Banks that are Nepal-transaction friendly
I live in US and am planning on starting a business in Nepal soon. For US based entrepreneurs that have businesses in Nepal, I want to understand how are you managing your accounts and transactions in Nepal?
I am most interested in which US bank provides the most convenience, and least to no fees, starting with the first step of moving initial savings of say $50k-$60k from US to Nepal to set up the business. What is the cheapest way to move this capital to Nepal?
Also, as a US citizen, do you need to pay taxes on income or profit you generate in Nepal? If you have a NRN ID card, do you still need to pay taxes to Nepal government or is that waived as a way to attract foreign investment?
As a US citizen you are subject to tax on worldwide income. even bribery. Talk to your accountant before you start any businesses.
You can send wire transfer from Bank of America for 25 or 35 upto 999k one time fee.
OK, thanks for the response - that was helpful. Another question I have is - are there banks in Nepal where you can make business deposit in NRs and withdraw that cash in US in USD, e.g. Bank of America or any other big banks?
There are bureaucratic hurdles to legitimately take money out of Nepal. Read up on Ncell. They were trying to remit the profit in nepal to their home country and were blocked by the govt. They could not demonstrate the source of funds for a part of the initial investment and hence claim that the profit was theirs to take.
बिदेशी विनिमय लाइ खुल्ला गर्ने हो भने सबै बाणिज्य बैक हरु र नेपाल रास्ट्र बैंक मा भएका डलर भ्रस्टाचारि , घुसखोरीले एकै दिनमा सटही गरि सुन्य बनाइ दिन सक्छन ?
So any idea how all the NRN Entrepreneurs (with NRN IDs) who are now starting to legally invest in Nepal in lands, etc are bringing their hefty profits back to US or foreign countries where they reside?
well, as far as I know, its a one way road if you want to do things legally. Himalayan bank and Nabil bank were working on online payments system with certain limitations to the funds going outside of the country but the problem is NBL doesnt allow you to take a penny outside of Nepal without any reasons.
like cardinal mentioned, Ncell ko issue ni tyai bhayeko, they left cause they couldn't take their profit out of the country to their company.
there are illegal ways to get money out of the country, but ajkal tyo ni sajilo chaina...
even if you open up a dollar account, you can have the money saved in dollar currency but to use the card or that account outside of Nepal is not possible, withdraw Nepal mai garna parcha..
Upon investigating further, it seems there are regulations in place now for NRNs to open foreign currency bank accounts in Nepal and to repatriate any profit.
See sections 6 and 9 of the following 2064 act posted on the embassy website.
http://nepalembassyusa.org/wp-content/uploads/2015/11/non-resident-nepali-act-2064-english.pdf
What I have not been able to find is what is the exact steps in dealing with the bank to make this happen. Some folks told me to call up Nepal Rastra Bank, but I am afraid to think how fruitless that call might go.
Any NRN gurus here probably know where such details are documented?
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