NRB Eases Dividend Repatriation for Foreign Companies in Nepal

Nepal Rastra Bank (NRB) has revised foreign exchange regulations, allowing companies without regulatory oversight in Nepal to repatriate dividends abroad based on self-declaration.

NRB clarified that companies or branches under regulatory oversight in Nepal must still seek approval from the respective regulatory bodies for profit repatriation. However, entities operating without such oversight can now obtain approval based on their application and self-declaration.

Before repatriating dividends, these transactions must be disclosed and approved by NRB. The revision aims to facilitate profit repatriation for consulting firms and small to medium enterprises that lack regulatory oversight.

Additionally, the 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).

Foreign companies in Nepal, including banks, financial institutions, insurance companies, and entities from sectors other than hydropower, are regulated by bodies like the Department of Industry. NRB's recent revisions aim to streamline processes and enhance the ease of doing business for such entities in Nepal.