November 7: The government has decided to take strict measures while issuing business visas to those who pledge to invest in Nepal only to obtain such visas but do not intend to make any investment in reality.

The government’s move is aimed at discouraging the practice of foreigners getting approval for investment just for the sake of acquiring business visas.

The Department of Industry has made some new arrangements in the visa recommendation to make the business visa recommendation more systematic and dignified. According to Ramchandra Tiwari, director general of the department, the business visa can be linked with real investment. He said that some foreign nationals have the intention of not making real investment in Nepal, but of staying for a while and returning to their destination after the visa expires.

The new provision aims to discourage the situation in which the graph of foreign investment approved by the department increases but the investment does not actually come.

A notice issued by the department on Thursday states that some foreigners have been found approving foreign investment only for the purpose of obtaining business visa but do not register the company and also don’t bring any investment.

The department estimates that foreign nationals who have received business visas may be involved in activities contrary to the purpose of the visa. Director General Tiwari said that visa recommendation process has been made more systematic to prevent such activities. The notice issued by department states that this new system shall come into effect from November 4. It means that the new provision is being implemented since last Friday.

The department has made it mandatory for foreign nationals to submit the company registration certificate to seek recommendation for business visa for the first time for a period of three months.

The department will now onward recommend an additional three-month business visa only after the investor submits the company registration certificate.

The department informed that those seeking such visas should then submit the progress report on registration with the tax office, opening a bank account and registration of an industry or application for registration of an industry.

Foreigners who have been given approval for investment by the department must now complete these procedures and steps to extend the period of their business visa. There was no such arrangement before.

The department has adopted a policy not to recommend business visas again until the proposed foreign investment is brought into the country. Director General Tiwari, however clarified that if these provisions cause any inconvenience to foreign investors, the department is ready to facilitate them.

“The Foreign Investment and Technology Transfer Act does not expect fake investors,” he said.