S & F CONSULTING FIRM LIMITED is an international business consultancy firm. It offers lower cost & high quality service for the clients.
Contact information:
Email: contact@sfconsultingbd.com
Mobile: +880 01790220729 or, +880 01790220728
Corporate Office, Dhaka, Bangladesh
Service area:
- Foreign company registration ( 100 % foreign owned share, Joint Venture, Branch/ Liason / Virtual office)
- Legal
- Accounts Audit
- Income Tax
- Company Secretarial
We are all Countries of Asia
Afghanistan, Armenia, Azerbaijan, Bahrain, Bangladesh, Bhutan, Brunei, Burma (Myanmar), Cambodia, China, Georgia, Hong Kong, India, Indonesia, Iran, Iraq, Israel, Japan, Jordan, Kazakhstan, Korea, North, Korea, South, Kuwait, Kyrgyzstan, Laos, Lebanon, Malaysia, Maldives, Mongolia, Myanmar, Nepal, Oman, Pakistan, Philippines, Qatar, Russia, Saudi Arabia, Singapore, Sri Lanka, Syria, Taiwan, Tajikistan, Thailand, Turkey, Turkmenistan, United Arab Emirates, Uzbekistan, Vietnam, Yemen
Areas allowed for FI in Nepal
Foreign
investors are permitted to own up to 100% equity share in any industries except
the following:
1.
Cottage industries
(except industries using electricity more than 5 kW)
2.
Personal service
businesses (e.g. hair cutting, beauty slaon, tailoring, driving training, etc.)
3.
Arms and ammunition
industries
4.
Gunpowder and
explosives
5.
Industries related to
radio-active materials
6.
Real estate business
(excluding construction industries)
7.
Film industries
(national languages and other recognized languages of Nepal)
8.
Security printing
9.
Bank notes and coins
10.
Retail business (excluding
international chain retail businesses with business in at least two countries)
11.
Tobacco (excluding
more than 90% exportable)
12.
Internal courier
service
13.
Atomic energy
14.
Poultry
15.
Fisheries
16.
Bee keeping
17.
Consultancy services
(e.g. management, accounting, engineering, legal services); (Maximum of 51% FI
is allowed)
18.
Processing of food
grains on rent
19.
Local catering
Services
20.
Rural tourism
Entry Conditions on Investment
FITTA
1992 allows foreigners to invest only in private limited companies and in
public limited companies registered with the Company Register Office (CRO).
They are not allowed to invest in proprietorship or partnership firms.
"Private Limited Company" means a company which by its articles:
1.
Limits the number of
its shareholders from 1 to 50, excluding persons who are in the employment of
the company, and
2.
Prohibits any
invitation to the public to subscribe in its shares.
"Public Limited Company" means a company that:
1.
Has a minimum number
of 7 shareholders (there is no maximum limit), and
2.
Offers shares and
debentures to the public through a prospectus which complies with the
requirements of the Companies Act 2006 and Securities Act 2007.
FDI Approval process of Nepal
Present FDI Approval process
·
Once the applicant
submits the application with required documentation at the registration unit,
it goes to the Director General who then forwards it to the FDI Director.
·
The documents are
assessed by the officers and staff at the FDI section.
·
The application is
presented in the FDI approval committee.
·
Copies of the project
reports must be sent to the License Director and Technical Director prior to
the meeting.
·
The members of the
committee study the documents, discuss it objectively, and express their
concerns, if any.
·
Even if there are
concerns expressed or other documents to be received, the applications are
generally recommended for final approval with the condition that the concerns
are addressed and the documents received.
·
Once these conditions
are fulfilled, the application is sent to the Director General for final
approval. It takes 5-10 days for FDI approval, from the application date.
FDI Approval Procedure
After
obtaining approval for foreign investment, the industry is required to apply
for registration of industry at the DOI within 35 days. If the registration
cannot be done within the stipulated time, the investor will have to apply for
an extension of the validity period.
Note: If the capital investment is more than NRs. 10 billion, the
Investment Board can directly deal with the investor, and the procedure will be
followed accordingly.
Foreign Equity Investment in a New Industry
Documents required:
|
||
SN
|
Document
|
No. of Copies
|
1
|
Project Report
|
3
|
2
|
Joint Venture
Agreement (JVA), in case of more than one investor
|
3
|
3
|
Citizenship
certificate of local party or Certificate of Incorporation, including
Memorandum of Association and Articles of Association if the local party is a
company
|
1
|
4
|
Copy of passport of
foreign party or Certificate of Incorporation, including Memorandum of
Association and Articles of Association if the party is a company
|
1
|
5
|
Bio-data / Company
profile of the foreign party
|
1
|
6
|
Financial Credibility
Certificate (FCC) of the Foreign Investor provided by a home country bank or
domiciled country bank
|
1
|
7
|
Authority letter from
the concerned companies or individuals to carry out any necessary work on
their behalf, if applicable
|
|
Deposits and Fees
The
fees need to be deposited at the time of Foreign Investment Approval, and are
refundable after the operation of industry.
(Amount in Nepalese Rupees)
Range of Fixed Asset
|
Deposit
|
Fixed assets less than
or equal to 2,500,000
|
4,000
|
2,500,000 less than
(Fixed assets) less than or equal to 5,000,000
|
7,000
|
5,000,000 less than
(Fixed assets) less than or equal to 10,000,000
|
10,000
|
10,000,000 less than
Fixed assets
|
20,000
|
The
amount shall be deposited at the Nepal Rastra Bank Account number SA.A. 131232
The
non-refundable fees for the Company Registration:
Range of Authorized Capital
|
Fee
|
500,000 less than
(Authorized Capital) less than or equal to 2,500,000
|
9,500
|
2,500,000 less than (Authorized Capital) less than or equal to 10,000,000
|
16,000
|
10,000,000 less than (Authorized Capital) less than or equal to 20,000,000
|
19,000
|
Similarly,
an additional fee will be calculated at the rate of NPR 30 per NPR 100,000 of
authorized capital.
Technology Transfer
Technology
transfer is possible even in areas where foreign investment is not allowed.
Forms
of Technology Transfer to be made under an agreement between an industry and a
foreign investor include:
1.
Use of any
technological right, specialization, formula, process, patent or technical
know-how of foreign origin;
2.
Use of any trademark
of foreign ownership; and
3.
Acquisition of any
foreign technical consultancy, management and marketing service.
Documents required:
|
||
SN
|
Document
|
No. of Copies
|
1
|
Technology Transfer
Agreement (TTA)
|
3
|
2
|
Citizenship
certificate of local party or Certificate of Incorporation, including Memorandum
of Association and Articles of Association, if local party is a company
|
1
|
3
|
Copy of passport of
foreign party/or Certificate of Incorporation, including Memorandum of
Association and Articles of Association, if the party is a company
|
1
|
4
|
Bio-data / Company
profile of the foreign party
|
1
|
5
|
Industry Registration
Certificate
|
1
|
6
|
Copy of the minutes of
the Board of the recipient company
|
1
|
7
|
Authority letter from
the concerned companies or individuals to carry out any necessary work on
their behalf, if applicable
|
|
Foreign Investment in an Existing Industry by
Share Transfer
Documents required:
|
||
SN
|
Document
|
No. of Copies
|
1
|
Request from the share
transferor
|
|
2
|
Request from the share
transferee
|
|
3
|
Share Transfer
Agreement
|
3
|
4
|
Copy of minutes of the
Board meeting of Nepalese company regarding inclusion of foreign investor
into the company
|
1
|
5
|
Copy of minutes of
Board meeting, Certificate of Incorporation and company profile of the
foreign party if the party is a company
|
1
|
6
|
Copy of passport and
Bio-data of foreign party, if party is an individual
|
1
|
7
|
Financial Credibility
Certificate of the Foreign Investor provided by a bank
|
1
|
8
|
Current Share Holders’
List as certified by the Company Registrar’s Office
|
1
|
9
|
Auditor’s Report
|
1
|
10
|
Tax clearance certificate
|
1
|
11
|
Authority letter(s)
from the companies concerned to sign on behalf of the companies
|
|
Industries Permissible for Foreign Investment
Industry Category
|
Maximum FDI Permissible
|
Name of the competent authority (Regulator)
|
Relevant Acts & Policies
|
Remarks
|
Manufacturing
|
100%
|
Department of Industry
|
Industrial Enterprises
Act, 1992
|
No additional
procedures required except for certain industries which required special
permission
|
Financial
Services/Banks and Finance Companies and Branch Office of a Foreign Bank
|
(20 to 85)%
|
Nepal Rastra Bank
|
Nepal Rastra Bank Act
Foreign Investment and Technology Transfer
Act (FITTA)
Foreign Exchange Regulation Act (FERA)
|
Approval of Nepal
Rastra Bank required thereafter, registration of the company is to be done
and application filed for license to operate a bank, or financial institution
|
Airline Industry
|
(49 to 95)%
|
Civil Aviation
Authority of Nepal
|
The Aviation Policy 2063 (2006)
Civil Aviation Act, 2053, Civil Aviation
Rules, 2052 (1996)
|
FDI is permissible in
domestic airlines, international airlines, flying schools and repair and
maintenance work
|
Telecommunications
|
80%
|
Nepal
Telecommunication Authority, Ministry of Information and Communication
|
Telecommunication Act
|
Approval of Nepal
Telecommunication Authority is required to operate services and obtain
license prior to operation
|
Roads, Ropeways, Cable
car
|
100%
|
Transport Management
Office
|
-
|
-
|
Media &
Advertising – TV, Radio and Newsprint
|
100%
|
Ministry of
Information and Communication
|
The Nepal Broadcasting Regulation, 2052
(1995)
National Broadcasting Act 2049 (1993)
|
The MOCI and NTA
provides license for establishing media and broadcasting business in Nepal
|
Pharmaceutical &
Chemical Industries
|
100%
|
Department of Health
Services
|
Industrial Enterprises
Act Drug Act
|
Approval from the
Department of Drug Administration for setting up the industry, manufacturing
and selling the drug is required
|
Textile and Garment
|
100%
|
Department of Industry
|
Industrial Enterprises
Act
|
No specific
requirements
|
Agriculture and Dairy
|
100%
|
Ministry of
Agriculture and Co-operatives
|
-
|
No specific
requirements
|
Consultancy and
Management Services
|
51%
|
No Specific
|
Foreign Investment and
Technology Transfer Act (FITTA)
|
Accountancy,
Engineering, Legal & Management Services not allowed
|
Mining
|
100%
|
Department of Mines
|
Department of mines and Geology (Department)
Act
Mines and Minerals Act, 2050 (1993)
Mines and Minerals Regulations, 2056 (1999)
|
License from the
Department of Mines has to be obtained for mining activities in Nepal
|
Hydro-Power Generation
|
100%
|
Department of
Electricity Development
|
Electricity Act
Electricity Rules
|
Approval from the DOED
is required prior to operation of the industry
|
Power Trade
|
-
|
Department of
Electricity Development
|
Electricity Act
Electricity Rules
|
Export of power to
India is permitted for companies generating electricity
|
Transmission Lines
|
100%
|
Department of
Electricity Development
|
Electricity Act
Electricity Rules
|
-
|
Hotels, Resorts &
Restaurant
|
100%
|
Ministry of Tourism
|
Tourism Policy,
Tourism Act
|
Approval from the
Department of Tourism required for operating restaurant, hotels, resorts
|
IT & IT enabled
(BPO, KPO)
|
100%
|
Department of Science
and Technology
|
IT Act
|
No specific
requirements
|
Vocational,
Educational Training and Coaching
|
100%
|
No specific
|
Foreign Investment and
Technology Transfer Act
|
Only Skill Training
and Language allowed
|
Hospitals & other
Medical Services
|
100%
|
Ministry of Health
& Population
|
Nepal Health Professional Act,
Nepal Medical Council
|
Approval from the
Ministry of Health is required for establishing hospitals and providing
medical services
|
Recreational Health
Centers
|
100%
|
Ministry of Health
& Population
|
-
|
-
|
Solid Waste Disposal
& Management
|
100%
|
Ministry of
Environment, Science and Technology
|
Environment Protection
Act
|
-
|
Film Industry
|
100%
|
Cinema Board of Nepal
|
Motion picture
(Production, Exhibition and Distribution) Act 2026 (1969) and Rules
|
Film produced in the
language if the nation not allowed (FITTA, 1992)
|
Cargo Industry
|
100%
|
No specific
|
-
|
Domestic Cargo not
permitted under FDI
|
Medical Education
|
100%
|
Ministry of Education
|
MoHP’s Directive on
Establishment, Operation, Standards and Infrastructure of Private and
Non-governmental Health Institution, 2061
|
Affiliation to a
University has to be entered into and approval from the Ministry of Education
required
|
Engineering Education
|
100%
|
Ministry of Education
|
Technical Education
Policy of Ministry of Education
|
Approval is granted
under the Technical Education Policy of Ministry of Education
|
Management Education
|
100%
|
|||
Insurance &
Re-insurance
|
JV Company Branch
Office
|
Insurance Board
|
Insurance Act and
related directives
|
Approval from the
Insurance Board has to be obtained prior to commencement of business in Nepal
|
Construction
|
100%
|
No Specific
|
Local Self Governance
Act
|
Approval from the
Department of Road, Transport and Physical Planning required
|
Thermal &
Alternative/ Renewable energy
|
100%
|
Ministry of Energy
|
Electricity Act
|
Allowed only in Energy
Generation
|
Source : Nepal-India Chamber of Commerce and
Industry – Doing Business in Nepal (A Guide for Indian Investors)
No comments:
Post a Comment
We shall be happy if we can help you.