Foreign Investment and Technology Transfer Act, 2019

2. Definitions: Unless the subject or context otherwise requires, in this Act,-

(a) "Industry" means an industry established pursuant to the prevailing law relating to industrial business.

(b) "Single Point Service Center" means a single point service center established pursuant to the prevailing law relating to industrial business.

(c) Amended by the Act to Amend Some Nepal Acts relating to Investment Facilitation, 2081."Non-Resident Nepali" means a person who has obtained a Non-Resident Nepali citizenship or a Non-Resident Nepali identity card pursuant to the prevailing law.

(d) "Prescribed" or "as prescribed" means prescribed or as prescribed in the rules made under this Act.

(e) "Board" (Securities Board) means the Nepal Securities Board established pursuant to the prevailing law relating to securities.

(f) Amended by the Act to Amend Some Nepal Acts relating to Investment Facilitation, 2081."Technology Transfer" means the transfer of technology by making an agreement between an industry and a foreign investor or between an industry or company established and operating in Nepal and an industry, firm or company located abroad, on the following subjects:-

(1) Patent, design, trademark, goodwill, technical specifications, franchise, formula, process,

(2) User's license or provision of technical know-how (know-how sharing),

(3) Amended by the Act to Amend Some Nepal Acts relating to Improvement of Economic and Business Environment and Enhancement of Investment, 2081.Management and technical service, information technology, marketing and market research, financial, accounting and auditing, engineering, outsourcing, human resource outsourcing, digital data processing and digital data migration, design service or other technical skills or knowledge,

(4) Reverse engineering.

(g) "Board" means the Amended by the Act to Amend Some Acts relating to Prevention of Money Laundering and Promotion of Business Environment, 2080.Industrial and Investment Promotion Board pursuant to the prevailing law relating to industrial business.

(h) "Ministry" means the Ministry of Industry, Commerce and Supplies of the Government of Nepal.

(i) "Investment Board" means the Investment Board pursuant to the prevailing law relating to the Investment Board.

(j) "Foreign Investment" means the following investment made by a foreign investor in an industry or company:-

(1) Share investment made in foreign currency,

(2) Reinvestment of dividend amounts received in foreign currency or from shares in an industry,

(2a) Inserted by the Act to Amend Some Acts relating to Prevention of Money Laundering and Promotion of Business Environment, 2080.Share investment made through machinery, tools, equipment, subject to Section 3,

(3) Lease investment (lease finance) made pursuant to Section 6,

(4) Investment made in a venture capital fund pursuant to Section 9,

(5) Investment made in listed securities through the secondary market of securities pursuant to Section 10,

(6) Investment made by purchasing shares or assets of a company established in Nepal,

(7) Investment received through the banking system by an industry or company established in Nepal issuing securities in a foreign capital market pursuant to Section 11,

(8) Investment made through technology transfer, or

(9) Investment maintained by establishing and expanding an industry in Nepal.

(10) Inserted by the Act to Amend Some Nepal Acts relating to Improvement of Economic and Business Environment and Enhancement of Investment, 2081.Investment made in units of a specialized investment fund pursuant to Section 9A.

(k) "Foreign Investor" means a foreign individual, firm, company, non-resident Nepali or foreign government or international organization or other similar organized institution making a foreign investment, and the term also denotes the ultimate beneficial owner of such institution if the foreign investor is an institutional foreign investor.

(l) "Foreign Investment Approving Authority" means the authority pursuant to Section 17.

(m) "Department" means the Department of Industry.

(n) "Institutional Foreign Investor" means a foreign company, organized institution or international organization making a foreign investment.