Foreign Investment In Nepal

Forms of Foreign Investment According to foreign investment and technology transfer Act, 1992, foreign investors are allowed to participate in an industry, hydro power and other project in the following forms:
a. Investment in share .
b. Reinvestment of earnings derived from the clause (a) above
c. Investment made in the form of loan or loan facilities

1.2 Forms of Technology Transfer "Technology transfer" means any transfer of technology to be made under an agreement between an industry and a foreign investor on the following matters:
a. Use of any technological right, specialization, formula, process, patent or technical know-how of foreign origin.
b. Use of any trademark of foreign ownership.
c. Acquiring any foreign technical consultancy, management and marketing service.

1.3 Procedural Arrangement for obtaining the permission

1.3.1 Foreign Investment in a New Industry Foreign investors desiring to invest in Nepal whether as a wholly foreign ownedenterprises or in a joint venture with Nepalese promoters are required to apply to the DOI on a prescribed application form, along with following documents:
A. Project Report 1 Copies
B. Joint Venture Agreement 2 Copies
C. Citizenship certificate of local party or certificate of incorporation and company profile, if participant is a company 1 copy
D. Copy of passport of foreign party/or certificate of incorporation, if participants is a company 1 copy
E. Bio-data/Company profile of the foreign party 1 copy
F. Financial Credited of the foreign investor provided by a bank 1 copy
G. Authority letter (s) from the companies concerned
After the approval of foreign investment, up to a maximum amount (depending upon the fixed assets) NRs. 20,000.00 has to be deposited in Nepal Rastra Bank in deposit account of HMG. The amount shall be refunded to the promoters once the project comes in operation.