The Foreign Investment Act (FIA) 1999 and Foreign Investment (Amendment) Act 2004 lays down the guidelines by which a foreign investor can invest in Fiji.

What does the Act says?
There are 20 Articles in the Foreign Investment Act 1999 and Foreign Investment (Amendment) Act 2004. Not all of them are written in this page. This page serves to highlight only certain aspects of the FIA.

What are the main aspects highlighted in the Act?
A copy of the Act can be obtained from the Fiji Islands Trade & Investment Bureau Office.

Foreign investors are required to especially study:
- the list of Reserved Activities
- the Restricted Activities
- application for Foreign Investment Registration Certificate

FOREIGN INVESTMENT ACT 1999
(No. 1 of 1999)

&

FOREIGN INVESTMENT (AMENDMENT) ACT 2004 (No. 8 of 2004)

Citation and Commencement

DISCLAIMER
This is not an authoritative text of the legislation, which is published by the Government Printer. The information in this document is not intended to be relied upon and no representation is made as to its accuracy. Independent advice should be taken before acting on any information contained in this document.
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Interpretation (Section 3)

1. Business includes a business not carried on for profit but does not include a business carried on by a charitable trust;
Certificate means a Foreign Investment Registration Certificate;

Chief Executive means the Chief Executive of the Fiji Islands Trade and Investment Bureau;

Foreign investor means an enterprise, other than a national enterprise, engaged or intending to be engaged in carrying on business in a relevant activity in the Fiji Islands

2. A person is taken to be associated with a foreign investor if:

(a) is one of those persons or a partner or, in the case of a private company, a member; or

(b) is a director, secretary or trustee of the corporation, company, trust, partnership or association or body of persons.

Certificate (Section 4)

1. A foreign investor must not carry on business in a relevant activity in the Fiji Islands unless the Chief Executive has granted the foreign investor a Foreign Investment Registration 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 granting of a certificate to a foreign investor does not entitle the foreign investor as of right to any license or assistance for which the investor may be qualified.
4. The granting of a certificate to a foreign investor does not relieve the foreign investor of the duty to secure any approval from any other relevant authority that may be necessary for the activity proposed.

Application for Foreign Investment Certificate (Section 7)

1. A foreign investor may apply to the Chief Executive for a certificate.
2. If, there is a change in the address or in any other information after submitting an application, the foreign investor must notify the Chief Executive in writing of the change within 20 working days of the date of the change.
3. Written notice of the grant or refusal of an application under this section will be given to the foreign investor within 5 working days of the making of the application.

Certificate (Section 8)

1. 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 a reserved activity, the foreign investor may continue to carry on business in the activity as if it were not a reserved activity.
2. 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 a restricted activity, the foreign investor may continue to carry on business in that activity as if it were not a restricted activity.
3. If a foreign investor has been granted a certificate permitting the foreign investor to carry on business in a restricted activity; and a condition 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.
4. 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 by the date on which the prohibition is effective, and the certificate of the foreign investor in regard to the prohibited activity ceases to be in force on that date except that if the certificate were issued for more than one activity, the certificate remains effective for any activity that is not declared a prohibited activity.

Register of Certificate (Section 9)

1. All certificates granted or cancelled are registered with the FTIB.
2. If a certificate has been granted in respect of a restricted activity, particulars will be entered in the Register of the condition specified in the certificate relating to the carrying on of business in that activity.
3. The Register or an extract from the Register is prima facie evidence of the matters contained in it.
4. Any person may, on payment of the prescribed fee, obtain a copy of a Foreign Investment Registration Certificate; or an extract from the Register.

Register Open for Inspection (Section 10)

The register will be open for inspection during normal business hours.

Change of ownership of foreign investor (Section 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), or in any person associated with the foreign investor, the investor must, within 15 working days of the date of the change, notify the Chief Executive of the change.    Penalty: $5,000
2. If, as a result of a change in the shareholding or beneficial ownership of a national enterprise that carries on business in a relevant activity in the Fiji Islands, the national enterprise becomes a foreign investor, it must apply for certificate within 25 working days.
3. A certificate granted to a foreign investor is not transferable to any other person or body.

Variation (Section 12)

1. 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 (Section 13)

(a) A certificate may be cancelled if the Chief Executive is satisfied that a foreign investor:
(i) has obtained a certificate by fraud or misrepresentation, misstatement or omission of a material particular;
(ii) is in serious or persistent breach of the terms or conditions of a certificate or of this Act;
(iii) has ceased to carry on business in the activity or all of the activities in respect of which a certificate was granted; or
(iv) has not started to carry on business in any activity in respect of which a certificate was granted within 12 months after the grant of the certificate, without genuine reason; or
(b) circumstances arise which would require the Chief Executive not to grant a certificate.

Investment Guarantee (Section 14)

1. A foreign investor has the same protection under section 40 of the Constitution against compulsory acquisition of property as any other person.
2. A foreign investor has the same right as a national enterprise to recourse to the jurisdictions of courts or other tribunals of the Fiji Islands in respect of settlement of disputes.

Appeal to Minister (Section 15)

1. A foreign investor may appeal to the Minister within 25 working days of the making of a reviewable decision.

Prohibition on Foreign Investors (Section 16)

1. A foreign investor must not carry on business without a Foreign Investment Registration Certificate; directly or indirectly carry on business in a prohibited activity; directly or indirectly carry on business in a reserved activity; directly or indirectly carry on business in a restricted activity unless the investor meets all conditions; or fail to comply with the conditions of a Foreign Investment Registration Certificate. Penalty: $50,000
2. A person must not hold out that an enterprise is a foreign investor unless that enterprise holds a current valid certificate under this Act. Penalty: $20,000

Monitoring of Foreign Investors (Section 17)

1. Penalty for not allowing the Chief Executive to monitor business activities to ascertain compliance with the act; or for making any false statements is $20,000.
2. Penalty for not providing information concerning the business activities, as may be requested by the Chief Executive is $5,000.

Delegations (Section 18  

1. The Chief Executive for Commerce, Business Development and Investment may, in writing, delegate to the Deputy Chief Executive all or any of the Chief Executive’s powers under this Act.
2. The Chief Executive may, in writing, delegate to the Deputy Chief Executive of the Fiji Trade and Investment Bureau all or any of the Chief Executive’s powers under this Act.

FOREIGN INVESTMENT REGULATIONS 2009

Citation and Commencement

(1) These Regulations may be cited as the Foreign Investment Regulations 2009.
(2) These Regulations come into force on the 16th day of January, 2009.

Reserved Activities (Section 5)

1. Bus business                                        
2. Sightseeing tours, travel agent and tourist guide services
3. An office service business
4. Forestry (plant management & logging)

The above 4 business activities have been de-reserved.

Business activities above 1-3 are now classified as other activities which has a minimum investment requirement of F$250,000 in owner’s contribution or paid up capital for companies in the form of cash from the operational date, to be fully brought into Fiji within the implementation period.

Business activity No. 4 above is now categorised as a restricted activity and requires a foreign investor to undertake value adding and have at least $500,000 in owner’s contribution or paid up capital for companies in the form of cash from the operational date, to be fully brought into Fiji within the implementation period.

Full listing of 2009 Reserved List

The following activities are prescribed for Fiji Citizens only.

(a) A Milk Bar or Cafeteria Business;
(b) A Taxi Business;
(c) A Kava Business;
(d) Retail Sale Via Stalls and Markets;
(e) A Handicraft Business;
(f) Tailor Shops;
(g) Repair of Personal and Household Goods;
(h) A Plumbing Business;
(i) An Electrical Business;
(j) Plant Nursery and Care;
(k) A Day-care Centre;
(l) An Internet Café and Amusement and Gaming Centres;
(m) Home-stay Lodging Services;
(n) A Bakery Business, other than those operated within the vicinity of a hotel/resort and/or operated by foreign owned hotels/resorts;
(o) Backpacker Operations;
(p) A Nightclub, other than those operated within the vicinity of a hotel/resort and/or operated by foreign owned hotels/resorts; and
(q) A Liquor Bar, other than those operated within the vicinity of a hotel/resort and/or operated by foreign owned hotels/resorts.

Restricted Activities (Section 6)

2008 Restricted Activities which are now treated as Other Activities in FIR 2009:

1. Agriculture
2. Carpentry & joinery (inclusive of furniture manufacturing)
3. Boat building
4. Rental & hire cars or chartered land transport tour operator
5. Restaurant business
6. Hairdressing & other beauty treatment
7. Maintenance & repair of motor vehicles
8. Freight forwarding & customs house agent
9. Pest control & fumigation services
10. Advertising & marketing
11. Business & management consultancy
12. Retailing business
13. Distribution business
14. Laundry business
15. Bus business                                        
16. Sightseeing tours, travel agent and tourist guide services                 
17. An office service business                                                
(Business Activities 15, 16 and 17 were 2008 Reserved activities but are now classified as Other Activities in FIR 2009)

Full Listing of 2009 Restricted list

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

1. Fishing
At least 30 % equity held by Fiji citizen(s) and the foreign investor must have at least $500,000 in owner’s contribution or paid-up capital for companies in the form of cash from the operational date, to be fully brought into Fiji within the implementation period.

2. Forestry (Plant management & logging)
A foreign investor must undertake value adding and must have at least $500,000 in owner’s contribution or paid up capital for companies in the form of cash from the operational date, to be fully brought into Fiji within the implementation period.

3.  Manufacturing
(i)  Tobacco production
A foreign investor must use at least 75% locally grown and processed tobacco in all domestic cigarette production and must have at least $500,000 in owner’s contribution or paid-up capital for companies in the form of cash from the operational date, to be fully brought into Fiji within the implementation period.

4. Tourism
(i)  Cultural heritage
Any activity involving investment in the cultural heritage of the Fiji islands must have at least $500,000 in owner’s contribution or paid-up capital for companies in the form of cash from the operational date, to be fully brought into Fiji within the implementation period.

5. Services
(i)  Real Estate Management
A foreign investor engaging in real estate management and real estate agents must have at least $1m in owner’s contribution or paid up capital for companies in the form of cash from the operational date, to be fully brought within Fiji within the implementation period.

• A foreign investor engaging in the above real estate management activities needs to be certified under the Real Estate Agents Act.
• A foreign investor engaging in real estate activity in renting out of homes/villas/apartment/bures to tourists only must have at least $250,000 in owner’s contribution or paid up capital for companies in the form of cash from the operational date, to be fully brought within Fiji within the implementation period.

(ii) Real Estate Development
A foreign investor engaging in real estate development must have at least $5m in owner’s contribution or paid up capital for companies in the form of cash from the operational date, to be fully brought within Fiji within the implementation period.

(iii)  Construction
A foreign investor engaging in the construction industry must have at least $1m in owner’s contribution or paid up capital for companies in the form of cash from the operational date, to be fully brought within Fiji within the implementation period.

(iv) Earthmoving business
A foreign investor engaging in earthmoving business must have at least $1m in owner’s contribution or paid up catal for companies in the form of cash from the operational date, to be fully brought within Fiji within the implementation period.

(v) Island-island Shipping and Passenger Service (exclusive of tourism  support services)
A foreign investor engaging in inter-island shipping and passenger service must have at least $500,000 in owner’s contribution or paid up capital for companies in the form of cash from the operational date, to be fully brought within Fiji within the implementation period.

Other Activities:

Other than those activities listed under the Reserved and Restricted List all  other activities requires at least $250,000 in owner’s contribution or paid-up  capital for companies in the form of cash from the operational date, to be fully  brought into Fiji within the implementation period of the business.

Further information on the Foreign Investment Act & Foreign Investment Regulations can be obtained direct from:

Fiji Islands Trade and Investment Bureau
6th Floor, Civic Tower, Victoria Parade,
P O Box 2303, Government Building, Suva, Fiji
Tel: (679) 3315 988, Fax: (679) 3301783
e-mail: info@ftib.org.fj