KATHMANDU, July 22: An overwhelming majority of foreign nationals living in Nepal on business visas are found to have made ´business´ just an excuse to stay here longer and carry out other activities.
Thanks to the Department of Industries which recommends renewal of such visas without monitoring the business activities, the number of foreign nationals acquiring business visas has gone up sharply in recent years.
There are a total 4,884 foreign nationals living in Nepal on business visas. The majority of them have acquired their visas purportedly for running hotels, restaurants, software outsourcing businesses, travel, tour and courier businesses, and others.
According to the Department of Immigration, altogether 927 foreign nationals acquired business visas in the last 11 months of the current fiscal year alone. This figure includes 268 Chinese nationals most of whom obtained business visas for running restaurants and hotels in Kathmandu Valley.
While the primary consideration in acquiring business visas is to stay for longer periods without having to undergo hassles from local authorities, many foreign nationals are found choosing business visas simply to evade higher visa fees.
A person under the tourist category can get a visa for a maximum 150 days at a time and pays 60 US dollars a month. However, one pays just 300 US dollars a year if s/he acquires a business visa. Business visas are renewed each year.
As per the Foreign Investment and Technology Transfer Act 2049 BS, the Department of Industry needs to write a recommendation letter for business visas for foreign nationals who have registered their companies at the Company Registrar´s Office, following approval of their business plans.
Director General Binod KC at the Department of Industry said a recommendation letter for a business visa is written after a foreign national comes up with a concrete plan to invest a minimum of 20,000 US dollars in a business venture in Nepal. “We make the recommendation for the business visa only after all requirements stipulated in the existing laws are fulfilled,” he said. Investment could be in a joint venture with a Nepali national.
But there is a serious problem with the monitoring to see if the foreign nationals are genuinely engaged in their proposed business activities in Nepal.
As per the existing legal provision, the Department of Industry needs to make an inspection visit to the business or industrial venture undertaken by a foreign national while writing a recommendation letter for his visa renewal.
Altogether 1,647 businesses or industrial ventures have been registered in the country so far in the name of foreign nationals. Of these, 150 were registered during nine months of fiscal year 2005/06 alone. Officials admit that a majority of them have not come into operation as yet.
Sadly, there is hardly a case where the Department of Industry refuses to recommend extending a visa as foreign nationals easily bribe officials. Sources said department officials make recommendations without undertaking any inspection visit to the business or industrial undertaking in question.
Normally, a foreign national acquires a business visa for six months the first time. The visa is then renewed each year, with the recommendation of Department of Industry and a tax clearance certificate. In many cases, the tax clearance certificate accompanying the recommendation letter shows zero transaction, according to immigration officials.
“They start quarreling with us if we deny them a visa once they have acquired the recommendation letter from the Department of Industry,” said Tirtha Raj Parajuli of the Department of Immigration. “There would not have been any problem if the recommendation letter is given in the first place only after proper inspection of the business or industry a foreigner is supposed to be running.”
The Immigration Department is also supposed to make inspection visits to the businesses or industrial units and learn about their activities through the National Investigation Department (NID), the intelligence arm of the government, before renewing any visas. However, this is rarely done due to lack of a separate implementation mechanism.
Senior police officials say that failure to effectively implement immigration rules is posing a serious threat to law and order in the country. “It is obvious that those staying on business visas without involving themselves in the businesses they proposed are involved in illegal activities,” argued a senior police official, asking to be unnamed as he is not supposed to talk to media. “It is learnt that many such persons are involved in various illegal activities such as drug smuggling, counterfeit currency rackets and intelligence activities.”
Officials suggest to the Department of Immigration, Department of Industry, NID and Nepal Police to work jointly to effectively ensure that visas are not misused. “It is just not about business visas. Other visas are also found grossly misused due to a poor implementation mechanism for immigration rules,” added the police official.
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I think it was a great coverage as usual journalist does. To obtain business visa is more difficult then obtaining other visa. and expensive too. Just today I met one of the bank manager he said there was his friend wanted to get b visa, so he asked one of his lawyer friend but he could not help him. Because there certain rule to fallow to have B visa. I hope journalist Kosh Raj Koirala has gone trough it. If not I can explain. First of all who ever want to establish business in Nepal should ha
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shant aryal
I am one of those foreign nationals that opened a business here 8 months ago and as a legitimate business owner I find it hard to believe this is the biggest problem that needs to be addressed in the whole system. If anything, I and others I know have found it EXTREMELY difficult to register and start a company here in Nepal along with getting business visas for us and our families. People are always going to slip through the cracks or pay bribes but please letīs focus on those legitimate people
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Anonymous
I think this is true and our corrupt officers are responsible for this kind of situation. Even the foreigner under business visa working in UN,NGO and INGO, no body knows what they are doing. Our so called bureucrats just happy if dinner, or small gift is provided to them
I think this is happening beacuse of our poor mentality and most unprofessional civil servant in the world.
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Sumamn
Ok but this is hardly a news and I feel since the number is so low it would be ok to turn a blind eye on them. These people must be either losers or people who care about some aspect of Nepal. Compared to the rule of law being misused by us, and you the journalists, I think that foreigners are not abusing all that they could.
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Number
There is more investigation needed. there is many foreigner are engaged in eiilgal business and the officials of the DOI , Company Registrar, and the Immigration are not fair. They do anything and they recommend for business visa by taking money (Brive) illegally. So need to do more investigation on this matter in DOI and Immigrato and CRo office.
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