The Ministry of Industry, Commerce and Supplies has published a gazette notification in regards of Amendment to the Foreign Investment and Technology Transfer Regulation, 2079 (“Amended Regulation”) in Baisakh 2080.
Rule number 8(a) was added in regards of automatic route to simply system for attracting foreign investment.
- One point center for foreign investment.
- Up to 500 million investors will automatically receive pre-approval through the online system.
- No minimum investment limit for information technology-based industries when investment is through automatic investment route.
- Department of Industries (DOI) is putting in place an electronic filing and document submission system for overseas investors.
- Investors can electronically acquire a foreign investment approval certificate and an email confirmation following the DOI’s evaluation and verification process.
- Aims to reduce procedural complexities and expedite the foreign investment.
- It allows automatic route into two forms of foreign investment –
- Incorporation of a new company as 100% subsidiary or as a joint venture,
- Capital increment in an existing company with foreign investment.
- Areas specified for automated route: –
- Production of certain consumers goods
- Manufacturing sector
- Service Sector
- Information sector technology
- Tourism Sector
- Infrastructure Sector
- Agriculture and forestry-based sector
- Energy sector
Department of Industries stated to implement this notification.