THE FOREIGN INVESTMENT AND TECHNOLOGY TRANSFER
Date of Authenticationand publication
Amendment Acts 27 kartik 049 (12 Nov. 1992)
AN ACT MADE TO PROVIDE FOR MATTERS RELATING TO FOREIGN
INVESTMENT AND TECHNOLOGY TRANSFER
Preamble Whereas, in the process of industrialization of the country, it is expedient to promote foreign investment and technology transfer for making the economy viable, dynamic and competitive through the maximum mobilization of the limited capital, human and the other natural resources.
Be it enacted by Parliament in the twenty first year of the reign of His Majesty's King Birendra Bir Birkram Shah Dev.
1. Short Title and Commencement: (1) This Act may be called "The Foreign Investment And Technology Transfer Act, 2049 (1992)"
(2) This Act shall come into force immediately .
2. Definitions: Unless the subject or context otherwise requires, in this Act:
♣ It came into force on 18 kartik 2054.
investor in any industry"
3. Permission to be Obtained: (1) Permission of the Department shall be required
to be obtained for foreign investment or technology transfer.
(2) A person desiring to avail the foreign investment or technology transfer shall be required to make an application to the Department in the prescribed form along with the prescribed particulars for obtaining permission in that behalf. ∇(3) If an application is made pursuant to Sub-section (2) the Department shall, in the case of an industry with fixed assists up to five hundred million rupees, itself, and in the case of an industry with fixed assets in excess thereof, in accordance with the decision of the Board, grant permission within thirty days from the date of application. The Department shall communicate the decision made in regard to such permission to the applicant. ∇ (4) Notwithstanding anything contained in Sub-section (1) and (2) no permission shall be granted for making foreign investment in the industries set forth in the Annex.
Provided that permission may be granted for the transfer of technology in such industries.
∇ Amendment by first Amendment ∇ Amendment by first Amendment × Repeal by first Amendment ∞ Repeal by Some Nepal Laws revision Act, 2057 ⊕ Repeal by Income Tax Act, 2058
(2) A foreign investor making investment in foreign currency shall be
entitled to repatriate the following amount outside Nepal:
a) The amount received by the sale of the share of foreign investment as a whole or any part thereof.
b) The amount received as profit or divided in lieu of the foreign investment.
c) The amount received as the payment of the principal of and interest on any foreign loan.
(3) A foreign investor shall be entitled to repatriate outside Nepal the amount received under an agreement for the transfer of technology in such currency as set forth in the concerned agreement.
6. Provisions Relating to Visa: (1) A foreign national visiting Nepal in connection with undertaking any study or carrying out any research with the objective of making investment in Nepal shall be provided a non tourist visa for up to six months.
∇ (2) A foreign investor or dependent family or authorized representative of such a foreign investor and department family of such authorized representative shall for the purpose of stay in Nepal be provided a business visa until the foreign investment is retained.
Provided that a foreign investor who, at a time, makes investment in an amount no less than one hundred thousand United States dollar or in convertible foreign currency equivalent thereto, and his/her dependent family shall be granted a residential visa until such investment is retained.
∇ Amendment by first Amendment
7. Settlement of Disputes: (1) If any dispute arises between a foreign investor,
national investor or the concerned industry, the concerned parties shall be required to settle the dispute by mutual consultations in the presence of the Department.
♠(4) Notwithstanding anything contained in Sub-sections (1), (2) and (3) above, disputes arising in regard to foreign investment made in the industries with investment as prescribed may be settled as mentioned in the foreign investment agreement.
♠ Inserted by First amendment .
(2) All acts performed or action taken under the Foreign Investment and Technology Act, 1981 shall deemed to have been performed or taken under this Act.
(Relating to Sub-section (4) of Section (3) Industries not to be granted permission for making foreign investment)
™ 17. Local Catering Service ™ 18. Rural tourism
™
Inserted by a notification published in the Nepal gazette dated 2058.5.21