Fiji Foreign Investment Act 1999

1. Business includes non-profitable but non-charitable business;
Certificate means a Foreign Investment Certificate;
Chief Executive means the Chief Executive of the Fiji Islands Trade & Investment Bureau;
Foreign Investor means a non-Fiji citizen engaged or intending to be engaged in business

2. A person is associated with a foreign investor if-
a) the foreign investor is a company and the person is a  Director or Secretary of the company
b) the foreign investor is a partnership or an association of persons and the person is one of the partners or one of those persons.

Certificate ( Article 4)

1. A foreign investor must not carry on business activity in Fiji unless the Chief Executive has  granted the foreign investor a certificate

2. A certificate granted to a foreign investor does not relieve the foreign investor, or any person associated with the foreign investor, from compliance with the laws of the state.

3. The certificate does not entitle the investor to any concession, incentive or assistance.

Reserved Article (Article 5)

4. A certificate will not be guaranteed to a foreign investor to carry out business in a reserved activity.

The following activities are prescribed for Fiji citizens only:
a) a tourism business of venture, or a facility ancillary to a tourism business or venture, or a facility ancillary to a tourism business or venture, having assets less than $100,000.00;
b) fishing an area referred to in section 13 of the Fisheries Act.(Cap.158)
c) a retailing or distribution business having fixed assets less than $100,000.00;
d) a milk bar or cafeteria business;
e) a restaurant business other than a specialty restaurant business;
f) a taxi, hire a car or business
g) a kava saloon
h) hairdressing
i) market vending
j) mixed subsistence farming
k) motor vehicle repair and servicing;
l) a handicraft business;
m) tailoring or shoe repairing
n) a carpentry, plumbing or electrical business;
o) an earthmoving business;
p) plant nursery and care
q) a day care-center
r) a roadside stall;
s) an office service business having assets less than $100,000.00

The above list is to be reviewed every 2 years by the Permanent Secretary for Commerce, Business Development and Investment after which he/she must recommend to the Minister for any additions, variations or deletions.

Restricted Activities ( Article 6)

The following list of activities have conditions which must be met by foreign investors who wish to pursue them.

Fishing  
1. A foreign investor must have at least 30% local equity
2. Fishing must only take place in the Fiji Islands Exclusive Economic Zone excluding  the territorial seas within the meaning of the Marine Spaces Act (Cap,158A)
3. A foreign investor that has a majority foreign shareholding must pay to the Ministry of    Finance an account equal to5% of the landed value of catch, except if the catch is processed locally.

Forestry  
1. A foreign investor must have at least 30% local equity.

Tourism  
1. An operator of leisure cruises must have at least 51% local equity
2. Any activity involving investment in the cultural heritage of the Fiji Islands must have at least 51% local equity.
3. Resource owner must be fully briefed on the use of the resources by the foreign investor.

Services  
1. A foreign carrying on banking business must have a licence under the banking Act  (Cap 212)
2. A foreign investor carrying on business as a foreign exchange dealer must have a  licence or authority under the Act (Cap.211)
3. A foreign investor engaging in the activity of a Customs House Agent must have at  least 60% local equity.
 4. A foreign investor engaging in real estate management or development in the construction industry must have at least 51% local equity.
5. A foreign investor providing a pest control and fumigation service must have at least  51% local equity
6. A foreign investor providing an inter-island shipping and passenger service must have least 51% local equity.
7. A foreign investor carrying on an advertising, public relations or marketing business must have at least 30% equity.

The above list of Restriction activities is to be reviewed every 2 year by the Permanent Secretary for Commerce, Business development and Investment after which he / she must make recommendations to the Minister, for additions, variations or deletions.

Application for Foreign Investment Certificate ( Article 7)
1. Application forms are available from FTIB office
2. If, a change of address occurs after submitting an application, the foreign investor must notify the Chief Executive in writing, of the change within 1 month of the date of change.
3. Written notice of the approval or refusal of an application will be given to the foreign investor within 15 days.

Certificate ( Article 8)
2. If a foreign investor has been granted a certificate to carry on business in an activity; and the activity     subsequently becomes a reserved activity, the foreign investor may continue to carry on business in the   activity as if it were not a reserved activity.

3. If a foreign investor has been granted a certificate permitting the foreign investor to carry on business   in an activity and the activity subsequently becomes to a restricted activity, the foreign investor may continue to carry on business in that activity as if it were not restricted activity

4. If a foreign investor has been granted a certificate to carry on business in a restricted activity; and  conditions specified in relation to that activity is subsequently altered, the foreign investor may continue to carry on business in that activity in accordance with the condition or conditions specified in the certificate.

5.    If a foreign investor has been granted a certificate to carry on business in an activity; and the activity subsequently becomes a prohibited activity, the foreign investor must stop carrying on business in that activity within 12 months after the date on which the activity became prohibited; or such shorter period as the Chief Executive fixes and the certificate of the foreign investor ceases to be in force in the end of that period.

Register of Certificates.(Article 9)

1. All certificates are registered with the FTIB.
2. Registered copies or extract from the Register is prima facia evidence of the matters contained in it.
3. A copy of a Foreign Investment certificate; or an extract from the register can be obtained from the prescribed fee.

Register Open for Inspection (Article 10)

The Register is open for inspection during normal hour.

Change in ownership of foreign investor (Article 11)

1. If a change occurs in the ownership or shareholding of a foreign investor that has been granted a certificate(other than a foreign investor that is a public company and is listed on a stock exchange), the investor must notify the Chief Executive of the change within 14 days of the date of change. Penalty: $5,000.00.
2. If, as a result of a change in the shareholding or beneficial ownership of a business that the local shareholder becomes a foreign investor, it must apply for a certificate within 14 days.
3. A certificate granted to a foreign investor is not transferable to any other person or body.

Variation ( Article 12)

A foreign investor granted a certificate may apply to the Chief Executive in the prescribed form, for a variation of the business carried on by it, or, any other term or condition of the certificate.

Cancellation of Certificate (Article 13)
a) A certificate may be cancelled 28 days after the date of notice if the Chief Executive is satisfied that a foreign investor -
I. obtained a certificate by fraud, misrepresentations, misstatement or omission.
II. is in breach of the terms or conditions of a certificate.
III. is otherwise in breach of this Act.
IV. has ceased to carry on business in the activity in respect of which a certificate was granted;or
V. has not started to carry on business in that activity within 12 months after the grant of a certificate or

b) circumstances arise which would require the Chief Executive not to grant a certificate.

Investment Guarantees (Article 14)
1) A foreign investor has the same protection under section 40 of the constitution against compulsory acquisition of property as any other person.

Appeal to Minister ( Article 15)
2) A foreign investor or may appeal to the Minister within 28 days of the making of a reviewable decision.

Prohibition on Foreign Investors ( Article 16)
A foreign investor must not carry on business without a Foreign Investment Certificate;carry out business in a prohibited activity carry on business in a reserved activity; or fail to comply with the conditions of a Foreign Investment Certificate. Penalty: $20,000.00.

False Statements (Article 17)
Penalty for making false statements:$20,000.00.

Delegations (Article 18)
1. The secretary for Commerce, Business Development and Investment may, in writing, delegate to the Deputy Secretary all or any of his/her powers under the Foreign Investment Act.
2. The Chief Executive may, in writing delegate to the Deputy Chief Executive of the Fiji Islands Trade and Investment Bureau all or any of his/her powers under the Foreign Investment Act.

Further informations on the Foreign Investment Act can be obtained from:

Fiji Islands Trade and Investment Bureau
6th Floor, Civic Tower, Victoria Parade
P.O.Box 2303, government Buildings, Suva, Fiji
Tel (679) 3315988  Fax (679) 3301783
e-mail: ftibinfo@ftib.org.fj

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