§1 Definitions
For the purpose of this act:
1. ”Territory” is understood to mean the territory under the sovereignty of the Hutt River Province Principality.
II. General Provisions
§2 Authority and treatment
Foreign investment in the Hutt River Province Principality is subject to prior authorization and based on aggreement between the foreign investor and the
Government in each specific case.
§3 Prohibition
Foreign investment is prohibited in the following areas:
a) defense, internal public order and State security;
§4 Protection from expropriation and nationalization
No property or foreign investment of any description shall be expropriated or nationalized neither directly or indirectly, and no interest in or right over
property or foreign investment of any description of an foreign investor shall be compulsorily acquired, except for public purposes determined by law.
§5 Employment
A company with foreign investment, has the right to employ Hutt River Citizens.
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 legal
characterization of the investor and the planned investment.
§7 Evaluation of the Proposal
Upon receipt of the proposal, the Cabinet shall have a period of ninety days in which to evaluate it and give its opinion. During that peiod, the Cabinet shall analyse and evaluate the proposal.
§8 Correction of the Proposal
In the event that the submitted proposal is either deficient or insufficient in form, the Cabinet shall notify the applicant, fixing a time 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.
§10 Complaint against the Rejection Decisions
Complaints against rejection decisions that have been made under the terms of §9, shall be made to the hierarchically higher authority concerned, 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 and the Government of the Hutt River Province Principality.
IV. Transfer of funds
§12 Transfers
Foreign investors have the right to transfer out of the territory of the Hutt River Province Principality all assets related to a foreign investment, including
as follows:
a) revenues;
Foreign investors will have the right to make transfers out the territory of the Hutt River Province Principality to a freely convertible currency calculated
at the prevailing market rate on the date of the transfer, with respect to spot transactions in the currency to be transferred.
V.Violation of investment terms
§13 Violations
Without prejudice to the provisions of other legal documents, acts of non compliance, malicious or negligent with the legal obligations to which the foreign
investor is liable, constitute violations.
a) use of funds originating from foreign sources which is not in compliance with the principles and laws of the Principality;
§14 Sanctions
Without prejudice to other sanctions specifically provided for by law the violations referred to in §13 shall be subject to the following sanctions:
a) loss of tax incentives;
§15 Decisions and Appeals Regarding Sanctions
Foreign investors must obligatorily be heard prior to the application of any sanctions.
In determining the sanction to be applied, all circumstances surrounding the violation or degree of culpability, the intended benefits and the benefits
obtained by committing the violation/ and the damage resulting therefrom, must be taken into conside ration.
VI. Regulations
§16 Regulations
After consultation with the Cabinet, the Minister may, by statutory instrument, provide for:
(a) anything which by this Act is required or permitted to be prescribed, and
I. Definitions
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 Province Principality 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 an investment in
the territory of the Hutt River Province Principality in accordance with its law.
3. "Foreign investment" is understood to mean every kind of investment in the territory of the Hutt River Province Principality under the direct or indirect
ownership of the foreign investor, which consists of:
a) movable or immovable assets, tangible or intangible assets or any other kind of possession;
b) a company, stock shares in a company and any form of participation in a company;
c) loans, financial obligations or obligations in an activity that has economic 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 or authorization given in accordance with the laws.
4. "Revenue" is understood to mean the amount of money that arises from or related to an investment, including profit, dividends, interest, recapitalization,
management fees, technical assistance fees, or other fees or contributions in-kind.
An aggreement may include exemption from payment of tax, revenues or other such expenditures.
The foreign investor is permitted and treated based on conditions not less favorable than those that apply to domestic investors in similar circumstances,
excluding ownership of land, which is regulated by a special law.
In all cases and at all times investments have equal and impartial treatment, and full security.
In all cases foreign investment is treated no less favorably than that secured by general norms, accepted by international law.
b) banking activities involving central bank and issuing bank function;
c) other areas which are considered by law to be absolutely reserved for the State or the Sovereign Prince.
Foreign investments will be treated in a nondiscriminatory manner and paid immediately, in a fair and effective manner, and in accordance with due process of
law.
Hutt River Overseas Citizens and Foreign Citizens have the right to work within
the territory when they hold a residence permit.
The rejection of the proposal, which shall be formally communicated to the applicant by the Cabinet, may only be based on:
a) reasons of a legal nature;
b) undersirability of the planned investment in the light of the investment strategy defined by the competent sovereign body of the State.
b) compensation;
c) payments as a consequence of an investment disagreement;
d) payments made under a contract, including loan and interest payments according to a loan agreement;
e) revenues stemming from the sale or the payment of any or all part of an investment;
f) return of shareholders' equity, resulting from the reduction of capital when the company has decreased its capital according to Hutt River legislation.
The Hutt River Province Principality may limit the right of transfer through the equal and nondiscriminatory manner of the laws of general application,
including laws regarding the payment of taxes and the satisfaction of claims and court decisions.
Specifically, the following acts shall constitute violations:
b) practice of commercial activities outside the scope of the authorized objective.
b) revocation of authorization for the investment.
Failure to implement the project within the time limits set for it in the authorization or extension is liable to the sanction provided for in line b) of the
previous section.
Foreign investors may file claims against, or appeal, against the sanctions under the terms of current legislation.
(c) such other matters as are necessary or conducive to the better carrying out of the purposes of this Act.