Three Companies Receive Approval for Overseas Investment

Nepal Rastra Bank (NRB) has granted approval to three Nepali companies to transfer capital abroad. The move follows recent government policy and regulatory changes that allow domestic firms—particularly in the IT sector—to expand overseas.”

IT firm iDream Technologies Pvt Ltd announced on Monday that it has obtained approval to exchange foreign currency to establish a branch office in the US state of Delaware. The company’s founder and managing director, Dr Sushil Paudel, said the firm had received permission to exchange US dollars required to open the branch, though he did not disclose the amount.

Sources at Nepal Rastra Bank (NRB) said the company had been approved to exchange USD 700,000. Dr Paudel declined to confirm the figure, describing the development as historic, as Nepali companies have been legally allowed to invest abroad after nearly six decades.

“Nepal Rastra Bank’s decision to allow Nepali companies to open branch offices and transfer equity abroad marks a historic turning point for the IT sector,” Dr Paudel said. “We had been pursuing approval to invest in the United States for the past one and a half years, and have finally received it.”

He also said iDream had already opened its US branch in May 2024.

According to NRB Spokesperson Guru Prasad Paudel, three companies have so far received approval to exchange foreign currency worth a total of USD 2.5 million for overseas branch expansion and investment.

“So far, we have granted foreign exchange approval to three companies for overseas expansion and investment,” he said. “Proposals from about half a dozen other companies are currently under review.”

Founded in 2007 as iDream Professional Pvt Ltd, the company was rebranded as iDream Technologies Pvt Ltd in 2012. The firm provides system management services and is an authorised Microsoft reseller in Nepal. It is also a Microsoft Cloud Solution Provider and Microsoft Solutions Partner, with 18 years of experience working on Microsoft platforms.

Nepali IT companies have begun formally expanding services and investing abroad following the introduction of legal and policy provisions by the government. Nepal Rastra Bank has started providing foreign exchange facilities to IT firms for overseas branch expansion and equity investment.

In mid-June 2024, the central bank amended the Foreign Investment and Foreign Loan Management Regulations, allowing eligible companies to exchange up to USD 1 million for overseas investment.

Earlier, in between  mid-January to mid-February 2025, the government amended the Foreign Investment and Technology Transfer Act, 2019, the Companies Act, 2006, and the Foreign Exchange Regulation Act, 1962 through an ordinance, enabling Nepali companies to open branch offices abroad and directly invest in shares of foreign companies.

A study published in 2023 by the Institute for Integrated Development Studies (IIDS) estimated Nepal’s annual IT service exports at over Rs 67 billion. Based on the study, the government announced in the budget for fiscal year 2024/25 a target of exporting IT services worth Rs 3 trillion over the next 10 years, along with measures to facilitate overseas investment.

Following the legal amendments, Nepal Rastra Bank issued directives setting limits on foreign exchange facilities for overseas investment. Under the directive, companies that have earned foreign currency through IT-related service exports for at least the past three fiscal years are eligible for foreign exchange facilities.

Such companies can obtain foreign exchange equivalent to 50 per cent of their average foreign currency earnings from service exports, or up to USD 1 million—or its equivalent in other foreign currencies—whichever is lower.

Stakeholders in Nepal’s IT sector had long demanded permission to invest abroad and expand overseas operations. In the absence of clear policy provisions, many IT companies had previously been operating informally in foreign markets.