NRB allows non-regulated foreign companies to take profits based on self-declaration

Kathmandu / June 29: Foreign companies without regulatory oversight in Nepal will now be allowed to repatriate dividends abroad based on self-declaration. Nepal Rastra Bank (NRB) has simplified this process by revising the foreign exchange regulations.

NRB clarified that companies or branches with regulatory oversight in Nepal require approval from the respective regulatory bodies for profit repatriation. However, for entities operating without such oversight, approval will be granted based on their application and self-declaration.

Before repatriating dividends, these transactions must be disclosed and approved by NRB. Foreign companies in Nepal include banks, financial institutions, insurance companies, and entities from sectors other than hydropower, regulated by bodies like the Department of Industry.

NRB’s recent revision aims to facilitate profit repatriation for consulting firms and small to medium enterprises lacking regulatory oversight.

Additionally, NRB’s updated guidelines now permit Indians residing in Nepal to remit earnings online to their Indian bank accounts. Under these guidelines, individuals can transfer up to Rs 15,000 per day or Rs 100,000 per month via the Retail Payment Switch (RPS).