Capital Of Rs One Billion Mandatory For Foreign Investment Company

August 29, 2021 | Investopaper

Foreign investment companies should have a minimum of Rs 1 billion in capital. As per the new provision issued by the Ministry of Industry, Commerce and Supplies, the minimum capital for registering or establishing  as an investment company (with foreign investment) is  NRs one billion.

The government has made a legal provision that such companies cannot take loans from Nepali banks and financial institutions. Likewise, they cannot get loans from domestic banks on the basis of guarantee from foreign banks.

Provision has also been made for the foreign investment company to get the approval from the body registering the industry for each investment area. Similarly, when such company registers under an industry, it is required to disclose the type of currency (foreign or Nepali) on which the investment will be made in Nepal.

The approval of Nepal Rastra Bank is mandatory when an investment company brings in foreign investment and takes out money to abroad. Provision has been made for the procedure to be followed in accordance with the prevailing Foreign Investment and Technology Transfer Act when the amount of approved foreign investment is remitted to Nepal.


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