KATHMANDU: Companies operating with foreign investment will now be able to obtain foreign exchange facilities from commercial banks for the purpose of repatriating their profits and dividends.

The Nepal Rastra Bank (NRB) has made this provision by making the fifth amendment to the Foreign Investment and Foreign Loan Management Bylaw 2021. The latest amendment does not require approval for foreign currency exchange from NRB for the purpose of repatriating profits earned.

“In the context of foreign investors complaining about the excessive paperwork, an NRB provision has been made that does not require NRB approval to repatriate profits,” said NRB Governor Biswo Nath Poudel.

The NRB has made a new provision that does not require the central bank’s approval to repatriate the amount received from the sale of shares of foreign investment, the amount received as profit or dividend from foreign investment, the amount remaining after the liquidation of an industry or company, and the amount received as royalty under a technology transfer agreement.

However, in the case of royalty or fees for trademark usage under technology transfer in liquor industries other than those that export 100% of their products, it has been stated that the amount of such benefit can be taken only after completing the process as per the provisions of the Foreign Investment and Technology Transfer Regulations, 2021.

The revised regulations have made this provision for the foreign investor or foreign-invested company/industry to apply for foreign currency exchange approval to repatriate investment and earned amount by attaching the necessary documents to the commercial bank where the foreign investor or foreign-invested company has its account.