United States
THE FOREIGN INVESTMENTSACT
I. Definitions
§1 Definitions
For the purpose of this act:
1. ”Territory” is understood to mean the territory under thesovereignty of the Hutt River Province Principality.
2. ”Foreign investor” is understood to mean:
a) every physical person that is a citizen of a foreign country; or
b) every physical person that is a national of the Hutt River ProvincePrincipality but who has always resided outside the country; or
c) every legal entity founded according to the laws of a foreign country,which directly or indirectly seeks to carry out or is carrying out aninvestment in the territory of the Hutt River Province Principality inaccordance with its law.
3. "Foreign investment" is understood to mean every kind of investment inthe territory of the Hutt River Province Principality under the direct orindirect ownership of the foreign investor, which consists of:
a) movable or immovable assets, tangible or intangible assets or any otherkind of possession;
b) a company, stock shares in a company and any form of participation in acompany;
c) loans, financial obligations or obligations in an activity that haseconomic value and that is connected with an investment;
d) intellectual property, including literary, artistic, scientific,technological, audio recording, invention, industrial designs,semiconductor mask works, know-how;
e) every right given by law or contract, and every license orauthorization given in accordance with the laws.
4. "Revenue" is understood to mean the amount of money that arises from orrelated to an investment, including profit, dividends, interest,recapitalization, management fees, technical assistance fees, or otherfees or contributions in-kind.
II. General Provisions
§2 Authority and treatment
Foreign investment in the Hutt River Province Principality is subjectto prior authorization and based on aggreement between the foreigninvestor and the Government in each specific case.An aggreement may include exemption from payment of tax, revenues or othersuch expenditures.
The foreign investor is permitted and treated based on conditions not lessfavorable than those that apply to domestic investors in similarcirc*mstances, excluding ownership of land, which is regulated by aspecial law.
In all cases and at all times investments have equal and impartialtreatment, and full security.
In all cases foreign investment is treated no less favorably than thatsecured by general norms, accepted by international law.
§3 Prohibition
Foreign investment is prohibited in the following areas:
a) defense, internal public order and State security;
b) banking activities involving central bank and issuing bank function;
c) other areas which are considered by law to be absolutely reserved forthe State or the Sovereign Prince.
§4 Protection from expropriation and nationalization
No property or foreign investment of any description shall beexpropriated or nationalized neither directly or indirectly, and nointerest in or right over property or foreign investment of anydescription of an foreign investor shall be compulsorily acquired, exceptfor public purposes determined by law.
Foreign investments will be treated in a nondiscriminatory manner and paidimmediately, in a fair and effective manner, and in accordance with dueprocess of law.
§5 Employment
A company with foreign investment, has the right to employ Hutt RiverCitizens.
Hutt River Overseas Citizens and Foreign Citizens have the right to workwithin the territory when they hold a residence permit.
III. The Proposal
§6 Submitting the Proposal
Foreign investment proposals shall be submitted to the competent body,accompanied by the documentation necessary for the (illegible) and legalcharacterization of the investor and the planned investment.
§7 Evaluation of the Proposal
Upon receipt of the proposal, the Cabinet shall have a period of ninetydays in which to evaluate it and give its opinion. During that peiod, theCabinet shall analyse and evaluate the proposal.
§8 Correction of the Proposal
In the event that the submitted proposal is either deficient orinsufficient in form, the Cabinet shall notify the applicant, fixing atime limit for the proposal to be corrected or revised.
§9 Rejection of the proposal
The rejection of a proposal is within the competence of the Cabinet.
The rejection of the proposal, which shall be formally communicated to theapplicant by the Cabinet, may only be based on:
a) reasons of a legal nature;
b) undersirability of the planned investment in the light of theinvestment strategy defined by the competent sovereign body of the State.
§10 Complaint against the Rejection Decisions
Complaints against rejection decisions that have been made under theterms of §9, shall be made to the hierarchically higher authorityconcerned, and shall be filed within a period of 30 days.
§11 Approval of the proposal
Approval shall take the form of an aggreement between the investor andthe Government of the Hutt River Province Principality.
IV. Transfer of funds
§12 Transfers
Foreign investors have the right to transfer out of the territory ofthe Hutt River Province Principality all assets related to a foreigninvestment, including as follows:
a) revenues;
b) compensation;
c) payments as a consequence of an investment disagreement;
d) payments made under a contract, including loan and interest paymentsaccording to a loan agreement;
e) revenues stemming from the sale or the payment of any or all part of aninvestment;
f) return of shareholders' equity, resulting from the reduction of capitalwhen the company has decreased its capital according to Hutt Riverlegislation.
Foreign investors will have the right to make transfers out theterritory of the Hutt River Province Principality to a freely convertiblecurrency calculated at the prevailing market rate on the date of thetransfer, with respect to spot transactions in the currency to betransferred.
The Hutt River Province Principality may limit the right of transferthrough the equal and nondiscriminatory manner of the laws of generalapplication, including laws regarding the payment of taxes and thesatisfaction of claims and court decisions.
V.Violation of investment terms
§13 Violations
Without prejudice to the provisions of other legal documents, acts ofnon compliance, malicious or negligent with the legal obligations to whichthe foreign investor is liable, constitute violations.
Specifically, the following acts shall constitute violations:
a) use of funds originating from foreign sources which is not incompliance with the principles and laws of the Principality;
b) practice of commercial activities outside the scope of the authorizedobjective.
§14 Sanctions
Without prejudice to other sanctions specifically provided for by lawthe violations referred to in §13 shall be subject to the followingsanctions:
a) loss of tax incentives;
b) revocation of authorization for the investment.
Failure to implement the project within the time limits set for it in theauthorization or extension is liable to the sanction provided for in lineb) of the previous section.
§15 Decisions and Appeals Regarding Sanctions
Foreign investors must obligatorily be heard prior to the applicationof any sanctions. In determining the sanction to be applied, allcirc*mstances surrounding the violation or degree of culpability, theintended benefits and the benefits obtained by committing the violation/and the damage resulting there from, must be taken into consideration.
Foreign investors may file claims against, or appeal, against thesanctions under the terms of current legislation.
VI. Regulations
§16 Regulations
After consultation with the Cabinet, the Minister may, by statutoryinstrument, provide for:
(a) anything which by this Act is required or permitted to beprescribed, and
(c) such other matters as are necessary or conducive to the bettercarrying out of the purposes of this Act.
This article revolves around the regulations and provisions regarding foreign investments in the Hutt River Province Principality. Here's a breakdown of the key concepts and provisions mentioned in the article:
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Definitions:
- Territory: Refers to the land under the sovereignty of the Hutt River Province Principality.
- Foreign Investor: Includes individuals from foreign countries, nationals of the Principality residing abroad, and foreign legal entities seeking to invest within the Principality's territory.
- Foreign Investment: Encompasses various forms of investments, such as assets, company shares, loans, intellectual property, rights granted by law or contract, licenses, etc.
- Revenue: Money generated or related to an investment, including profits, dividends, interest, fees, etc.
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General Provisions:
- Authorization and Treatment: Foreign investments require prior authorization and agreement between the foreign investor and the Government, potentially involving exemptions from certain payments.
- Equal Treatment: Foreign investments must receive treatment not less favorable than domestic investments, except for land ownership, regulated separately.
- Prohibitions: Certain areas like defense, internal public order, and banking activities involving central banks are prohibited for foreign investment.
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Protection and Employment:
- Protection from Expropriation: Foreign investments are safeguarded against expropriation or nationalization except for public purposes determined by law.
- Employment: Companies with foreign investment can employ citizens of the Principality, Overseas Citizens, and Foreign Citizens holding a residence permit.
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Proposal Submission and Evaluation:
- Submission and Evaluation: Foreign investment proposals need to be submitted with necessary documentation and evaluated within a stipulated period.
- Correction and Rejection: Proposals may be corrected if deficient; rejection can occur based on legal reasons or undesirability concerning the investment strategy.
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Transfer of Funds:
- Right to Transfer: Foreign investors have the right to transfer assets related to their investments out of the Principality's territory, subject to prevailing market rates and certain limitations by local laws.
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Violation of Investment Terms:
- Violations: Non-compliance with legal obligations, misuse of funds, or engaging in unauthorized commercial activities constitute violations.
- Sanctions: Violations can lead to loss of tax incentives or revocation of investment authorization.
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Decisions and Appeals Regarding Sanctions:
- Due Process: Foreign investors must be heard before applying sanctions. Decisions consider circ*mstances, intended benefits, and damage caused by violations. Investors can appeal against sanctions.
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Regulations:
- Ministerial Regulations: The Minister can provide regulations necessary for implementing the purposes outlined in the Act.
Understanding these concepts and provisions is crucial for anyone interested in investing or conducting business within the Hutt River Province Principality.
