Rights of Non-Resident Nepalis (NRNs) in Nepal: A Comprehensive Legal Overview (NRN Law 2024)

Introduction

Nepal has a vast and influential Non-Resident Nepali (NRN) community that plays a crucial role in the country’s economic and cultural landscape. Recognizing their contributions and ensuring their legal rights, the Government of Nepal has enacted a robust legal framework governing NRNs’ status, property ownership, investment opportunities, and other entitlements. This article provides an in-depth analysis of the NRN Law 2024, covering their legal recognition, property rights, foreign investment opportunities, and other key privileges.

1. Legal Framework Governing NRN Rights

The rights and obligations of NRNs in Nepal are governed by the following legal instruments:

• The Constitution of Nepal
• The National Civil Code, 2017
• Non-Resident Nepali Act, 2008
• Non-Resident Nepali Regulations, 2009
• Nepal Citizenship Act, 2006
• Immigration Act, 1992
• Immigration Regulations, 1994
• Foreign Investment and Transfer of Technology Act, 2019 (FITTA)

These statutes collectively regulate the recognition, property ownership, investment privileges, and visa entitlements of NRNs.

2. Who Qualifies as an NRN?

Under the Non-Resident Nepali Act, 2008, NRNs are classified into two categories:

(a) Foreign Citizens of Nepalese Origin

An individual is categorized as a foreign citizen of Nepalese origin if:

• They were previously a citizen of Nepal, or
• Their father, mother, grandfather, or grandmother was a Nepalese citizen, and
• They have acquired foreign citizenship of a non-SAARC country.

(b) Nepali Citizens Residing Abroad

A Nepali citizen residing abroad qualifies as an NRN if they:

• Have lived in a foreign country for at least two years, and
• Are engaged in a profession, business, employment, or other occupation abroad.

Exceptions: Nepali citizens residing in SAARC countries, those working in diplomatic missions, and students pursuing academic programs abroad do not qualify as NRNs.

3. Recognition Process: How to Obtain an NRN ID Card?

An NRN Identification Card (NRN ID Card) serves as official recognition of NRN status, granting various privileges, including property ownership and investment opportunities.

Application Process for NRN ID Card:

1.    Application Submission – Submit the prescribed application form along with necessary documents to:

o   Nepalese Embassies/Consulates (if applying abroad), or

o   Ministry of Foreign Affairs (MOFA) (if applying in Nepal).

2.    Payment of Prescribed Fees – Fees must be paid to process the application.

3.    Issuance of NRN ID Card – Upon verification, the concerned authority issues the NRN ID Card.

The NRN ID Card is an essential document for property acquisition, visa applications, and financial transactions in Nepal.

4. Visa Facilities for NRNs

NRNs who are foreign citizens of Nepalese origin are entitled to two types of visas:

1.    Tourist Visa – Granted upon arrival in Nepal.

2.    NRN Visa – Issued for up to 10 years, available after applying for a visa extension.

Documents Required for NRN Visa:

• Online visa application form (Department of Immigration)
• Original and photocopy of NRN ID Card (issued by MOFA or Nepalese embassies)
• Valid passport and Nepalese visa

5. Marriage Rights of NRNs in Nepal

NRNs are legally permitted to marry in Nepal, subject to compliance with the National Civil Code, 2017, which governs marriage laws for all Nepalese citizens.

6. Banking Facilities & NRN Financial Privileges

NRNs holding a valid NRN ID Card can open and operate bank accounts in Nepal for deposits in convertible foreign currency. This facilitates financial transactions, investments, and remittances.

7. Reacquisition of Nepalese Citizenship by NRNs

NRNs can reacquire Nepalese citizenship by renouncing their foreign citizenship. The process includes:

• Submission of an application to the District Administration Office (DAO) or the Ministry of Foreign Affairs (MOFA).
• Verification of prior Nepalese citizenship by the concerned authorities.

Upon approval, NRNs regain full citizenship rights, including property ownership, voting rights, and national identification documents.

8. NRN Property Rights in Nepal

NRNs who are foreign citizens of Nepalese origin are legally permitted to own immovable property in Nepal under the following conditions:

Land Ownership Limitations for NRNs

Exceptions:

• NRNs who acquired land as Nepali citizens before obtaining foreign citizenship are exempt from land ceilings.
• NRNs can inherit ancestral property without government approval, provided they hold an NRN ID Card.

9. Foreign Investment by NRNs in Nepal

NRNs are recognized as foreign investors under FITTA 2019, allowing them to invest in Nepal using convertible foreign currency.

Eligible Investment Forms for NRNs:

• Equity investment in Nepalese companies
• Reinvestment of profits derived from foreign investment
• Lease financing
• Venture capital funding
• Investment in listed stocks through the secondary market
• Technology transfer agreements
• Establishment and expansion of businesses

Investment Conditions for NRNs:

• Minimum investment of NPR 50 million
• Business must not fall under FITTA’s Negative List
• Business must be recognized as an “Industry” under the Industrial Enterprises Act, 2020

10. NRN Card Validity & Fees

The fees for obtaining an NRN ID Card vary based on residency status and government directives.

Conclusion

The NRN Law 2024 offers a well-defined legal framework to protect and facilitate the engagement of Non-Resident Nepalis in Nepal’s economic and social development. NRNs are entitled to property ownership, financial investments, and long-term visas, ensuring they remain integral contributors to Nepal’s growth.

For NRNs seeking citizenship reacquisition, property investment, or business ventures, understanding these legal provisions is crucial for making informed decisions and maximizing opportunities in Nepal.