Section 3: Foreign Investment May Be Made

1) A foreign investor may make foreign investments in any industry and derive gains from such investments.

2) Notwithstanding anything contained in sub-section (1), 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 be made, with the Department’s approval, in an industry referred to in the Schedule, which is established with Nepali investment.

3) Notwithstanding anything contained in sub-section (1), approval shall not be given for making foreign investment in any industry of an amount that is less than the amount specified by the Government of Nepal by notification in the Nepal Gazette.