Kathmandu. Kathmandu: Nepal Rastra Bank (NRB) has opened the way for Nepali citizens to invest up to a maximum of $ 1 million abroad in the information technology industry.
Nepal Rastra Bank (NRB) has amended the Foreign Investment and Foreign Debt Management Regulations 2078 BS for the fourth time, paving the way for foreign investment for information technology companies.
Earlier, after the Government of Nepal took a policy decision to allow investment abroad for information technology industry, foreign exchange regulator Nepal Rastra Bank (NRB) regulations were implemented due to lack of provisions in this regard. The government had amended the law through an ordinance in January last year to allow Nepali companies to open branch offices abroad and directly invest share capital in foreign companies.
According to the Regulations, 2021, the exempted industry will be allowed to invest 50 percent of the amount earned by exporting services abroad or up to $ 1 million in US currency or equivalent foreign currency (the lowest of the two).
In order to invest abroad, the INFORMATION technology industry must have earned foreign exchange by exporting information technology related services in at least the last three financial years.
Nepal Rastra Bank (NRB) will have to inform the applicant within 15 working days of applying for investment abroad with necessary documents.
Audited financial statements related to investment made abroad will have to be submitted to the unit within six months of the end of the financial year according to the financial year of the concerned country and the financial year of Nepal. If there is no need to audit as per the law of the country concerned, they can submit unaudited financial statements along with documents certifying it.
The money earned from foreign investment or investment will have to be brought back to Nepal through the banking system.
According to the regulations, action will be taken as per the prevailing law if foreign exchange is found to be misappropriated or found to be contrary to the prevailing laws.
The institutions investing abroad will have to submit the data and details related to investment abroad at the time demanded by the Rastra Bank.
