Czech National Bank measure No. 93 / 1995 Coll.
Czech National Bank's action on direct investment in relation to the countries of the European Communities
Valid
Measures
Text versions:
08.06.1995
93
MEASURES
Czech National Banks
of 20 April 1995
on direct investment in relation to countries of the European Communities
The Czech National Bank pursuant to § 41 (2) and § 36 (b) of the Czech National Council Act No. 6 / 1993 Coll., on the Czech National Bank, and § 13 (3) of the Foreign Exchange Act No. 528 / 1990 Coll., as amended by Act No. 228 / 1992 Coll., for the implementation of Article 61 of the Europe Agreement establishing an association between the Czech Republic, of the one part, and the European Communities and their Member States, of the other part, 1) provides:
(1) Foreign domestic investments (2) with the exception of banks (3) may be made freely in the Member States of the European Communities, i.e. Belgium, Denmark, Finland, France, Ireland, Italy, Luxembourg, Germany, the Netherlands, Portugal, Austria, Greece, Spain, Sweden, Great Britain and Northern Ireland, and direct investments from the listed countries of the European Communities may be freely accepted.
(2) Paragraph 1 shall not apply to direct investment in islands forming part of the territory of the Member States of the European Communities but having a certain degree of autonomy (e.g. Man and Jersey Islands). It shall also not apply to direct investment in the non-European territories of the Member States of the European Communities.
(1) A direct investment shall be an investment designed to establish, acquire or expand permanent economic relations between an investor of one country and an undertaking established in another country which has the following forms:
(a) the establishment or extension of an exclusively owned undertaking, the acquisition of exclusive ownership of an existing undertaking;
(b) participation in a new or existing undertaking where the investor obtains at least 10% of the assets of the undertaking or voting rights;
(c) a loan for five or more years granted to an undertaking under (a) or (b) by an investor or associated with a profit-sharing agreement;
(d) use of profit from the existing direct investment for its expansion (reinvestment of profit).
(2) Direct investment may take place through the deposit of funds, certain items, rights or other assets (e.g. copyright, know- how) into the company's capital, the purchase of securities (e.g. shares, provisional certificates, units) or the provision of funds under a credit agreement.
(1) Deviza4) (hereinafter referred to as "the Bank") shall make a payment or transfer relating to the direct investment referred to in paragraphs 1 and 2 on presentation of documents proving the right to invest directly,
(a) an officially certified copy of the contract or other instrument proving the existence of an investor's undertaking, in the case of a loan pursuant to Article 2 (1) (c), as well as of a credit agreement or other proof of the inception of the contract;
(b) an extract from the business register, an officially certified copy of the trade certificate or other similar document relating to the business of the investor, if any, 5)
(c) the arrangements for the purchase of property securities in order to create a direct investment in that way;
(d) an order to transfer funds abroad.
(2) The foreign exchange seal shall attach to the direct investment cards referred to in paragraph 1 a completed declaration form in accordance with Paragraph 4 (1). Reporting of direct investment is the fulfilment of reporting obligations under the Foreign Exchange Code.6) The right to establish a participation in the Member State of the European Communities under Article 1 shall not be affected by this.
(1) Announcement of a direct investment in the Czech National Bank registration will be made by the foreign exchange seal as follows:
(a) when establishing a new undertaking or entering an existing undertaking and reinvesting the profits referred to in Article 2 (1) (a), (b) and (d) on a DEV (ČNB) form 4- 50 (Annex 1);
(b) when granting a monetary credit to foreign exchange residents (7), in accordance with Section 2 (1) (c), using the DEV (CNB) form 6-50 (Annex 2);
(c) upon receipt of a monetary credit from a foreign exchange alien in accordance with § 2 (1) (c) using a DEV (CNB) form 5- 50 (Annex 3).
(2) The reporting obligation shall be fulfilled by submitting three copies of the form completed to the bank at the time of the submission of the order for payment or within 20 days of receipt of the payment from the foreign exchange stranger from the credit agreement. The Bank shall confirm compliance with the reporting obligation on all copies of the declarations, one of which shall be returned to the reporting agent, one shall attach to the documentation of the cash transaction carried out and one shall transmit to the relevant branch of the Czech National Bank within five days of the end of each month. The notification shall be made at each payment of cash.
(3) If the foreign exchange seal makes payments through a bank other than the one through which the direct investment was reported, it shall draw the bank's attention to the documents of the direct investment and to the fulfilment of the reporting obligation. The Bank shall verify these facts with this other bank. The verification may be replaced by the presentation by the foreign exchange seal of a copy of the declaration for inspection. In the absence of a link of cash performance to a direct investment, the foreign exchange domestic order shall not be executed by the bank.
(1) In the case of direct investment which is not a cash performance, the foreign exchange seal shall notify the Czech National Bank of the investment within 20 days of the date of the transfer of the right to foreign exchange exchange foreign exchange exchange. The declaration shall be accompanied by a direct investment card,
(a) an officially certified copy of the contract or other instrument proving the existence of an investor's undertaking, including its cash valuation;
(b) an extract from the business register or a certified copy of the business certificate or any other similar document relating to the business of the investor, if any, in the case of an entrepreneur.
The notification shall be made by the foreign exchange pencil on two copies of the DEV form (ČNB) 4-50 (Annex 1), which shall be submitted to the branch of the Czech National Bank responsible for the business or permanent residence of the natural person who is not an entrepreneur. The branch shall confirm compliance with the reporting obligation on both copies, one of which shall be returned to the reporting agent.
(2) If the investment is extended by cash execution after the notification referred to in paragraph 1, the procedure laid down in paragraph 4 (3) shall be followed accordingly.
(3) The Czech National Bank, the branch responsible under paragraph 1, shall also be notified of changes in the content of the investor relationship pursuant to § 2, in particular the change in the amount of the business share or the disappearance of the direct investment. The notification shall be made within 20 days of the date of the legal event.
(1) Foreign exchange permits issued under the Special Act (2) before 1 February 1995 for the establishment of holdings and other investments referred to in Article 2 of this measure are not affected and remain in force in the Member States of the European Communities. The right resulting from the foreign exchange permit shall not be subject to restrictions and conditions where they are contrary to the measure.
(2) The obligations provided for by measure Česká národní banka No 11 of 22 November 1993 providing for the submission of statements by persons other than banks Česká národní banka (amount 76 / 1993 Coll.), as amended by measure Česká národní banka No 6 of 28 November 1994 (amount 1 / 1995 Coll.), are not affected by this measure.
This measure shall take effect on the day of its publication.
Governor:
v. Ing. Vít v. r.
Vice-Governor
Příloha č. 1
Annex No 1
NOTIFICATION OF DIRECT INVESTMENT IN FOREIGN)
Příloha č. 2
Annex No 2
NOTIFICATION OF THE MONEY CREDIT GRANTED TO THE FOREIGN COUNTRIES)
Příloha č. 3
Annex No 3
ANALYSIS OF THE MONEY CREDIT CLAIMS ACCEPTED FROM THE FOREIGN COUNTRIES)
1) Communication from the Ministry of Foreign Affairs No. 7 / 1995 Coll.
2) Article 5 of Foreign Exchange Act No 528 / 1990 Coll., as amended by Act No 228 / 1992 Coll.
3) § 1 of Act No. 21 / 1992 Coll., on Banks, as amended by Act No. 264 / 1992 Coll., No. 292 / 1993 Coll. and No. 156 / 1994 Coll.
4) Paragraph 3 (1) of the Foreign Exchange Act.
5) Paragraph 5 (3) of the Foreign Exchange Act.
6) Articles 9 and 15 of the Foreign Exchange Act.
7) Paragraph 5 (2) of the Foreign Exchange Act.
(x) pursuant to § 2 (1) (a), (b), (d) of measure CNB No... / 1995
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Regulation Information
| Citation | Czech National Bank measure No. 93 / 1995 Coll., on direct investment in relation to countries of the European Communities |
|---|---|
| Regulation Type | Measures |
| Author | - |
| Collection | Code of Laws |
| Date of Promulgation | 08.06.1995 |
|---|---|
| Effective from | - |
| Effective until | - |
| Status | Valid |
The regulation text is for informational purposes only.
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