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Fri, Feb 10 2012
Changes to foreign investment law
PARLIAMENT last week approved changes to the Foreign Investment Act.
The amendments expand the scope of the act over local investors, meaning that local and foreign investors are to be considered on an equal basis.
Deputy Economy Minister Dimiter Ivanovski said that the inclusion of local investors in the law was in the interest of faster economic growth and that equal treatment is a requirement in the EU accession process.
The amendments necessitated the change of the name of the legislation to Investment Promotion Act, and for transforming the Foreign Investment Agency into an Investment Agency.
Most of the changes are aimed at assisting investors in the process of setting up a business.
The time to be taken up in dealing with administrative issues is to be decreased, and failure to meet the deadlines by the administration will expose violators to fines of up to 1000 leva.
Investors with dual citizenship can decide which status to use - that of a local or foreign investor.
Foreigners are allowed to take part in all types of companies, with no restrictions. If they register a company according to the Corporate Act they could acquire limited real right on real estates, including land.
A permit for acquisition of rights on buildings and limited rights on property by foreigners or a partnership with foreign participation will be required only for areas designated by the Government as having national security and defence purposes. The permits will be issued by the Minister of Economy after consulting the Ministers of Defence and Foreign Affairs.
The development and co-ordination of the activity on investment promotion is to be done by the Economy Minister, according to the new act. The state policy in this respect is to be implemented by the Investment Agency, which will report directly to the Economy Minister. The Agency is to create and keep updated a unified information system.
The new act encourages investments in products meant for export, in agricultural production and in IT, as well as investments that could be implemented within three years or open new jobs. The Investment Agency will issue certificates to the investors, defining the class of the investment - first, second or third. The class of the investment will determine the level of co-operation by the state.
The draft envisages that the state budget should allocate special funds for developing infrastructure as a means of promotion of investment. All investors will be entitled to a state subsidy and be entitled to tax relief.
The amendments expand the scope of the act over local investors, meaning that local and foreign investors are to be considered on an equal basis.
Deputy Economy Minister Dimiter Ivanovski said that the inclusion of local investors in the law was in the interest of faster economic growth and that equal treatment is a requirement in the EU accession process.
The amendments necessitated the change of the name of the legislation to Investment Promotion Act, and for transforming the Foreign Investment Agency into an Investment Agency.
Most of the changes are aimed at assisting investors in the process of setting up a business.
The time to be taken up in dealing with administrative issues is to be decreased, and failure to meet the deadlines by the administration will expose violators to fines of up to 1000 leva.
Investors with dual citizenship can decide which status to use - that of a local or foreign investor.
Foreigners are allowed to take part in all types of companies, with no restrictions. If they register a company according to the Corporate Act they could acquire limited real right on real estates, including land.
A permit for acquisition of rights on buildings and limited rights on property by foreigners or a partnership with foreign participation will be required only for areas designated by the Government as having national security and defence purposes. The permits will be issued by the Minister of Economy after consulting the Ministers of Defence and Foreign Affairs.
The development and co-ordination of the activity on investment promotion is to be done by the Economy Minister, according to the new act. The state policy in this respect is to be implemented by the Investment Agency, which will report directly to the Economy Minister. The Agency is to create and keep updated a unified information system.
The new act encourages investments in products meant for export, in agricultural production and in IT, as well as investments that could be implemented within three years or open new jobs. The Investment Agency will issue certificates to the investors, defining the class of the investment - first, second or third. The class of the investment will determine the level of co-operation by the state.
The draft envisages that the state budget should allocate special funds for developing infrastructure as a means of promotion of investment. All investors will be entitled to a state subsidy and be entitled to tax relief.
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