When foreign companies pursue company incorporation in Nepal, they often appoint foreign nationals as directors to oversee business operations. However, one of the most critical — yet often overlooked — aspects of this process is understanding the visa and work permit requirements for foreign directors. Without the right immigration compliance, even legally incorporated businesses may face operational disruptions.
This comprehensive guide provides essential insights into the types of visas available, application procedures, required documents, and legal obligations for foreign directors operating in Nepal.
Yes. Under the Companies Act, 2006, foreign nationals can serve as directors in companies registered in Nepal. However, their legal capacity to work and reside in Nepal depends on securing appropriate visa and work permit clearances from the Government of Nepal.
There are primarily three visa types that foreign directors typically apply for in Nepal:
The Business Visa is the most common choice for foreign investors, shareholders, and directors involved in company incorporation in Nepal. It is designed for individuals actively participating in the operation or management of a registered business.
Key Features:
Issued for 1 year and renewable
Allows multiple entries
Enables direct involvement in business activities
Eligibility:
Must be a shareholder, investor, or executive director of a company with approved foreign investment.
In some cases, a Non-Tourist Visa can be issued to foreign nationals who have special authorization or are performing administrative functions under a recognized institution or government project. However, it’s less common for private company directors.
Foreign directors drawing a salary or directly employed by a company must also obtain a Labor Permit issued by the Department of Labor. This allows the director to receive compensation under Nepali labor laws.
🔎 Note: A business visa alone does not permit salaried employment unless a labor permit is also secured.
Step 1: Company Registration
The director must be officially appointed by a company that has completed company incorporation in Nepal with approved foreign investment.
Step 2: Application to Department of Industry (DoI)
The company submits a request to the DoI stating the purpose of the foreign director’s visit and business role.
Step 3: Investment Confirmation
The director’s investment or executive role must be verified. A minimum of NPR 20 million is typically required for foreign investment approval.
Step 4: Recommendation Letter
The DoI provides a recommendation letter to the Department of Immigration.
Step 5: Visa Issuance
The Department of Immigration reviews the case and issues a Business Visa, typically valid for 1 year and renewable annually.
Any foreign national drawing a salary must obtain a Labor Permit, in addition to a visa.
Steps:
Submit a labor approval request to the Department of Labor
Provide documents including:
Appointment letter
Copy of passport
Business registration certificate
Shareholder’s agreement or board resolution
Attend an interview if required
Receive labor permit for a fixed term (typically 1 year, renewable)
Once the director receives a labor permit, they are considered an employee under Nepalese law and must:
Register for PAN
Pay personal income tax as per Nepal’s Income Tax Act
File annual tax returns
Employers are also required to deduct TDS (Tax Deducted at Source) from the director’s salary and deposit it with the tax office.
A foreign director without a valid visa may not be allowed to open a bank account, sign contracts, or enter into tax arrangements.
Foreign directors residing outside Nepal must provide a local address or appoint an authorized local representative.
All visa applications and renewals must be done through official channels, and processing times can vary from 2 to 4 weeks depending on the case.
Entering on a tourist visa and engaging in business — this is illegal and can result in deportation.
Not applying for a labor permit while receiving a salary.
Ignoring annual renewal procedures — overstaying your visa can result in fines or blacklisting.
Valid passport (minimum 6 months validity)
Business registration certificate
Proof of investment (foreign currency transfer)
Tax clearance (if renewing)
Appointment letter or Board Resolution
Copy of Labor Permit (if applicable)
Recommendation letter from DoI or IBN
Business visas and work permits are typically issued for 1 year, with the possibility of annual renewal.
Companies must provide updated tax compliance documents and proof of ongoing investment to renew the visa.
Overstaying even by a few days can result in fines or visa cancellation.
Foreign directors play a pivotal role in leading and managing companies incorporated in Nepal. However, without proper visa and work permit arrangements, they risk violating immigration and labor laws. By understanding the necessary legal framework and documentation process, companies can ensure full compliance and smooth operation in Nepal’s growing business ecosystem.
If you're planning company incorporation in Nepal, integrating immigration planning early into your setup process will save time, avoid penalties, and ensure business continuity.