Nepali companies can now pour their bucks in foreign countries!

KATHMANDU, JANUARY 16: The government has introduced a new ordinance permitting Nepali companies to invest abroad. Last Monday, President Ramchandra Paudel, acting on the recommendation of the Council of Ministers, issued four ordinances, which were subsequently published in the Nepal Gazette.

The ordinances include the Ordinance on Economic and Business Environment Improvement and Investment Promotion, the Privatization (First Amendment) Ordinance, the Ordinance on Good Governance Promotion and Social Services, and the Ordinance on Economic Procedures and Financial Accountability.

Among these, the Ordinance on Economic and Business Environment Improvement and Investment Promotion makes key amendments to existing Nepali laws, enabling Nepali companies to invest overseas.

This ordinance revises the Foreign Exchange (Regulation) Act 2019, which previously restricted foreign investments. With the new amendment, companies registered in Nepal are now permitted to invest in foreign markets and generate income from those investments.