Measures relating to admission and establishment
- Closing certain sectors, industries or activities to FDI
- Quantitative restriction on the number of foreign companies in specific sectors, industries or activities.
- Minimum capital requirements.
- Subsequent additional investment or reinvestment requirements
- Screening, authorization and registration of investment.
- Conditional entry upon investment meeting certain development or other criteria (e.g. environmental responsibility).
- Investment must take certain. Legal form (e.g., incorporated in accordance with local company law requirements).
- Restrictions on forms of entry (e.g. mergers and acquisitions may not be allowed, or must meet certain additional requirements).
- Special requirements for non equity forms of investment (e.g., build operate transfer (BOT) agreements, licensing of foreign technology).
- Investment not allowed in certain zones or regions within countries.
- Restrictions on import of capital goods needed to set up an investment (e.g. machinery, software).
- Investors required to deposit certain guarantees (e.g. for financial institutions).
- Admission to privatization bids restricted or conditional on additional guarantees, for foreign investors.
- Admission fees (taxes) and incorporation fees (taxes).
- Investors required complying with norms related to national security, policy, customs, and public morals requirements as conditions to entry.
- Restriction on foreign ownership (e.g. no more than 50 per cent of foreign owner capital allowed).
- Compulsory joint ventures, either with state participation or with local private investors.
- Mandatory transfers of ownership to local firms, usually over a period of time.
- Nationality restrictions on the ownership of the company or shares thereof.
- Restrictions on the use of long term (5 years or more) foreign loans (e.g. bonds).
- Restrictions on the free transfer of shares or other proprietary rights over the company held by foreign investors (e.g. shares cannot be transferred without permission).
- Restrictions on foreign shareholders rights (e.g. on payment of dividends, reimbursement of capital upon liquidation; on voting rights; denial of information disclosure on certain aspects of the running of the investment).
- "Golden” shares to be held by the host government allowing it, e.g., to intervene if the foreign investor captures more than a certain percentage of the investment.
- Government reserves the right to appoint one or more members of the board of directors.
- Restriction on the nationality of directors, or limitation on the numbers of expatriates in top managerial positions.
- Government reserves the right to veto certain decisions, or requires that important board decisions to be unanimous.
- Government must be consulted before adopting certain decisions.
- Management restrictions on foreign controlled monopolies or upon privatization of public companies.
- Restrictions on land or immovable property ownership and transfers thereof.
- Restrictions on industrial or intellectual property ownership or insufficient ownership protection.
- Restrictions on the licensing of foreign technology.
