Repatriation by Foreign Investor
Procedure for repatriation of Investment / Return
  • Apply to DOI for approval of repatriation
  • Get Approval letter from DOI
  • Apply to NRB for Repatriation
  • After getting approval from NRB, repatriate the sale proceed/loan/income as the case may be

Repatriation

Approval of Repatriation from DOI
Repatriation on Sale of Shares

For the repatriation of the sale of shares of the foreign investor, he/she or the concerned company must apply to the Department of Industry with the following documents.

  • Application in the prescribed format
  • Copy of the Board of Director’s resolution
  • Updated Share Register from the Office of Company Registrar
  • Updated Directors’ Register from the Office of Company Registrar
  • Latest Audited Financial Statements
  • Latest Tax Clearance Certificate
  • Endorsement letter from NRB as a proof of Foreign investment made and recorded in NRB
  • Approved Share Sale/Purchase agreement
  • Approval letter of Share sale/purchase form DOI/CRO
  • In case company has gone into liquidation, Tax Clearance certificate and the proof of any residual amount
  • Share Valuation Report
  • CIB Report whether blacklisted or not

 

Repatriation of Dividend

Any foreign investor wishing to repatriate his dividend from his investment as per the FITTA 2019 has to obtain approval from the DOI. The foreign investor or the company has to apply to the DOI with the following documents:

  • Application in the prescribed format
  • Copy of the Board of Director’s resolution
  • Updated Share Register from the Office of Company Registrar
  • Updated Directors Register from the Office of Company Registrar
  • Latest Audited Financial Statements
  • Latest Tax Clearance Certificate
  • Endorsement letter from NRB as a proof of Foreign investment made and recorded in NRB
  • Decision of the BOD and AGM for the dividend and Bonus allocation / approval
  • Proof of distribution of bonus to employees as required by the Bonus Act
  • Proof of payment of required tax in the concerned tax office.
  • CIB Report whether blacklisted or not

 

Repatriation of Loan and Interest

The industrial unit with foreign loan (as a part of foreign investment)  has to apply to the DOI for sending out the principal and interest on foreign loan obtained with the approval of DOI along with the following documents:

  • Application in the prescribed format
  • Copy of the Board of Director’s resolution
  • Updated Share Register from the Office of Company Registrar
  • Updated Directors Register from the Office of Company Registrar
  • Latest Audited Financial Statements
  • Latest Tax Clearance Certificate
  • Endorsement letter from NRB as a proof of Foreign investment made and recorded in NRB
  • Letter of approval of the loan agreement
  • Proof of payment of required tax in the concerned tax office
  • CIB Report whether blacklisted or not

 

Repatriation of Technology Transfer Fee /Royalty/ Lease Rental

The industrial unit with approved Technology Transfer Agreement (TTA), trademark license agreement, management agreement, technical assistance agreement can apply to the DOI for the transfer of fees as per the agreement. The company has to submit the calculation of the amount due to the foreign technology supplier certified by the auditor along with the certificate of payment of income tax on royalty as per the prevailing tax rate. Normally Following documents are required:

  • Application in the prescribed format
  • Copy of the Board of Director’s resolution
  • Updated Share Register from the Office of Company Registrar
  • Updated Directors Register from the Office of Company Registrar
  • Latest Audited Financial Statements
  • Latest Tax Clearance Certificate
  • Endorsement letter from NRB as a proof of Foreign investment made and recorded in NRB
  • Approved technology transfer documents along with the calculation of the fees
  • Approved TTA/ lease rent agreement
  • Proof or payment of applicable taxes on royalty/lease rental.

CIB Report whether blacklisted or not

Approval of Repatriation from NRB

After the approval from DOI for repatriation, then the foreign investor can make application to NRB for the repatriation.

Along with the approval letter from DOI, all the documents submitted to DOI for the approval shall also be submitted to NRB for final approval of repatriation.

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