Foreign Investment under the law of Nepal
A foreign investor’s investment in any industry in the form of;
|SN||Foreign Investment||Transfer of Technology.|
Entry, Exit and Restricted of FDI
||Foreign Investor may dispose off his/her investment at any time/free exit,||
Foreign Exchange and Repatriation Facilities
|1||Investors entitled to open and operate bank accounts in Nepal in Foreign Currency and transfer funds in foreign currency through banking channel.|
An investor making investments in foreign currency is entitled to repatriate the following amounts with the approval of the Nepal Rastra Bank, after paying the tax related liabilities under the prevailing Law:
Procedures for approbate of Foreign Investments
|1||Investor should apply in concerned department for investment approvals||GON/DOI/BOI||Approves within 30 days||
According to FITTA SEC.3(3) FDI Approval Agency is depending on Volume of Investment;
DOI Approve: FDI up to RS. 50 Million
Note: If the amount is exceeds than RS. 50 Million DOI refers the case to Industrial Promotion Board.
According to BOI Act, sec.10 (5) BOI Approve: FDI Exceeds 1 billion.
|A permit/license is to be issued by the concerned authority.|
According to investment Board Act, section 9, the Project falls under the BOI are;
- Project or any other infrastructure, manufacturing & service industry cost estimate - more than ten billion NRS
- Infrastructure projects prescribe by GON such as - tunnel roads, highways, high bridge, rope-ways, and railways.
- Regional or international airports
- Chemical fertilizer and petroleum refinery plant
- Hydro-power generation - more than 500 MW capacity
- SEZ, Export Promotion Zone or Special Industrial District, IT parks,
- Special treatment to the projects established under BOI Act
- Industrial Enterprises Act, 1992 and FITTA (sec.12, 17 BOI Act) provides additional facilities; incentives and exemptions shall be extended to the investment.
- Rule 28 of BOI Rules, 2012 provide the criteria and facilities to be given to such projects.