A foreign national cannot lawfully take up employment in Nepal on a tourist visa. The Labour Act 2074 requires the employer to obtain a work permit from the Department of Labour and Occupational Safety before the foreigner starts work, and the Immigration Act 2049 requires the foreigner to hold a non-tourist visa that matches the permit. The two departments do not talk to each other automatically, so the sequence and the paperwork have to be managed carefully. This guide sets out the process we run for employers hiring from abroad and for investors who want to run their own company.
Who needs a work permit
Any foreigner who is paid to work in Nepal needs a permit, whether employed by a Nepali company, seconded from a foreign parent, or engaged on a consultancy. The exceptions are narrow: Indian citizens, who do not need a permit or visa under the 1950 treaty; diplomats; and staff of projects covered by a bilateral agreement that provides its own exemption. Investors who hold shares approved under FITA do not need a work permit to act as directors, but they still need a business visa.
The employer's side: work permit
The employer must first show that the position could not be filled by a Nepali citizen. This normally means advertising the post in a national daily newspaper, waiting the required period, and recording why the applicants were unsuitable. The employer then applies to the Department of Labour with the advertisement, the foreigner's qualifications, the employment contract and a recommendation from the relevant line ministry or the Department of Industry. Permits are issued for a year at a time, renewable up to a total of five years for most roles, and the number of foreign employees is capped at a percentage of total staff.
- Publish a vacancy notice in a national newspaper and wait 15 days
- Obtain a recommendation letter from the line ministry or Department of Industry
- Apply to the Department of Labour with the contract, CV, degree certificates and passport copy
- Collect the work permit and pay the annual fee
- Apply to the Department of Immigration for the non-tourist visa using the permit
The employee's side: non-tourist visa
With the work permit in hand, the employee applies at the Department of Immigration in Kalikasthan for a non-tourist (working) visa. The application needs the permit, the employer's registration and tax clearance, and the passport with at least six months' validity. The visa is normally granted for the same period as the permit and can be extended each year on production of a renewed permit. Dependants can apply for a dependant visa on the strength of the principal's visa and a relationship certificate.
| Visa type | Who it is for | Basis | Duration |
|---|---|---|---|
| Non-tourist (working) | Foreign employees | Work permit from Department of Labour | Up to 1 year, renewable |
| Business | FITA-approved investors and their families | DOI investment approval, NRB remittance record | Up to 1 year, renewable; 5 years for investments above USD 1 million |
| Dependant | Spouse and children of the above | Relationship certificate and principal's visa | Same as principal |
| Tourist | Visitors | Entry on arrival | Up to 150 days per calendar year; no work permitted |
Business visas for investors
A foreign investor whose investment has been approved by the Department of Industry and recorded by Nepal Rastra Bank is entitled to a business visa, as are the investor's authorised representative and immediate family. The visa is issued by the Department of Immigration on recommendation from the DOI and is renewed annually on proof that the investment remains in place and the company has filed its tax returns. Investors bringing in more than USD 1 million can obtain a residential visa valid for up to five years.