Summary of the Directives to Regulate Social Media in Nepal | Directives to Regulate Social Media in Nepal | Exclusive Blog Post 2 Mins Read

Summary of the Directives to Regulate Social Media in Nepal | Directives to Regulate Social Media in Nepal | Exclusive Blog Post 2 Mins Read

December 6, 2023

On November 27, 2023, the Ministry of Communication and Information Technology of Government of Nepal has enacted and published the “Directives relating to the Regulation for the Usage of Social Media, 2023” or the “Directives to Regulate Social Media in Nepal” with the intention to regulate the social media companies and its users and to promote the self-regulation of the platform operators and users of the social media.

The directives have been enacted by the Government in the aftermath of the ban imposed on TikTok. The study of the Directives helps to identify the intention of the Government of Nepal to impose a ban on TikTok and its frustration with the lack of existing legal and regulatory mechanisms to regulate social media platform and its users. This really helps to understand the ban imposed by the Government of Nepal on the usage of TikTok.

The highlight of the new directive includes immediately listing of the social media platforms with the Ministry of Communication and Information Technology (“Ministry”); establishment of Point of Contact (“POC”) by setting up an office and appointing a contact person in Nepal, for all the social media, restricted activities for the social media users; classification of social media platforms; grievance handling; responsibilities of social media operators and POC; formation of a “Social Media Management Unit”, among others.

The directive has stipulated a 3-months deadline for the existing social media platforms for the registration with the Ministry. Furthermore, the Ministry shall publish a notice outlining other requirements for the listing of new social media platforms. For the listing, the social media company must file an application through an authorized representative by submitting the following documents:

  • Memorandum of Association, Articles of Association, and Incorporation Certificate,
  • Tax registration certificate,
  • Details of Board of Directors,
  • Recent tax clearance certificate,
  • Copy of passport of the authorized representative,
  • Privacy policy, Data Usage Policy, and Information Security Policy,
  • Technical and professional experience documents,
  • Guidelines for Users,
  • Grievance handling process,
  • Other documents as required.

Classification of Social Media Platforms

Small Social Media Platform: Having less than 100,000 users.

Large Social Media Platform: Having more than 100,000 users.

Grievance Handling

Social media platforms must have a resident grievance handling officer and an officer for the monitoring of self-regulation at the Point of Contact. The operators of social media must have a permanent establishment in Nepal.

Key Responsibilities of Social Media Operators

  • To develop algorithms to restrict information, advertisements, and publication or broadcasting of other materials that violates the existing laws of Nepal.
  • To identify and remove contents from the platform within 24 hours of the receipt of such grievance.
  • To remove contents from the platform within 24 hours if directed to do so by the Social Media Management Unit.
  • To formulate or implement necessary guidelines to protect the personal data of the social media users and maintain data privacy.
  • To manage and address the grievance and complaints that arises during the operation of platform.
  • To examine the facts of the contents that are published or broadcasted in the platform.
  • To implement the provisions of Santa Clara Principles developed internationally to regulate the usage of social media.
  • To make necessary payments in relation with the social media platforms via banking channels.

Restrictions for the Social Media Users

The Directives have imposed various restrictions on the users of social media platforms. The users of social media platforms are restricted and legally prohibited to perform the following activities:

  • To create fake user ID, page, and groups,
  • To create or share or comment on third person’s contents by using fake user ID,
  • To promote child marriage, child labor, human trafficking, polygamy, or caste-based untouchability,
  • To transmit hate, or other hateful activities to disturb social respect by using words, audio, visual or making trolls of other person by targeting any specific group, gender, profession, community, age, religion, tribe, etc.
  • To create or share hate speech with an intention to defame or demean other person by using pictures, audio, visual or troll etc,
  • To do cyber bullying,
  • To publish or broadcast fake news, information, or propaganda,
  • To promote activities for child sexual abuse, pornographic content or sexual misbehavior or business,
  • To publish, transmit or propagate vulgar words, pictures, audio, visual, animated contents,
  • To publish private or personal photographs or videos without the consent from the concerned person,
  • To publish or share photo of other person by altercation with the help of animation and montage.

 Non-compliance of the Directives to Regulate Social Media in Nepal

The GoN might prohibit the usage of social media platform for the non-compliance or violations of the provisions of the Directives.

To gain more information on the legal provisions relating to the regulation of social media and digital contents in Nepal, please Contact  us by email at info@lawchintan.com.

Court Marriage in Nepal | Marriage Registration in Nepal: Detail Process with Latest Updates Till November 2023 – Exclusive 3 Mins Read

Court Marriage in Nepal | Marriage Registration in Nepal: Detail Process with Latest Updates Till November 2023 – Exclusive 3 Mins Read

Court Marriage in Nepal | Marriage Registration in Nepal: Executive Summary with Latest Updates Till November 2023 – Exclusive 3 Mins Read

Contact Us – Chintan Law Associates (lawchintan.com)

Updated: November 30, 2023

Court marriage or marriage registration or civil marriage (sometimes informally also referred as ‘Paper Marriage’ or ‘contract marriage’) is a legal process of marriage registration in Nepal. In this process, the marrying couple appears before a competent court having jurisdiction and signs on the marriage register (book) maintained by the court, in front of a judge.

With the implementation of the ‘Muluki National Civil Code’ in 2017, new legal provisions regarding marriage have been enacted & enforced. After the implementation of this code, marriages are registered in a district court in Nepal. There are currently 77 district courts, and applicants may register marriage in any of the courts, depending on their residence or convenience.

Section 70 of the Muluki Civil Code lists the following criterias for a man and a woman to get married.

  1. Both man and woman must accept each other as wife and husband.
  2. Marrying couple must not be in blood relation such that they can be punished for incest.
  3. Both man and woman must be unmarried or single or divorced.
  4. Both man and woman must have completed 20 years in age.

However, the law has created a reservation for the caste (tribe) where it is culturally acceptable to marry one’s relatives.

Court Marriage in Nepal is executed as per the legal provision mentioned in Section 77 of the Muluki Civil Code. For the purpose of this article, ‘man’ and ‘woman’ are collectively referred as ‘Applicants’.

The process for the Court Marriage or Marriage Registration is very simple and straightforward. An application can be filed in the District Court of the respective district where the Applicants reside. The law requires Man or Woman or both Applicants to have stayed at least 15 days in the respective district where the application is being filed. In case if Applicants are outside Nepal , they can apply in the respective Nepali Embassy or Consulate. If Applicants are outside Nepal, they must demonstrate that they have stayed at least 15 days in the Country where the application is being filed. [However, due to lack of the procedural directives, the Nepali Embassies in foreign countries have still not initiated the marriage registration process.]

Information Required for Court Marriage in Nepal:

  • Details of Applicants – Full name; address; occupation; father’s and mother’s name; grandfather’s and grandmother’s name; citizenship number and place of issue; details about previous marriage/divorce (not required for persons never married before).
  • Details of all witnesses – Full name; address; age; citizenship number and place of issue.

Documents Required from Nepali Citizens for Court Marriage in Nepal:

  • Duly filled and signed application form in the prescribed format [Prepared by an Attorney].
  • Consensus paper in the prescribed format [Prepared by an Attorney].
  • Recommendation letter from local ward office for temporary residence. This is only required if the application is being filed in a different district other than the district of permanent residence [Issued by the Local Government].
  • Unmarried or single status recommendation letter issued from the local government. This is required for both the Applicants [Issued by the respective Ward Office of the Applicants].
  • Original citizenship of the Applicants.
  • Original citizenship of two witnesses.
  • Passport sized photographs of Applicants.
  • Court fee deposited bank voucher equivalent to NPR 500.

For foreign citizen(s) willing to perform a Court Marriage in Nepal, the following documents are needed:

  • No Objection CertificateUnmarried or Single Affidavit/ or any other document provided by the respective government or embassy or consulate stating the eligibility of the applicant to get married in Nepal. If a document is issued by a foreign government, such documents must be attested by the competent authority like Ministry of Foregin Affairs. This must be translated in to Nepali language and attested by a Notary public.
  • An excerpt of the marriage law of respective country. This must be translated in Nepali language and attested by a Nepali Notary public.
  • Passport and valid visa issued by the Government of Nepal. This must be attested by a Nepali Notary public.

Registration Process:

Applicants and all witnesses must appear at the District Court (in case if applicants are in Nepal); or the Embassy or Consulate of Nepal (in case if applicants are abroad), and register the application along with the required documents. After that applicants must appear before the judge or consulate general and sign in the log book (marriage register). At the end of the process, Applicants shall receive one ‘Certificate of Marriage Registration’. The whole process can take from 1 to 2 days depending on the district court.

Advantages of Court Marriage in Nepal:

  • The entire process is fast and saves time. In some cases, the whole process can be completed in a single day.
  • Cost effective. Since it’s a formal registration done in a court of law.
  • Court marriage is legally accepted and enforceable in foreign countries. Very convenient for visa processing or submitting to foreign countries.
  • No additional limitations. As long as the requirements stated above are met, applicants don’t have to worry about social or family affairs. Court marriage is especially favorable for inter-caste or inter religious marriages.
  • A marriage registration certificate is issued by the respective District court at the end of the process.
  • Online verification of the marriage registration is possible.
  • Smart move due to fewer invitees. Especially after the post Covid-19 pandemic where mass gathering is risky let alone prohibited.

Why Choose Chintan Law Associates?

We are the leading if not the No. 1 law firms representing hundreds of domestic and foreign clients for marriage registration. We have been practicing court marriage from the beginning and have very experienced attorneys who personally handle our clients. Our clients are pre-informed about the process, which reduces last moment surprises, and increases our success rate to a 99.9%. As we enjoy being on top of the game, we ensure highest quality of professionalism, maintain full confidentiality of or about our clients and offer affordable service fees.  

 

To gain more details on Court Marriage in Nepal or Marriage Registration in Nepal – Get in touch with us by e-mail at info@lawchintan.com or call us at +977 1 5364011 or +977 9851133809.

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Watch these YouTube videos posted on Court Marriage in Nepal:

Court Marriage in Nepal: What’s New in 2022?? Let’s Talk!! – YouTube

सर्वोच्च अदालत नेपाल (supremecourt.gov.np)

Learn about divorce process instead? Divorce in Nepal – Exclusive 3 Mins Read – Chintan Law Associates (lawchintan.com)

Foreign Direct Investment in Nepal / Registration of Company by Foreigners in Nepal – Exclusive 3 Mins Read

Foreign Direct Investment in Nepal / Registration of Company by Foreigners in Nepal – Exclusive 3 Mins Read

-Foreign Direct Investment in Nepal / Registration of Company by Foreigners in Nepal #Updaetd on 30 March  2023

Legal

Foreign investors can invest in a permissible industry in Nepal by obtaining the FDI approval from the Government of Nepal . The Foreign Investment and Technology Transfer Act, 2019 (Act) is the governing Act to regulate FDI in Nepal. The Act imposes restrictions on certain industries for foreigners. The minimum capital requirement for foreign person or entity is NPR 20 million (approximately USD 155,000).

POSSIBLE WAYS FOR FOREIGN DIRECT INVESTMENT IN NEPAL

– Investment in an existing company through Share Purchase Agreement

– Investment in a new company (Equity – Wholly Owned)

– Investment in a new industry (Equity – Joint venture)

– Technology Transfer

RESTRICTED INDUSTRIES FOR FOREIGN DIRECT INVESTMENT IN NEPAL

Retail Business (Trading, local stores, wholesale and retail shops)

Travel & Tour (Travel agencies, Trekking, Mountaineering and Expedition, Rafting etc.)

Security Printing (Printing of coins, bank notes, bonds etc.)

Film Industry (Investment in a movie production company)

Arms and Ammunition Industries

Real Estate Business (excludes construction) (Purchasing and selling of lands, buildings, housings etc)

Internal Courier Service

Gun Power and Explosives

Bank notes and coins

Atomic Energy

Poultry

Fisheries

Bee Keeping

Beauty Parlor

Local Catering Services

Consultancy services

VISAS AND PERMITS

Government of Nepal provides various visa facilitations for foreign investors or their representatives/directors. Following visas are available to investors:

Business Visa

Dependent Visa

On the recommendation of the Department of Industry, the Department of Immigration grants Business Visas to the investor or representative of investors (in case of corporate investor). The dependents (spouse and children) of investor or their representatives are entitled to obtain dependent visa. The Business Visa and Dependent Visa are issued for a year and can be renewed until the operation of the industry in Nepal.

REPATRIATION

Foreign investors can repatriate profits (dividend) generated by the operation of industry in Nepal after deducting dividend tax. The law doesn’t allow investors to repatriate within one year of investment. Before repatriation, the investors have to obtain approval from the central bank (NRB). NRB only allows repatriation for investors who have fully complied with the due process of FDI. It is therefore very crucial to abide by the due process of FDI.

TAX RATES

Corporate Tax @ 25%

Capital Gains Tax @ 10%

Dividend Tax @ 5%

Windfall Gain Tax @ 25%

V.A.T. @ 13%

FACILITIES AND INCENTIVES FOR FOREIGN INVESTORS

Work permits: Government of Nepal provides facilities of working visas and permits for foreigners (experts). Usually work permit is given to a foreign individual for the technical and expert knowledge, a knowledge or experience, which is not available from among the Nepalese manpower. On the recommendation of DOI, the Department of Labor issues work permits to eligible foreign individual for 1 year that can be renewed for 3 years. Foreigners obtaining work permits are issued Non-Tourist Visa. The number of foreign employees working in a company cannot exceed 5% of the total number of employees.

Tax Concessions: Industrial Enterprise Act, 2017 provides various concessions on tax.

EMPLOYMENT & LABOR

All the employees to be provided with employment contract.

Salary to be categorized in to basic salary and allowance.

Provident Fund: 10% of basic salary to be deducted and 10% to be added by employer and deposited in the Social Security Fund (SSF).

Gratuity: 8.33% of basic salary each month to be contributed by employer and deposited in SSF.

Medical and Accidental insurance facilities for employees.

Learn about Company Registration in Nepal

Company Registration in Nepal – 3 Exclusive Details

If you want to learn more about Foreign Direct Investment in Nepal, feel free to contact us at info@lawchintan.com or call us at +977 9851133809.

 

 

Company Registration in Nepal – Exclusive 3 Mins Read

Company Registration in Nepal – Exclusive 3 Mins Read

Types of company

Private Limited

Public Limited

Foreign Branch Company

Liaison Office

Profit not Distributing Company

Ownership Structure

Single Ownership

Joint Venture

Subsidiary company

Documents Required for Company Registration in Nepal

– Application for registration

– Proposed Memorandum of Association

– Proposed Articles of Association

– Citizenship of promoters (for Nepalese citizens)

– Incorporation documents of holding company (only for subsidiary company)

– Power of Attorney

Documents Required for Company Registration in nepal

“For Foreign Individual/Company”

Application for registration

Proposed Memorandum of Association

Proposed Articles of Association

Passport of promoters/representatives

Board decision of foreign holding company (for subsidiary company registration)

Recommendation from government authority in Nepal

Incorporation documents of holding company (for subsidiary company registration)

Power of Attorney

Government Revenue for Company Registration in nepal

Company registration government revenue depends upon the authorized capital of the proposed company. Below are the government revenue rates for company registration in Nepal. The latest foreign exchange rates can be viewed at (www.nrb.org.np).

Up to NPR 100,000 = NPR 1,000

Above 100,000 up to NPR 500,000 = NPR 4,500

Above NPR 500,000 up to NPR 2,500,000 = NPR 9,500

Above NPR 2,500,000 up to NPR 10,000,000 = NPR 16,000

For Authorized Capital above NPR 10,000,000 = NPR 3,000 is added to each Ten Million.

 

Contact Us – Chintan Law Associates (lawchintan.com)

 

FDI Rules in Nepal- Executive Summary of Foreign Investment and Technology Transfer Regulation – Exclusive 7 Mins Read

FDI Rules in Nepal- Executive Summary of Foreign Investment and Technology Transfer Regulation – Exclusive 7 Mins Read

FDI Rules in Nepal – Executive Summary of Foreign Investment and Technology Transfer Regulation – Exclusive 7 Mins Read

Contact Us – Chintan Law Associates (lawchintan.com)

Foreign Investment and Technology Transfer Regulations or FDI Rules was effectively enforced in 2021 by the Government of Nepal while exercising the rights granted by Section 51 of the Foreign Investment and Technology Transfer Act, 2019 (2075). This article provides an Executive Summary of the FDI Rules by highlighting the major provisions.

  1. Who are eligible to make foreign investments (FDI) in Nepal? Any foreign individual, firm, company, Non-resident Nepali or foreign government or international agency or other corporate body of similar nature.
  2. What are the types of Foreign Investment (FDI)?
    – Share investment in foreign currency
    – Re-investment in an industry of dividends derived from foreign currency or shares
    – Lease investment
    – Investment made in venture capital fund
    – Investment made in listed securities through secondary securities market
    – Investment made by purchasing shares or assets of a company incorporated in Nepal
    – Investment received through the banking channel after issuing securities in a foreign capital market by an – Industry or company incorporated in Nepal
    – Investment made through technology transfer
    – Investment maintained by establishing and expanding an industry in Nepal.
  3. How to make Foreign Investment (FDI)in Nepal? The Foreign Investor may make foreign investments (FDI) by purchasing assets or 100 percent shares of the industry established in Nepal. However foreigners can’t make investment in the industry restricted by the Government of Nepal. The Foreign Investor may make lease investment in the aircraft, ship, machinery, appliances, construction equipment or other similar.
  1. What are the industries or businesses restricted for foreign investments (FDI)?
Industries Restricted for Foreign Investment
S.N. Types of Industry

1

Poultry farming, fisheries, bee-keeping, fruits, vegetables, oil seeds, pulse seeds, milk industry and other sectors of primary agro-production

2

Cottage and small industries

3

Personal service business (hair cutting, tailoring, driving etc.)
4 Industries manufacturing arms, ammunition, bullets and shell, gunpowder or explosives, and nuclear, biological and chemical (N.B.C.) weapons; industries producing atomic energy and radio-active materials

5

Real estate business (excluding construction industries), retail business, internal courier service, local catering service, moneychanger, remittance service

6

Travel agency, guide involved in tourism, trekking and mountaineering guide, rural tourism including home stay

7

Business of mass communication media (newspaper, radio, television and online news) and motion picture of national language

8

Management, account, engineering, legal consultancy service and language training, music training, computer training

9

Consultancy services having foreign investment of more than fifty-one percent
  1. Royalty Amount: The royalty amount or other fees related to the technology transfer for the preparation of the industry’s operation shall be based upon the agreement entered in between two parties.
  2. How to establish a Branch Industry? If any industry established in a foreign country is willing to establish or expand its branch industry in Nepal, then it has to be approved as a foreign investment and it shall be registered or extended as a branch industry by incorporating an industry.
  3. How to make an application for FDI? Any foreign investor willing to invest in any industry shall submit an application before the authority approving the foreign investment. Electronic submission may be made.
  4. What are the documents required for FDI? The following details and the documents are required:
S.N. Documents Copies

1

Project Proposal including Action Plan of the investment 2 copies

2

In case of more than one investor, a joint investment agreement between them 2 copies

3

Where the foreign investor is a natural person, a copy of passport and personal details (Biodata) of that person 1 copy

4

Where the foreign investor is a company, a certificate of registration of incorporation that company in the related country, Memorandum of Association, Articles of Association, documents that reflects Director and Shareholders, company’s profile and the decision of the Board of Directors of the company regarding the investment in Nepal 1 copy

5

Where the foreign investor is a firm, then the certificate of registration of incorporation of that firm and in the case of partnership, the document reflecting partnership details and the decision of the partners regarding the investment in Nepal and profile of the firm 1 copy

6

Where the foreign investor is a foreign citizen of Nepali Origin or Nepali citizen residing in a foreign country, the document proving the same. 1 copy

7

Where the foreign investor is an international organization, a constitution of the  organization, document revealing the identity of the directors, profile of the organization and an organizational decision regarding the investment in Nepal 1 copy

8

If the foreign investor is not able to attend, a copy of power of attorney given by them and the document revealing the identity of an Attorney 1 copy

9

Financial Creditability Certificate of a foreign investor issued by the related foreign bank. 1 copy

10

Any other details and documents requested pursuant to a decision by the authority approving the foreign investment 1 copy
  1. What is the required time-limit? Within 7 days. If rejected, rejection notice shall be given no later than 7 days after the date of decision.
  2. Time schedule for Foreign Investment: The foreign investor getting an approval for the foreign investment has to bring in the following foreign investment within one year after the date of such approval:
Category of Foreign Investor Investment Amount Percentage of Investment
Foreign investor Minimum Amount (USD) At least 25% amount
Ordinary Foreign Investor above the minimum required amount and up to 250,000,000 rupees At least 15% amount
Distinguished Foreign Investor above 250,000,000 rupees and up to 1,000,000,000 At least 10% amount
Highly Distinguished Foreign Investor above 1,000,000,000 At least 5% amount
  • The foreign investor shall bring in at least 70% of the approved investment before the commencement of an industrial production or operation of the industry or enterprise of their investment.
  • The remaining 30% shall be invested within 2 years after the commencement of an industrial production or operation of such industry or enterprise.
  • Any foreign investor making an investment by purchasing the shares of any industry in operation shall bring in such foreign investments within a year of the approval of the foreign investment.
  • The industry with an approval of a foreign investment and which is in operation during the enactment of this regulation if unable to bring in investment, shall get an approval and bring in foreign investment within six months.

What happens in case of Share Sale or Transfer of Title to Share? If the property, assets or share or any other financial equipment accumulated out of foreign investments by any company in Nepal, is for sale, transfer of title or change in the ownership or vested ownership of the structure, then in order to maintain record of the details at the authority approving the foreign investment, such company shall submit within 30 days after the date of operation an application along with the following details and documents:-

  1. A copy of an agreement relating to the company’s property or asset or Share Sale and Purchase Agreement and a certified document that reveals the transaction of the above,
  2. A document certified by an Auditor that reveals the share value of the company and a copy of Audit Report,
  3. In the case of repatriation out of Share Sale and Purchase or Transfer of title of the company, any work schedule,
  4. Any evidence showing that the company has paid-up tax and liability to the Government of Nepal as per the prevailing law of Nepal,
  5. Updated Share Log Book of such company situated in Nepal.

Repatriation: Any foreign investor has to submit an application to repatriate their foreign investment (FDI) with the following documents:-

S.N. Documents

1

The decision of the General Meeting and Board of Directors of the Company relating to the repatriation of the investment by the foreign investors or earnings out of such investments

2

Share Log Book and Directors’ Log Book verified by the Office of the Company Registrar

3

Company’s previous fiscal year Audit Report and Certificate of Tax Clearance

4

Proof showing the foreign investment by the concerned investor

5

In case of the amount received out of Share Sale of the foreign investment, a copy of the approval letter of the Share Sale and a copy of approved Share Sale and Purchase Agreement

6

Profit from the foreign investment or dividend amount,  a decision of the General Meeting of the Company regarding such distribution, a proof of distribution of bonus as per the prevailing law and the Audit Report of that fiscal year

7

In the case of payment of the Lease Investment pursuant to the Lease Agreement, the related documents

8

In the case of payment of damage or compensation amount pursuant to final decision regarding the case filed in Nepal, Arbitration or any other legal proceedings, the related documents

9

In the case of royalty amount, the related documents

10

Proof of the record of the detail of sale of earned property in Nepal or transfer of title

11

Any other essential documents required by the authority approving the foreign investment.

How can you get a Visa Facility by FDI?

Types of Visa Eligibility Documents Required
Business Visa The foreign investor or his/her authorized representative and the family members or his/her authorized representative of such investor

·            If the foreign investor having an approval up to or above 100,000,000 rupees has already brought in 25% of the approved investment

1)      A copy of foreign investment approval letter/ Industry Registration Certificate,

2)      A copy of the passport of the person requesting for visa,

3)      In case of an authorized representative, a letter authorizing representation for the foreign investor,

4)      In case of a family member of  the foreign investor,  a certificate of relationship with the dependents issued by an authorized entity of related country, the Embassy of Nepal or diplomatic mission in such country,

5)      In case of Non-tourist visa, a copy of the executive committee and Labor approval as per the prevailing law.

6)      Power of Attorney, Identity Card, Contact Number of a person with an authority or an authorized person.

Can you acquire land above the land ceiling? Yes. The energy, manufacturing, infrastructure, and minerals based industries with a foreign investment approval can submit an application for the coordination and facilitation to purchase land or any land above the land ceiling. The following details and documents are required:-

  1. A copy of foreign investment approval letter,
  2. A copy of Industry Registration Certificate,
  3. Approved Project Proposal of the industry,
  4. Areas and Location of the land required for the industry,
  5. In case if approval is required, an approval letter from any other authority,
  6. Commitment letter endorsing all the necessary expenses for land acquisition,
  7. Reasons for the industry being unable to purchase or acquire land.

Validity Period of Foreign Investment Approval: The validity period of the foreign investment approval shall remain in effect except in situations where the foreign investment approval becomes ipso facto ineffective or the foreign investment becomes void.

Investment out of Earned Profit: The industry with the foreign investment may make re-investments in the same industry or in any other industry opened for foreign investment, out of earned profits. In the same industry, the investment shall not be less than 10% of the minimum required investment, and in the case of other industries, it shall not be less than the minimum required investment.

Limitation on Repatriation of Royalty Amount or other Fee

A. Limitation on Royalty Amount or other Fee for all kinds of technology transfer of industry.

Royalty In relation to Quantity Sold within Nepal In relation to Quantity of  Foreign Export
If Lump sum Amount or total sale amount Up to 5% of the total sale amount excluding tax Up to 10% of the total sale amount excluding tax
If Royalty out of net profit Up to  15% of net profit Up to 20% of net profit

B. Limitation on Royalty Amount or other fee for the use of trademark

In relation to Quantity Sold within Nepal In relation to Quantity of  Foreign Export
In case of industry relating to the alcohol and tobacco, up to 2% of the total sale amount excluding tax. In case of industry relating to the alcohol and tobacco, up to 5% of the total sale amount excluding tax.
In case of other industry, up to 3% of the total sale amount excluding tax. In case of other industry, up to 6% of the total sale amount excluding tax.

Read about how to register a FDI company in Nepal by clicking the link below:

Foreign Direct Investment in Nepal / Registration of Company by Foreigners in Nepal – Exclusive 3 Mins Read – Chintan Law Associates (lawchintan.com)

To gain more details on FDI or Foreign Investment in Nepal – Get in touch with us at info@lawchintan.com or call us at +977 9851133809.

Disclaimer: The information published on this website is for general information purposes only, and shall not be construed as a solicitation or an offer for an attorney-client relationship.  No one should act or rely upon any information or response to a request for information automatically generated as a result of electronic searches on this website. Chintan Law Associates assumes no liability for such use or interpretation of the subject-matter.

Statutory Timeline of Investment for Foreign Investors in Nepal – Executive Summary – 2 Mins Read

Statutory Timeline of Investment for Foreign Investors in Nepal – Executive Summary – 2 Mins Read

As per Rule 9 (1) of FITTR, 2020, a foreign investor must bring the following percentage of the committed investment within 1 year. The percentage of initial investment is directly proportional with the committed investment.

<span”>Within 1 Year

If the commitment investment is up to NPR 50,000,000 At least 25% investment
If the commitment investment is more than NPR 50,000,000 and up to NPR 250,000,000 crores At least 15% investment
If the commitment investment is more than NPR 250,000,000 and up to NPR 1,000,000,000 At least 10% investment
Above 1 Billion At least 5% investment
As per Rule 9 (2) of FITTR, 2020, 70% of the commitment investment amount must be invested before the commercial operation date and the remaining 30% must be invested within 2 years from the commercial operation date.

For more information please contact us via Email: info@lawchintan.com;  Phone/WhatsApp: (+977) 9851133809 / (+977) 9866556697

Disclaimer: The information published on this website is for general information purposes only, and shall not be construed as a solicitation or an offer for an attorney-client relationship.  No one should act or rely upon any information or response to a request for information automatically generated as a result of electronic searches on this website. Chintan Law Associates assumes no liability for such use or interpretation of the subject-matter.