Published On: June 8, 2021 07:15 PM NPT By: Republica | @RepublicaNepal
The central bank adopts flexible policies in FDI by reducing steps in licensing procedures
KATHMANDU, June 8: Nepal Rastra Bank (NRB), in a bid to shorten the process for licensing of the foreign direct investment (FDI)-based companies, has scrapped the provision that required foreign investors to take permission from the central bank to bring in the foreign capital inside Nepal.
Enforcing the NRB Foreign Direct Investment and Loan Management Bylaw, 2021 on Tuesday, the NRB revised the previous provision for foreign companies vying to start their business in Nepal. In the new context, the companies concerned do not have to visit NRB units once they receive permission from the government authorities like the Department of Industries or Investment Board Nepal, among others, to start a new business.
Similarly, the foreign companies do not have to receive NRB approvals to bring in foreign currencies required for registration, feasibility study and other preparatory works to start new businesses.
Any foreign company looking to invest up to US $ 1 million in Nepal does not have to submit any audit report to the NRB. For the repatriation, NRB will allow depositing returns of the companies only in the financial institutions of the country of origin from which the foreign investors make their way to come to Nepal.
Likewise, the loans received by the foreign investors need to be recorded at NRB. The FDI-based companies need to receive the NRB permission in case of ownership transfer.
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