Overview of Nepal’s F&B Manufacturing Sector
Nepal’s food and beverage industry is growing rapidly, with increasing demand for:
✔ Packaged snacks and beverages
✔ Dairy products
✔ Processed fruits/vegetables
✔ Alcoholic/non-alcoholic drinks
✔ Specialty foods (organic, gluten-free)
Business Registration Process
1. Company Formation
- Register as Private Limited Company (minimum NPR 500,000 capital)
- Obtain PAN/VAT registration from IRD
- Industry registration with Department of Industry
2. Specialized Licenses
| License | Issuing Authority | Fee (NPR) | Validity |
|---|---|---|---|
| Food Manufacturing License | Department of Food Technology and Quality Control (DFTQC) | 25,000 | 5 years |
| Nepal Standard Certification | Nepal Bureau of Standards & Metrology | 50,000+ | 3 years |
| Liquor Production License | Ministry of Industry (for alcoholic beverages) | 100,000 | 1 year |
Factory Setup Requirements
Location Considerations
✔ Industrial zones (preferred for tax benefits)
✔ Proximity to raw materials
✔ Adequate water/electricity supply
Infrastructure Standards
- GMP (Good Manufacturing Practice) compliant facility
- HACCP certification for export-oriented units
- Waste management system approval from local municipality
Key Regulations
1. Food Safety Standards
- Must comply with Food Act 1967
- Regular quality testing at DFTQC labs
- Mandatory ingredient labeling in Nepali/English
2. Labor Requirements
- Health checks for production staff
- SSF enrollment for all employees
- Special hygiene training for food handlers
Production Process Flow
- Raw material procurement (local/imported)
- Quality inspection at receiving
- Processing/packaging under controlled conditions
- Quality control testing
- Storage/distribution
Marketing and Distribution
Sales Channels
- Modern trade (supermarkets)
- Traditional retail (kirana stores)
- Online platforms (Sastodeal, Foodmandu)
- Export (India, Middle East)
Branding Requirements
✔ Bilingual labeling (Nepali/English)
✔ Nutritional information
✔ FSSAI registration number (for exports to India)
Financial Considerations
| Cost Component | Estimated Investment (NPR) |
|---|---|
| Small-scale setup | 5,000,000 – 10,000,000 |
| Medium-scale plant | 10,000,000 – 50,000,000 |
| Large-scale facility | 50,000,000+ |
| Monthly operating costs | 500,000 – 5,000,000 |
Government Incentives
✔ Tax holiday for first 5 years in certain industries
✔ Subsidized loans through Agriculture Development Bank
✔ Export incentives for processed foods
FAQs About F&B Manufacturing
1. Can foreigners start food business in Nepal?
→ Yes, but needs 51% Nepali partnership (except in special industries)
2. How long does license approval take?
→ 4-8 weeks for complete processing
3. Are there restrictions on food imports?
→ Yes, certain ingredients require special permits
4. What’s the shelf-life testing requirement?
→ Mandatory for all packaged foods (conducted at DFTQC)
5. Can home-based food businesses scale up?
→ Yes, but requires full licensing after reaching NPR 2M turnover
Success Tips for New Manufacturers
✔ Start with niche products (gluten-free, organic)
✔ Invest in quality packaging
✔ Build distributor relationships early
✔ Participate in food expos (e.g., Nepal Food Expo)
Need Assistance? Contact:
- DFTQC: ☎ 01-4262568
- FNCCI Food Committee: ☎ 01-4262061
💡 The recipe for success? Great product + proper licensing! 🍽️
Join the Conversation