementation plan;

• financial projections.

This document should agree with the:

• FDI approval;

• MOA objectives;

• capital structure;

• environmental documents.

Large inconsistencies between these documents can delay registration.

Depending on the industry:

• no separate detailed study;

• Initial Environmental Examination;

• Environmental Impact Assessment; or

• another prescribed environmental study

may be required.

DOI specifically identifies IEE/EIA documentation among industry-registration materials where applicable.

The environmental requirement should therefore be checked before construction or major capital expenditure begins.

Certain industries need approval from another regulator before or alongside industry registration.

Examples can include:

• hydropower/energy;

• mining;

• petroleum;

• alcohol;

• health;

• tourism;

• telecommunications;

• other regulated sectors.

DOI's current registration guidance expressly requires prior consent/approval from other agencies where applicable.

For a hydropower-generation industry, DOI currently identifies additional documents such as one or more of:

• survey licence;

• Power Purchase Agreement;

• National Grid Connection Agreement;

• generation licence

depending on the project's status.

This illustrates why an industry-registration checklist must be sector-specific.

Industry registration determines matters such as:

• industrial category;

• size/capital classification;

• permitted activity;

• production capacity;

• location;

• sector conditions.

Those classifications can later affect:

• tax incentives;

• customs concessions;

• environmental obligations;

• annual reporting;

• labour requirements;

• licences.

The industry registration certificate should therefore be reviewed before the company's accounting/tax profile is finalised.

The industry registration/approval framework typically specifies a period within which the industry should commence operation.

Where the project is delayed, the investor should apply for the relevant extension rather than allowing the commencement period to expire silently.

Record the operation commencement date and extension procedure from the actual approval and applicable law. If delay is expected, seek the required extension before the permitted period expires.

Industry Operation Deadline & Extension

resource because this is a recurring foreign-investment compliance issue.

Industry registration creates ongoing compliance.

DOI currently continues to publish notices requiring submission of annual industry progress reports. Its 2026 site lists a current notice regarding filing of the annual industry progress report.

Accordingly, a registered industry should not be treated as a one-time approval file.

If the industry later changes matters such as:

• total investment;

• fixed capital;

• foreign investment;

• ownership;

• capacity;

• objectives/activity;

• location;

both company-law and industry/FDI records may need amendment.

Do not update only OCR while leaving the DOI project record unchanged.

Foreign investor obtains FDI approval.

Day 0: FDI approval issued.

The investor should then complete:

• Nepal company incorporation;

• tax registration;

• relevant environmental documentation;

• industry-registration application

within the applicable approval validity period, including DOI's current 35-day industry-registration requirement following FDI approval.

If completion is not possible:

apply for extension rather than simply missing the deadline.

• Obtain FDI approval

• Check 35-day deadline

• Incorporate Nepal company

• Obtain/verify PAN

• Prepare prescribed application

• Prepare project report

• Attach MOA/AOA

• Attach shareholder/investor documents

• Attach JVA where applicable

• Determine IEE/EIA requirement

• Obtain sector approvals

• Submit through current IMIS/DOI procedure

• Obtain industry-registration certificate

• Verify capital/activity/capacity

• Record commencement deadline

• Calendar annual progress report

• Preserve complete approval file

Assuming company registration automatically registers the industry

Missing the 35-day post-FDI approval period

Using a project report inconsistent with FDI approval or MOA

Beginning regulated operations before sector/environmental approval

Ignoring annual DOI reporting after registration

Updating OCR capital but not DOI/FDI records

Industry registration connects the approved foreign investment to the actual operating project. The FDI approval, company documents, project report, environmental approval and industry certificate should describe the same underlying investment.