Foreign Direct Investment in Hospitality

Foreign Direct Investment in Hospitality

The hospitality and tourism industry in Nepal is a major source of revenue for the country. Tourism in Nepal has a high potential due to its heritage culture and heritage, uniqueness in ecosystems, landscapes, and beautiful landscape. Tourism has the potential to create a large number of jobs while also serving as a significant source of foreign exchange for the country. Tourism encourages the development of multi-purpose infrastructures such as hotels, resorts, and restaurants. Foreign investment is barred in Nepal’s tourism sectors of travel agencies, tourism guides, trekking and mountaineering guides, rural tourism including homestay, and rural tourism including homestay; however, 100 percent FDI is permitted in tourism and hospitality sectors, including tourism construction projects such as the development of hotels, resorts, and recreational facilities.

For many years, Corporate Lawyer Nepal has provided legal services to the hotel/resort/restaurant industry.

1. Assist Chinese citizens who want to invest in Nepal.

Hotel and restaurant services are a type of tourist-related service that provides food, lodging, and recreation to visitors. Nepal is a neighboring country that shares borders with China.

Every year, a large number of Chinese citizens visit Nepal. According to the Department of Industry, Nepal’s FDI commitment from Chinese investors in the tourism sector is expected to be NPR 5.35 billion in 2019/2020, the highest of any year. They have proposed building 30 hotels and restaurants, resulting in the creation of 618 jobs.

2. We help Chinese citizens create project proposals for hotels, resorts, and restaurants

Hotel and restaurant construction in Kathmandu Valley, Chitwan, and Pokhara. We have provided legal counsel in the following activities, which are detailed below.

  • Filing an application with the Department of Industry.
  • Approval from the Department of Industry.
  • Assist with the transfer of funds from China to Nepal.
  • Acquiring the land required for a hotel, resort, and restaurant
  • Monitor conflicts involving land disputes.
  • Obtain the municipal maps required for the construction of a hotel, resort, and restaurant.

3. Assist another investor

According to reports, hotel room demand in Kathmandu, Pokhara, and Chitwan will continue to rise, and new hotel rooms will be built. As more market opportunities and profitability are anticipated, the number of foreign hotel investors is expected to increase. Budget chain hotels and the high-end hotel industry have both grown significantly in recent years.

In Nepal, major global budget hotel chain brands are rapidly expanding.

Hotels in Nepal can be owned by international investors through affiliated companies. Businesses that are entirely owned by one or more foreign investors are referred to as entirely foreign-owned enterprises. Another option for a foreign investor who wants to start a business with a Nepalese partner is to form a joint venture (JV).

When purchasing an existing hotel project in Nepal, foreign investors have the option of purchasing either the entire issued share capital of the project company or a portion of the Nepali company’s share capital. Corporate Lawyer Nepal has drafted contracts and joint venture (JV) agreements for wholly foreign-owned enterprises, as well as assisted them locate land for their projects.


The tourism and hospitality industries are Nepal’s main sources of foreign currency revenue, and their development is a government priority. Corporate Lawyer Nepal advises clients in the tourism and hospitality industries on hotel and resort construction.

For the project, we conduct legal due diligence and asset searches, as well as provide legal and regulatory advice. We have drafted and reviewed licensing/franchising contracts between Foreign Service providers and domestic service recipients.

Corporate Lawyer Nepal has assisted clients to develop and operating five-star hotels and tourist resorts. Corporate Lawyer Nepal also provides hotels, travel agencies, and trekking companies with major business advice.

Corporate Lawyer Nepal has also reviewed and provided feedback on technology transfer agreements for some of the world’s most recognizable brands and hotel chains (managing/marketing/franchising/trademark licensing). For more information on our work in the tourism and hospitality sectors, please contact us f you need such legal assistance, at +977-9849517735 or

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