Although Nepal may not be a popular option among businesses looking to expand their businesses into another nation, creative and ambitious entrepreneurs must not reject the country just yet even if you are planning to expand your hair or wigs company. Here are some of the reasons why Nepal may become the next big international investment destination.
Excellent Policies for Foreign Investment
The following are some of the measures that have been implemented to encourage inbound investment:
-With a few exclusions, such as cottage industries, weapons and ammunition, foreign investment is welcomed in almost every industry.
-The Nepalese government allows foreign investors to control 100 percent of lucrative sectors such as tourism, mining, hydropower production, agricultural and dairy, medicines, roads, and a lot more.
Investors may hold 100 percent of a company’s stock. Knowledge management is allowed even in banned international commercial areas.
-100% return of dividends, profits from stock sales, technology transfer fees, export revenue, and interest on foreign loans
-Companies in any sector are allowed to set their own prices for their goods without government interference.
-Foreign investors and their dependant family members will be given business or residence visas.
-Foreign Investments are well-protected.
-Nepal’s participation in the Multilateral Investment Guarantee Agency ensures that foreign investments and companies are adequately safeguarded. Foreign companies may get non-commercial risk insurance from the agency to protect them against war, political unrest, and civil unrest.
Tax Incentives That Are Attractive
The following tax benefits are available to foreign investments:
-Nepal’s VAT is charged at a relatively low fixed rate of 13%.
-Output businesses and some agricultural cooperatives are exempt from paying income taxes.
-Premium, customs duty, and municipal tax are not applied to imported raw materials utilized by businesses in the export processing zone.
-For the first ten years of their existence, special industries created in underdeveloped regions only have to pay 20% of the relevant tax rate.
-Electricity transmission and distribution are exempt from excise tax and VAT.
Setting up a company in Nepal may be very lucrative for brave and adventurous entrepreneurs for all of the above reasons and more.