NRN Law in Nepal 2080 (Non-Resident Nepali Law)

Introduction

An Non-Resident Nepali (NRN)fnrn l is a person of Nepalese descent who currently resides outside of Nepal. This category encompasses both Nepali citizens residing abroad and foreign nationals of Nepalese descent.

Non Resident Nepalis are required to present their NRN Card, which is a legal identification document. The validity of the card varies depending on the individual’s status; it can be valid for up to ten years for foreign citizens of Nepalese origin and up to two years for Nepali citizens residing abroad.

Laws Concerning NRN in Nepal

The Non Resident Nepali (NRN) Act and associated regulations make up the majority of the laws that apply to NRN citizens in Nepal.

The Primary NRN Law in Nepal, the Non-Resident Nepali Act, 2064, encourages non-resident Nepalis to engage in Nepalese culture and diaspora affairs by granting them additional rights and fostering a sense of attachment to Nepal. The principal legal framework that regulates the status, privileges, and responsibilities of Non-Resident Nepalis is the Non-Resident Nepali Act of 2007.

In addition to the Non-Resident Nepali Act, the Non-Resident Nepali Regulation, 2008, provides comprehensive procedures and regulations pertaining to the act’s implementation, including the issuance of NRN identity cards, investment opportunities, and other privileges and rights granted to NRNs.

Foreign exchange transactions, including those involving NRNs, are governed by the Foreign Exchange (Regulation) Act, 2019. It specifies the regulations governing foreign currency transactions, remittances, and other financial matters pertinent to NRNs.

Definition of Non-Resident Nepali and Nepali Citizen Residing Abroad

Non-Resident Nepali is a term used to describe a foreign citizen of Nepali descent who is residing abroad.

A foreign citizen of Nepalese origin is an individual who was a citizen of Nepal at some point in time and has since obtained citizenship in another foreign country, excluding member countries of the South Asian Association of Regional Co-operation (SAARC). This exemption applies to individuals who were Nepalese by blood or by virtue of their father, mother, grandfather, or grandmother.

Issuance of NRN Identity Cards

If a Non-Resident Nepali or heir family wishes to register their name in such a status, they must submit an application, along with the appropriate fees, to the designated authority.

Upon receiving a submitted application and conducting all requisite investigations, the prescribed authority ought to uphold a record of the non-resident Nepali.

Non-resident Nepalis whose names have been recorded as obtaining an identity card are required to submit an application to the designated authority.

The prescribed authority may issue an identity card to the non-resident Nepali applicant and collect the prescribed fees after conducting the necessary inquiries.

In the case of a foreign citizen of Nepalese descent who has obtained a valid visa, the validity period of the issued identity card should not exceed ten years.

A valid validity period of up to two years is required for a Nepalese citizen residing abroad identity card.

A Nepalese citizen who is granted permission to reside abroad for a period of more than two years by the relevant foreign state may, however, be issued an identity card for such a period.

Before the validity period of the identity card expires, a non-resident Nepali who wishes to renew their identity card must submit an application to the appropriate authority.

Following the collection of the prescribed fee, the prescribed authority must renew the identity card. A non-resident Nepali should not have their status as a Nepalese citizen residing abroad revoked in violation of this Act for making an investment in Nepal.

If the individual has held a position in Nepal as a director or high-ranking management official during the operation of the industry or business in question, their non-resident Nepali status should be preserved.

Right to Open a Convertible Foreign Currency Account

An account for the amount earned in convertible currency may be opened and operated by a non-resident after obtaining an identity card.

The Nepal Rastra Bank hereby authorizes any commercial bank or financial institution to hold this account in good standing and conduct financial transactions.

Foreign Currency Convertible Investment

Non-resident Nepalis and foreign businesses in which a non-resident Nepali holds more than fifty percent of the share investment are permitted to invest the earned amount abroad.

Any industry or business may accept foreign investment in accordance with the applicable laws or as directed by the government of Nepal via a notification published in the Nepal Gazette.

Such investments require the use of funds obtained via a commercial bank or financial institution that possesses a license issued by the Nepal Rastra Bank.

Obligation to Inform

Legislative mandates that the prescribed authority be notified of any investments made in Nepal by non-resident Nepalis. The information furnished ought to encompass specific details as mandated by the applicable regulations.

Money might be Repatriated

A Nepali non-resident is permitted to repatriate the invested capital and an amount equal to the profit earned, in foreign currency that is convertible. The process of repatriation must conform to the established protocols.

Rights, Facilities and Concession for Foreign Citizen

Irrespective of the prevailing legislation, a foreign citizen of Nepalese descent may, under certain circumstances, acquire designated land or other property in Nepal for themselves or their heirs. Any individual may be granted assignment (transfer) of the acquired property.

If the heir is a foreign citizen of Nepalese descent and possesses an identity card, the inheritance shall be transferred to them in the event of the demise of the foreign national with property in Nepal.

The subsequent tax exemptions have been approved:

• (a) No tax shall be imposed on the capital amount invested by a non-resident Nepali.
• (b) Amount Sent to Close Relatives: The amount sent by a non-resident Nepali citizen to close relatives who are Nepalese citizens for personal use, but not exceeding Fifteen Million Rupees in a fiscal year, is exempt from tax.
• (c) Amount Sent to Institutions: No tax shall be imposed on the amount sent by a non-resident Nepali to institutions related to social, religious, academic, cultural, charitable, sports, or natural disaster rescue that were established without profit motives.

Rights Regarding Concerning Visa

A foreign citizen of Nepalese descent or a member of a Nepalese family residing or investing in Nepal may be granted a non-residential visa with a maximum validity of ten years. Extensions of the Visa Period may be requested if deemed necessary.

Right to Operate a Business or Industry

A foreign citizen of Nepalese descent who has invested in accordance with the applicable laws is permitted to operate any industry or business on an equal footing with a Nepalese citizen.

Possession of Facilities

Foreign citizens of Nepalese descent who have made investments in Nepal are eligible for the same facilities extended to foreign nationals in exchange for their investments denominated in convertible foreign currency.

Provision Relating to Union of NRN’s

The ability to form a union of non-resident Nepalis within Nepal is granted to non-resident Nepalis. Encouragement of benevolence and cooperation among non-resident Nepalis is the principal aim of this union.

In accordance with the prescribed regulations, the registration procedures and other pertinent provisions regulating the union of non-resident Nepalis are specified.

The automatic cancellation of an identity card may occur when a Nepalese citizen residing abroad obtains foreign citizenship. Should such a citizenry be acquired, the obtained identity card shall lapse.

Repercussions of Cancellation: If a Nepalese citizen residing abroad has their identity card revoked, they are no longer eligible to receive any services or concessions associated with their status.

Conclusion

NRNs are eligible to acquire identity certificates that remain valid for a maximum of ten years, thereby enabling the exercise of numerous rights.

Transparency is ensured through the delineation of investment alternatives abroad and repatriation rights. Individuals of Nepalese descent who are not citizens of Nepal are granted property rights and tax exemptions.

Detailed visa provisions and business operations rights are provided, with the section concluding with the formation of NRN unions and the repercussions of identity card cancellation upon obtaining foreign citizenship.