FDI & International

Effective international expansion for Nepalese companies involves several strategic steps: Begin with thorough market research and selection, identifying markets with demand for your products/services and favorable entry conditions. Develop a clear entry strategy, whether through direct exports, partnerships, joint ventures, or establishing foreign subsidiaries. Create an optimal international structure that addresses tax efficiency, regulatory compliance, and operational needs across jurisdictions. Secure necessary financing for international operations, potentially leveraging export credit agencies or international development funds. Adapt your products, services, and marketing approach to meet local market requirements and preferences. Establish robust compliance systems for international regulations, including trade, tax, and industry-specific requirements. Finally, build local networks and relationships to navigate business cultures and practices in target markets. Our team provides comprehensive support across all these dimensions, tailored to your specific expansion goals.

International tax planning faces several common challenges: Navigating complex and sometimes conflicting tax laws across multiple jurisdictions; addressing transfer pricing requirements for intercompany transactions; managing permanent establishment risks that could create unexpected tax liabilities; keeping pace with rapidly evolving international tax regulations, including BEPS (Base Erosion and Profit Shifting) initiatives; and balancing tax efficiency with substance requirements and anti-avoidance rules. Our approach to addressing these challenges includes comprehensive jurisdiction analysis to identify tax implications across all relevant countries; developing robust transfer pricing policies with appropriate documentation; strategic permanent establishment planning that aligns with business operations; proactive monitoring of regulatory changes with timely adaptation of tax structures; and ensuring all tax planning has genuine business purpose and economic substance. We focus on sustainable tax strategies that withstand scrutiny while legitimately minimizing your global tax burden.

Our approach to profit repatriation is comprehensive and tailored to each client's specific circumstances. We begin by analyzing the regulatory framework in both the source and destination countries, including foreign exchange controls, banking regulations, and any restrictions on outbound payments. We then evaluate various repatriation methods (dividends, royalties, management fees, interest, etc.) to determine the most efficient approach from tax and regulatory perspectives. We leverage applicable tax treaties to reduce withholding taxes and avoid double taxation. We develop a structured repatriation plan that addresses timing, documentation, and approval requirements. We also implement proper intercompany agreements and transfer pricing documentation to support cross-border payments. Throughout implementation, we coordinate with banks, regulators, and tax authorities to ensure smooth execution. Our goal is to create sustainable repatriation mechanisms that maximize after-tax returns while maintaining full compliance with all relevant regulations.