Highlights of the Foreign Investment and Technology Transfer Act (FITTA)

The Foreign Investment and Technology Transfer Act, known as FITTA, is the backbone of foreign investment law in Nepal. It defines what foreign investment is, how it is approved, and the rights an investor can rely on once the capital is in.

What counts, and what is restricted

FITTA covers equity investment, reinvestment, and technology-transfer arrangements such as licensing and franchising. It also works alongside a negative list of sectors closed to foreign investment, and sets minimum-investment thresholds, so the first question for any investor is whether the intended activity is open at all.

Approval and technology transfer

Foreign investment is approved by the Department of Industry or the Investment Board depending on size. Technology-transfer agreements, royalties, and the use of foreign trademarks and know-how are recognised and registered under the same framework, which matters for both the investor and the local partner.

Protections that matter

FITTA’s significant promise to investors is the right to repatriate, dividends, sale proceeds, and approved royalties, through the banking channel, provided the investment was brought in and recorded correctly. That protection is only as strong as the paperwork behind it, which is why structuring the investment properly at the start is decisive.