The Federal Democratic Republic of Nepal is a landlocked country in the Himalayas, bordering China to the north, and India to the south.

The country has been pursuing a liberal foreign investment policy and been striving to create an investment‐ friendly environment to attract FDIs into the country. Profitable areas of investment include hydropower, industrial manufacturing, services, tourism, construction, agriculture, minerals and energy. Nepal encourages foreign investment both as joint venture operations with Nepalese investors or as 100 per cent foreign‐owned enterprises. The few sectors that are not open to foreign investment are either reserved for national entrepreneurs in order to promote small local enterprises and protect indigenous skills and expertise or are restricted for national security reasons.

Agriculture remains the country’s most important industry, employing around two-thirds of the population and accounting for a third of GDP. Important products include tea, rice and corn. Nepal’s exports include grain, carpets, clothing, leather and hemp. Around 60% of Nepal’s exports are destined for India.

There is scope for the potential for the development of a large tourist industry – Nepal’s boasts superb mountain landscapes and a fascinating culture. However, though tourism has grown rapidly in recent years, development has been compromised by a lack of infrastructure.

Our firm in Kathmandu, Nepal’s capital, is one of the country’s leading accountancy firms.

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