News Article

Govt amends conditions to allow non-resident Nepalis to establish an investment company together

By Republica

Published: March 04, 2023 09:30 AM

KATHMANDU, March 4: The government has amended the conditions for establishing investment companies in order to encourage non-resident Nepalis to invest in Nepal.

After the amendment made by the Ministry of Industry, Commerce and Supplies (MoICS), non-resident Nepalis will now be allowed to establish a company in Nepal in collaboration with the Government of Nepal.

Director General of the Department of Industry Ram Chandra Tiwari said that the conditions of company establishment have been amended to encourage non-resident Nepalis to invest in Nepal. "In the form of industry, non-resident Nepalis will also be allowed to open companies in joint investment with the government," Director General Tiwari said, "We hope that this will facilitate the entry of non-resident Nepalis into Nepal."

According to the revised conditions, now the government of Nepal and non-resident Nepalis will be allowed to establish an investment company for joint investment. Such a company can invest from a minimum of Rs 100 million in the area specified by the Foreign Investment and Technology Transfer Act 2019. Investment companies established by non-resident Nepalis in collaboration with the government are allowed to invest in bonds and debentures of infrastructure-related projects.

The government has also arranged for such companies to approve foreign investment from their own company. The department also said that the government will prescribe a separate procedure for the arrangement of taking the investment amount of non-resident Nepalis out of Nepal.

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