The legal regime for foreign investment by Non-resident Nepalis (NRNs) into Nepal is primarily regulated by the Non-Resident Nepali Act 2064, and the Foreign Investment and Technology Transfer Act 2075. NRNs are of two types, namely, a) foreign citizen of Nepali origin: any person whose father, mother, grandfather or grandmother was a citizen of Nepal at any time and has subsequently acquired the citizenship of any other foreign country other than a member country of the South Asian Association for Regional Cooperation (SAARC), and b) Nepali citizen residing abroad: any Nepali citizen who is residing in any foreign country for at least two years and involved in any profession, occupation, business and employment except in the SAARC region. The definition of NRN also excludes any person who is serving in a diplomatic mission or consulate situated in a foreign country under the assignment of the government of Nepal or who is studying in an academic institution situated in a foreign country.
With regards to foreign investment, NRNs may, through him/herself or through a foreign company in which s/he owns more than 50% of the shares can invest his/her money earned abroad in entities classified as an ‘industry’ in terms of the Industrial Enterprises Act, 2076, except in the following areas:
- Poultry farming, fisheries, bee-keeping, fruits, vegetables, oil seeds, pulse seeds, milk industry and other sectors of primary agro-production.
- Cottage and small industries
- Personal service business (hair cutting, tailoring, driving etc.)
- Industries manufacturing arms, ammunition, bullets and shell, gunpowder or explosives, and nuclear, biological and chemical (NBC) weapons; industries producing atomic energy and radioactive materials.
- Real estate business (excluding construction industry), retail business, internal courier service, local catering service, moneychanger, remittance service.
- Travel agency, guide involved in tourism, trekking and mountaineering guide, rural tourism including homestay
- Business of mass communication media (newspaper, radio, television and online news) and motion picture of national language.
- Management, account, engineering, legal consultancy service and language training, music training, computer training.
- Consultancy services having foreign investment of more than 51%.
Published Date: December 15, 2021, 12:00 am
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