Nepali IT companies can now invest up to $1M abroad under the new Nepal Rastra Bank rules. Learn who qualifies, how to apply, and what you can invest in legally.

Imagine this. You’ve built an IT company in Nepal from scratch. You’ve got international clients, steady dollar income, and maybe even a few global ambitions brewing in the back of your mind.

But the moment you think about investing in a foreign startup, opening a satellite office abroad, or partnering with an accelerator overseas, reality hits: there’s no legal way to do it.

Well, not anymore.

In Asar 2082, Nepal Rastra Bank did something that had been long overdue; it made it legal for Nepali IT companies to invest abroad.

With the Fourth Amendment to the Foreign Investment and Foreign Loan Management Bylaws, tech entrepreneurs who’ve been exporting services and earning in foreign currency can now send money out of Nepal; up to 1 million US dollars, or 50% of their 3-year average foreign earnings, whichever is lower.

This is more than a regulatory tweak. It’s a permission slip for Nepali tech founders to finally go global. Not just by serving clients, but by owning pieces of the international tech pie.

If you run an IT company in Nepal, or plan to start one, this is a policy change that directly impacts your roadmap.

So in this guide, we’re cutting through the legal clutter to answer:

• Who qualifies to invest abroad?
• How much can you send?
• What can you invest in?
• What documents do you need?
• How fast will Nepal Rastra Bank respond?
• And what happens after the investment is made?

Let’s start with the most important part: what exactly changed in the law, and why it matters.

What Did Nepal Rastra Bank Change? 

For years, tech founders in Nepal could dream global, code global, earn global, but not invest global.

You could bring in dollars. You could even build a global client base. But if you wanted to put money back out there (into a tech partner, an overseas subsidiary, or a product lab), you were out of luck.

The law simply didn’t allow it.

That’s what the Fourth Amendment to the Foreign Investment and Foreign Loan Management Bylaws fixed.

Nepal Rastra Bank added a new section; Regulation 9A, to the bylaws. It does one big thing:

It allows IT companies in Nepal to invest in foreign tech ventures, using the foreign currency they’ve earned through export of IT services.

Of course, there are guardrails. You must:

• Be registered under Nepali industrial laws
• Have earned foreign currency consistently for the last three fiscal years
• Stay within a cap: USD 1 million or 50% of your average foreign income, whichever is lower

And this is important: the rule applies only to export-based IT companies. This isn’t a blanket green light for all industries. It’s targeted. It’s focused. It’s part of Nepal’s push to strengthen the export-based digital economy.

So what can you actually do with this permission? Can you buy shares in a foreign company? Set up an office abroad? Back a startup in Singapore or Estonia?

Yes, you can. And in the next section, we’ll break down exactly who qualifies, and how you know if your company makes the cut.

Who Can Actually Invest Abroad Under This Rule?

Not every business can take advantage of this new foreign investment window. This isn’t a free-for-all. It’s a very specific, very intentional policy designed to benefit a specific group: IT companies in Nepal that are earning in foreign currency.

So let’s break down what that actually means, and whether your company qualifies.

1. You Must Be an IT Company (Officially)

First things first, this rule applies only to IT companies in Nepal. That means:

• Your company must be registered as an information technology industry under Nepal’s prevailing industrial laws.
• You need to be operating in areas like software development, app design, web services, cloud computing, data management, cybersecurity, or similar IT-related services.

If you run a restaurant, a construction firm, or a trading company, even if you work with tech, this rule does not apply to you.

2. You Must Be Earning Foreign Currency from IT Exports

It’s not enough to be in the IT business. You also need to be exporting your services abroad and getting paid in foreign currency.

More specifically:

• Your company must have earned foreign currency (like USD, EUR, AUD, etc.) through IT-related service exports for at least the last three fiscal years.
• These earnings must be verifiable through bank records and audited financial statements.

This ensures that only companies who are actively contributing to Nepal’s export economy get access to outbound investment rights.

3. Your Investment Limit Depends on Your Past Earnings

The amount you’re allowed to invest abroad depends entirely on your past performance and the company’s paid up capital

You can invest the lesser of:

• 50% of the average foreign income your company earned over the past 3 fiscal years, or
• USD 1 million (or equivalent in other convertible currencies)

Let’s make that crystal clear with an example:

Suppose your IT company in Nepal earned:

• Year 1: $180,000
• Year 2: $200,000
• Year 3: $220,000

That’s an average of $200,000 per year.

Under the rule, you can invest up to 50% of that average = $100,000.
Since $100,000 is lower than the $1 million cap, that’s your maximum limit.

On the flip side, if your 3-year average earnings total $2.5 million, your 50% figure would be $1.25 million, but you’ll still be capped at $1 million, the hard upper limit.

But the catch is that your investment amount should not exceed your paid up capital.

This design is deliberate. It encourages companies to grow steadily and rewards proven exporters, while keeping the outflows within a manageable limit for the economy.

What Can an IT Company in Nepal Invest In?

Alright, now that you know whether your IT company qualifies, let’s talk about what you’re actually allowed to do with this new investment freedom.

Can you buy shares in a random company? Start a clothing business in Thailand? Open a crypto exchange in Dubai?

Not quite.

This rule is laser-focused on the information technology sector. That means your investment must be within the same line of business: IT and tech. Here’s what you can (and can’t) do.

What You Can Invest In

If you run an IT company in Nepal and qualify under the new rule, here are the types of investments that are allowed:

1. Foreign IT Companies

You can invest in a tech company based abroad. This could be:

• A startup in the US, India, Singapore, or elsewhere
• A mature tech business looking for international partners
• A SaaS company or product lab

The investment can be through:

• Equity purchase (buying shares)
• Partnership or joint venture
• Subscription of convertible notes, if legally allowed in that jurisdiction

2. Subsidiaries or Branch Offices

You can use the funds to open your own overseas office or subsidiary. That includes:

• Setting up a private limited company abroad
• Leasing office space and hiring local staff
• Running marketing, product development, or client support operations

This is particularly useful if you want a legal presence abroad for business development, global branding, or client servicing.

3. Accelerators, Incubators, and Innovation Labs

Your IT company can invest in or join:

• Global startup accelerators or incubator programs
• R&D or innovation hubs
• Industry platforms with investment entry fees or equity participation

Just make sure the entity you’re investing in falls under the broader umbrella of tech.

What You Can’t Invest In

You can’t use this facility to:

• Invest in non-tech sectors like real estate, trading, or hospitality
• Speculate in crypto or high-risk financial instruments
• Fund personal investments or unrelated ventures
• Partner with blacklisted or legally non-compliant entities

If Nepal Rastra Bank finds that your investment is being misused or directed outside the tech sector, you could face serious penalties, including being barred from future foreign exchange facilities.

One Last Rule: Bring the Money Back Home

Any profits, dividends, or capital returns from your foreign investment must be repatriated to Nepal through the banking system. This ensures transparency and keeps the national foreign reserve system in check.
Now that you know who qualifies and where you can invest, the next step is getting into the how, the documents you’ll need, the process to apply, and how long it takes.

How to Apply for Foreign Investment: A Step-by-Step Guide for IT Companies in Nepal

So you’ve ticked the boxes. Your IT company in Nepal is export-ready, earning foreign currency, and looking to grow beyond borders.

Now what?

Here’s exactly how to apply for foreign investment permission from Nepal Rastra Bank (NRB), in four clear steps. If followed properly, the central bank promises to make a decision within 15 working days.

Let’s break it down.

Step 1: Get Your Financial Records in Order

Before anything else, Nepal Rastra Bank wants to confirm that your company is financially sound and genuinely earning foreign income from IT services.

So, gather these:

• Audited financial statements for the most recent fiscal year
• Tax clearance or filing certificate from the most recent fiscal year
• Proof of foreign currency income from the last 3 years (bank transfer records, invoices, income summaries)

These documents show that your IT company in Nepal is a legitimate exporter and eligible under Regulation 9A.

Step 2: Prepare the Legal & Corporate Documents

This is where you prove your company exists, is in good standing, and is authorized to make an international investment.

You’ll need:

• Company registration certificate
• PAN (Permanent Account Number) registration certificate
• Memorandum and Articles of Association (MoA & AoA)
• Latest shareholder and director register (from the Office of the Company Registrar)
• Board resolution approving the proposed foreign investment and application for exchange facility
• Declaration from the board or authorized officer stating that all applicable legal requirements (national and international) will be followed, and that the company accepts full responsibility

Also, you’ll need to provide:

• Name, address, and bank account details of the foreign entity or person receiving the investment

Step 3: Prove Your Clean Record

Nepal Rastra Bank doesn’t want to approve investments from companies with questionable ethics or legal complications. So your IT company in Nepal must show a clean record across all key stakeholders.

Here’s what that includes:

For the company, directors, shareholders, and key officers:

• Credit Information Bureau (CIB) clearance showing you’re not blacklisted (document must be recent; within the last 6 months)
• Police clearance certificate if there’s a past criminal record (must show at least 5 years have passed since sentence completion)
• Self-declaration confirming all of the following:
  • You’re a Nepali citizen over 18
  • Not mentally unsound
  • Not bankrupt or under settlement proceedings
  • Not holding any government or public office
  • No history of tax default, money laundering, terrorism financing, or major dishonesty in dealings with banks

This is meant to prevent misuse and ensure only credible IT companies in Nepal benefit from the new foreign investment facility.

Step 4: Submit to Nepal Rastra Bank

Once all your documents are ready, submit your application to the Designated Unit at Nepal Rastra Bank.

Make sure to follow Schedule 16(a) (as referenced in the Bylaws), which lists the required formats and document checklist.

Good to know:
NRB is required to issue a decision within 15 working days of receiving a complete application.

That’s a significant improvement from the past where foreign-related approvals were vague, slow, and confusing.

After You Invest: What Your IT Company Must Do

Getting approval is just the start. Once your IT company in Nepal sends the money abroad, there are a few legal obligations you must follow to stay compliant.

Here’s what you need to do after your foreign investment is made:

1. Submit Annual Financial Reports of the Foreign Entity

Every year, you must send the following to Nepal Rastra Bank:

• Audited financial statements of the foreign company (based on that country’s fiscal year and Nepal’s fiscal year)

If the host country doesn’t require auditing by law, then:

• Submit unaudited statements, and
• Provide a legal document confirming the audit exemption

This keeps NRB updated on how the foreign investment is performing and ensures transparency.

2. Bring Your Earnings Back Through the Banking System

Any money earned from your foreign investment, whether it’s:

• Profits
• Dividends
• Capital gains
• Or even a partial/full repatriation of the investment itself

Must be brought back to Nepal through formal banking channels.

No shortcuts. No informal routes. This ensures that the country’s foreign reserves remain stable and legally tracked.

3. Share Investment Data When Asked

Nepal Rastra Bank may request further data or updates on:

• The performance of your investment
• Any business changes in the foreign entity
• Repatriation plans

You are required to respond and provide these details when asked.

4. Don’t Violate the Rules, Or There Will Be Consequences

Let’s be blunt: this isn’t free money or a loophole. It’s a tightly regulated facility. If NRB finds out that:

• You misused the foreign currency
• Invested in an unapproved sector
• Gave false information in your application

Then you could face:

• Revocation of your investment permission
• Monetary penalties
• Blacklisting or further legal action under prevailing laws

So treat this facility as what it is; a trust-based opportunity to expand globally, not a workaround.

In the next section, we’ll look at the big picture; why this new rule is such a game-changer for IT companies in Nepal, and how it could reshape the country’s tech ecosystem for years to come.

What Happens If You Break the Rules?

So, what if you cut a few corners? What if the money doesn’t go exactly where you said it would?

Here’s the short answer: don’t risk it.

Nepal Rastra Bank has made it easier for IT companies in Nepal to invest abroad, but it has also made the rules extremely clear. And if you violate those rules, there are real consequences.

Let’s walk through what happens if you misuse this facility.

1. If You Misuse the Foreign Currency

Say you get approval to invest in a Singapore-based AI company, but instead use that money to speculate in crypto or buy an apartment, that’s a violation.

Similarly, if you move the funds to a different business without informing Nepal Rastra Bank, that’s a misuse of foreign exchange.

▶ What happens?
NRB can:

• Cancel your investment approval
• Impose penalties under foreign exchange laws
• Report you to other authorities for legal action

2. If You Invest in the Wrong Sector

Remember: this entire facility is only for IT companies in Nepal to invest in tech-related businesses.

If your investment goes into a non-tech sector like construction, hospitality, or trading, even if it’s through a foreign company, you’re in breach of the regulations.

▶ What happens?
Same as above. Plus, it could hurt your company’s long-term credibility with regulators and financial institutions.

3. If You Provide False Information

Let’s say you overstate your foreign earnings, or hide that one of your directors has a criminal history.

That may seem harmless, but to Nepal Rastra Bank, it’s misrepresentation; a serious offense.

▶ What happens?
Nepal Rastra Bank has full authority to:

• Reject your current application
• Blacklist your company for future facilities
• Initiate legal proceedings under multiple laws (including anti-money laundering)

Common Mistakes That Could Get You in Trouble

• Using the money for personal use or crypto
• Investing outside the tech sector
• Hiding a director’s past criminal record
• Submitting an outdated or fake CIB clearance
• Not responding to NRB’s information requests
• Bringing profits back to Nepal through informal channels

Play It Safe, Play It Smart

If you’re running an IT company in Nepal, this is a major opportunity. But it’s not a loophole. It’s a responsibility.

Follow the rules. Stick to your approval terms. Use the investment facility for exactly what you declared. And you’ll not only benefit your own company, you’ll help build trust in Nepal’s growing digital economy.

Why This Is Revolutionary for an IT Company in Nepal

Let’s zoom out for a second.

For years, the biggest frustration among IT founders in Nepal wasn’t lack of talent or clients, it was the inability to scale globally. You could export your services. You could grow your revenue. But you couldn’t invest. You couldn’t build a true international footprint.

That era is over.

This amendment signals something bigger than just a policy tweak. It marks a mindset shift from limiting outward flows to empowering tech-driven global growth.

1. Nepali Tech Can Now Compete on a Global Playing Field

With this new regulation in place, an IT company in Nepal can:

• Set up a regional office in Dubai, Bangalore, or Singapore
• Co-invest in a US-based product startup or accelerator
• Build a physical presence in international markets without relying on foreign partners
• Explore R&D partnerships in innovation hubs across Europe or Southeast Asia

This isn’t just about money, it’s about visibility, credibility, and ownership.

2. From Service Providers to Global Stakeholders

Historically, Nepal’s tech ecosystem has been service-heavy. We build for others. Now, with legal outbound investment, we can start owning pieces of the global ecosystem.

Imagine:

• A Nepali startup helping build the next AI unicorn in Canada
• A Kathmandu-based firm co-founding a product studio in Berlin
• A company in Lalitpur opening a client delivery center in Tokyo

These stories weren’t legally possible before. Now they are.

3. It Aligns with Nepal’s Long-Term Vision

This reform ties into larger national goals like:

• Strengthening Nepal’s export base
• Positioning the country as a digital innovation hub
• Earning and retaining foreign currency through high-value services
• Supporting the growth of a knowledge-based economy

By unlocking outward investment, the government is betting on the global potential of every scalable IT company in Nepal. And that’s a bet worth making.

If you want to get a clear picture of just how much the government wants to support export-based IT companies in Nepal, check out the 75% tax rebate policy.

Now, we’ll wrap up this guide with a quick summary of the key points, a few frequently asked questions, and a final word on what this means for the future of Nepal’s tech sector.

Key Takeaways

Here’s a quick summary of everything we’ve covered so far. If you’re short on time or just want the main points, this section’s for you.

• The Fourth Amendment to the Foreign Investment and Foreign Loan Management Bylaws now allows IT companies in Nepal to invest abroad legally.
• To qualify, your company must:
  • Be officially registered as an IT company in Nepal
  • Have earned foreign currency from export of IT services for at least the past 3 fiscal years
• The maximum investment allowed is the lesser of:
  • 50% of your company’s average foreign income from the last 3 years, or
  • USD 1 million
  • And this amount should not exceed the paid up capital of your company
• Your investment must be in the IT sector only (foreign tech companies, subsidiaries, or accelerators)
• Required documents include audited financials, tax clearance, legal declarations, and clean records for key stakeholders
• Applications are reviewed by Nepal Rastra Bank within 15 working days
• After investing, you must:
  • Submit annual financial reports of the foreign entity
  • Repatriate profits or returns through formal banking channels
  • Respond to NRB’s requests for updates or data
• Misuse of the facility, false reporting, or illegal investments can lead to penalties and legal action

If you run an IT company in Nepal and are looking to scale globally, this is your window.

Frequently Asked Questions

Let’s answer some of the most common questions IT founders might have about this new rule.

1. Can any company in Nepal invest abroad under this rule?

No. This facility is exclusively for IT companies that are registered under Nepal’s industrial laws and have a verified record of foreign currency earnings from service exports.

3. Can I invest in a non-IT sector or diversify abroad?

No. The rule strictly limits investment to the information technology sector only. Any investment outside this scope is considered a violation.

4. Can I use the money to invest in cryptocurrency?

Highly unlikely. Nepal Rastra Bank has taken a firm stance against cryptocurrency-related transactions. Using this facility for crypto or speculative assets would most likely be flagged as misuse.

5. How strict is the documentation process?

Quite strict, but fair. As long as your documents are clean, your earnings are traceable, and your investment is aligned with IT and tech, the process is straightforward. The 15-day response deadline makes the timeline manageable.

6. What happens if I want to expand the investment later?

You’ll need to reapply with updated financials, board approvals, and supporting documents. The cap of USD 1 million still applies, and all the original rules remain in effect.

Final Thoughts

This amendment is more than a policy update, it’s a shift in how Nepal sees its tech entrepreneurs.

For the first time, an IT company in Nepal has the legal backing to participate in global ventures. Not just as a service provider, but as an investor, stakeholder, and partner.

And that changes everything.

It allows Nepali startups to grow internationally without needing foreign intermediaries. It creates new possibilities for innovation, expansion, and global collaboration. And it signals that Nepal is starting to take its digital economy seriously.

But with opportunity comes responsibility. This is a trust-based system. Use it wisely, stay compliant, and you won’t just help your own company, you’ll help reshape the reputation and reach of the entire Nepali tech ecosystem.

If you’ve ever dreamt of building something global from Kathmandu, Lalitpur, or Pokhara, this is your moment.

Additional Resources:

• Bitcoin Price in Nepal: Is It Legal or Still Banned?
• Digital Nepal Budget 2082: 5% Tax Rate on IT Exports Explained
• Is Nepal Electricity Authority Risking Rs. 66B in Hydropower?
• FDI in Nepal: Are We Really Seeing a Surge or Just Headlines?