Section 7: Investment May be Made Through Technology Transfer

1) A foreign investor may make foreign investments by making technology transfers in any industry established in Nepal.

2) The terms of technology transfer to be made pursuant to sub-section (1) shall be as specified in the technology transfer agreement entered into between the concerned industry and the foreign investor.

3) The agreement referred to in sub-section (2) may not provide for the repatriation of royalty in excess of the prescribed ceiling.

4) The agreement referred to in sub-section (2) has to be got approved by the foreign investment approving body.

5) The foreign investment approving body may, in giving approval pursuant to sub-section (4), specify the necessary terms based, inter alia, on international practices on foreign investment and the industry’s production and selling capacity.