Chapter-4 Promotion, Facilitation and Regulation of Foreign Investment

Chapter-4 Promotion, Facilitation and Regulation of Foreign Investment

  1. Functions, duties and powers of the Board: In addition to its functions, duties and powers referred to, elsewhere in this Act, other functions, duties and powers of the Board shall be as follows:

(a)        To give suggestions to the Government of Nepal for such policy, institutional and procedural reforms as may be required to be made for the attraction of foreign investment in industrial and infrastructure development,

(b)        To set such strategies and programs as may be required for the enhancement of attraction of foreign investment in Nepal and promotion and protection thereof,

(c)        To give approval for the establishment of industries and infrastructures with foreign investment, and promote foreign investment,

(d)       To facilitate for foreign investment by enhancing, expanding and protecting foreign investment,

(e)        To make coordination at the policy and implementation levels of foreign investment,

(f)        To assist in the implementation of policies and laws relating to foreign investment,

(g)        To make arrangements for the provision of services to foreign investors from the Single Stop Service Centre,

(h)        To obtain information as to whether activities of giving approval for foreign investment and delivery of services have been carried out properly, and give necessary direction to the concerned body,

(i)         To make facilitation, if there arises any problem in respect of the repatriation of foreign investment or amount earned, as referred to in Section 20 or implementation of this Act or the rules framed under this Act,  in that respect,

(j)         To perform, or cause to be performed, such other functions as prescribed.

  1. Functions, duties and powers of the Department: In addition to the functions, duties and powers referred to, elsewhere in this Act, other functions, duties and powers of the Department shall be as follows:

(a)        To create conducive environment for the establishment and operation of industries to be established with foreign investment,

(b)        To facilitate foreign investors to obtain any approval or permission including initial environmental assessment, environmental impact assessment in accordance with the prevailing law,

(c)        To maintain updated records of foreign investments approved or permitted in accordance with this Act or the prevailing law and of the technology transferred in Nepal, update such records and make the same public periodically,

(d)       To give approval for foreign investors, and foreigner experts, technicians or managerial employees who are engaged in the industries with foreign investment pursuant to Section 27 to repatriate investment and remuneration,

(e)        To make and enforce Standard Operating Procedures in order to make foreign investment transparent and to make procedural simplification,

(f)        To make recommendation for visas to the foreign investors and their authorised representatives, and foreign experts, technical or managerial employees engaged in industries with foreign investment in accordance with Section 27 and minor members of their family, and make facilitation for that purpose.

(g)        To make regular supervision and monitoring as to whether any industry with foreign investment has misused any facility granted in accordance with this Act,

(h)        To facilitate industries with foreign investment in establishing industries in an industrial zone or special economic zone,

(i)         To perform, or cause to be performed, such other functions as prescribed.

  1. Services to be provided through the Single Stop Service Centre: (1) The Government of Nepal may make necessary arrangement so that exemptions, facilities, concessions or services to be provided to the foreign investors in accordance with this Act and other prevailing law are provided through the Single Stop Service Centre.

(2)        In managing the services to be provided through the Single Stop Service Centre pursuant to sub-section (1), necessary provision shall be made so that the following services are provided gradually:

(a)        Registration and administration of industries,

(b)        Approval of foreign investment and loan,

(c)        Registration and administration of companies,

(d)       Labour permit,

(e)        Visa facility,

(f)        Testing and control of quality of goods produced by industries,

(g)        Approval of environmental study report,

(h)        Energy and infrastructure development, and necessary coordination for that purpose, as well as focal point among other bodies,

(i)        Exemptions, facilities to which industries are entitled,

(j)         Provision of permanent account number,

(k)        Foreign exchange approval,

(l)         Any service related to such other functions as may be required to be performed for industries in accordance with this Act and the Regulation framed under this Act.

(3)        It may be so prescribed that the Single Stop Service Centre may provide other services referred to in the prevailing law, in addition to the services, facilities to be provided pursuant to this Section.