The Government of Switzerland shall act as Depositary.
IN WITNESS WHEREOF, the undersigned, being duly authorised thereto, have signed this Agreement.
Done at Hong Kong, this 15th day of December 2005, in a single original in the English language, which shall be deposited with the Government of Switzerland. The Depositary shall transmit certified copies to all Signatory States.
| Sector: | All Sectors |
| Sub-sector: | |
| Legal source or authority of the measure: | Law No. 7281, Articles 4, 5, 6 and 7 of the Foreign Investment Promotion Act, Dec. 31, 2004; Presidential Decree No. 18736, Articles 6, 7 and 8 of its Enforcement Decree, Mar. 8, 2005;Ordinance of the Ministry of Commerce, Industry and Energy No. 269, Articles 2, 3, 4 and 5 of its Enforcement Regulations, Apr. 8, 2005 |
| Succinct description of the measure: | A foreigner who intends to make a foreign direct investment shall, in advance, make report to the Minister of Commerce, Industry and Energy in accordance with the Ordinance of the Ministry of Commerce, Industry and Energy. The same shall apply to any modification of matters such as the amount of foreign direct investment and the ratio. Korea reserves the right to prohibit or restrict a foreign direct investment in the cases where it threatens the maintenance of national safety and public order, has harmful effects on public hygiene or the environmental preservation of the Republic of Korea or is against Korean morals and customs, or violates any relevant Act of the Republic of Korea. The term “foreign direct investment” shall refer to any of the following: (a) Where a foreigner purchases, under the conditions prescribed by the Presidential Decree, stocks or holdings of a Korean corporation (including a Korean corporation in the process of being established) or a company run by a national of the Republic of Korea, for the purpose of establishing a continuous relationship with and participating in the management of said Korean corporation or company;(b) Where a loan with the maturity of not less than five years is extended to a foreign-capital invested company by its overseas holding company or by a company in a relationship with said holding company of the capital investment prescribed by the Presidential Decree. |
| Purpose or motivation of the measure: | Statistical purposes and review for incentives. Maintenance of national security and public order |
| Sector | All Sectors |
| Sub-sector: | |
| Legal source or authority of the measure: | Not applicable |
| Succinct description of the measure: | With respect to the transfer or disposal of stocks or assets held in an existing state-owned or government entity in such industries as electricity and gas, Korea reserves the right to prohibit or restrict the ownership of such interests or assets. Korea also reserves the right to prohibit or limit the rights of foreign investors to control a company or investment created in such a process. For the purposes of this reservation: (a) any measure maintained or adopted after the date of entry into force of this Agreement which, at the time of the transfer or disposal, prohibits or restricts ownership of such interest or assets or imposes the nationality requirements set forth herein shall be considered to be a measure in force; and (b) a “state-owned company” shall mean any company owned or controlled by Korea by means of an interest share in the ownership thereof, and shall include any company created after the effective date of this Agreement for the sole purpose of selling or disposing its interest share in the capital or assets of an existing state or government entity. |
| Purpose or motivation of the measure: | National security and protection of public interest |
| Sector: | All Sectors |
| Sub-sector: | |
| Legal source or authority of the measure: | Law No, 7297, Articles 4, 5 and 6 of the Foreigner’s Land Acquisition Act, Dec. 31, 2004 |
| Succinct description of the measure: | The Republic of Korea reserves the right to maintain or adopt any measures with respect to land acquisition by foreigners. Present measures, inter alia, are as follows: a) When a foreign national, foreign legal entity, foreign government or an international organization (hereinafter referred to as a “foreigner’) has signed a contract for acquisition of land within the territory of the Republic of Korea, a report of the acquisition must be made to the head of the si/gun/gu [city/county/district(within a city)] within 60 days from the conclusion of the contract. Penalties are assessed in cases of violations. b) In cases of land designated for national defense, cultural protection and ecosystem/wildlife protection, among others, permission from the head of the si/gun/gu is required prior to the conclusion of the contract for land acquisition. Contracts concluded without such permission are invalid and punishable. c) Any land acquired by a foreigner by means of inheritance, auction, or any cause other than contracts shall also be reported to the head of si/gun/gu within 6 months of the acquisition. Violations are assessed with penalty fees. d) When a national, a juridical person or an organization of the Republic of Korea with ownership of land changes nationality and wishes to maintain ownership of the land, a report must be made to the head of si/gun/gu within 6 months from the change of nationality. |
| Purpose or motivation of the measure: | This measure is designed for achieving efficient land use and analyzing land acquisition by foreigners. |
| Sector | All sectors |
| Sub-sector: | Capital Transactions of Non-Residents |
| Legal source or authority of the measure: | Law No. 6316, Foreign Exchange Transaction Act, Dec. 29, 2000 |
| Succinct description of the measure: | A non-resident is subject to authorization from the Minister of Finance and Economy or the Governor of the Bank of Korea in the following cases: (a) when receiving won-denominated loans or borrowing won denominated securities from a resident, which exceeds a certain amount (1 billion won for won-denominated loans and 5 billion won for won-denominated securities) pursuant to the Foreign Exchange Transaction Act; and (b) when issuing won-denominated securities with short-term maturities. Residents are subject to authorization from the Minister of Finance and Economy or the Governor of the Bank of Korea in cases when non-residents grant short-term financial credit to a financially unsound domestic enterprise designated in the Foreign Exchange Transaction Act, or grant financial credits to domestic individuals or non-profit institutions, which are guaranteed by or are based on collaterals from other residents. Authorization is required from the Governor of the Bank of Korea in case a non-resident receives foreign currency denominated financial credits, guarantees or collaterals from residents as set out in the Foreign Exchange Transaction Act. Authorization is required from the Governor of the Bank of Korea for a non-resident to make a certain transaction by means of derivatives that is not permitted under the Foreign Exchange Transaction Act. |
| Purpose or motivation of the measure: | National security and financial stability |
| Sector: | All Sectors |
| Sub-sector: | |
| Legal source or authority of the measure: | Not applicable |
| Succint description of the measure: | The Republic of Korea reserves the right to maintain or adopt any measure with respect to such activities as the purchase of non-voting stocks in services sectors. |
| Purpose or motivation of the measure: | Protection of public interest, cultural diversity and identity, and national security |
| Sector: | Agriculture, Forestry, Livestock and related Manufacturing |
| Sub-sector: | |
| Legal source or authority of the measure: | Law No. 7281, Article 4 of the Foreign Investment Promotion Act, Dec. 31, 2004; Presidential Decree No. 18736, Article 5 of its Enforcement Decree, Mar. 8, 2005; Law No. 6821, Article 27 of the Livestock Industry Act, Dec. 26, 2002; Law No. 7311, Articles 17, 43 and 47 of the Act on Distribution and Price Stabilization of Agricultural and Fishery Products, Dec. 31, 2004; Law No. 7433, Grain Management Act, Mar. 31, 2005; Law No. 7167, Articles 5 and 90 of the Forestry Act, Feb. 9, 2004; Law No. 7335, Articles 25 and 32 of the Forestry Management Act, Jan. 14, 2005 |
| Succinct description of the measure: | Only Korean citizens and Korean legal entities are allowed to own and manage enterprises engaged in rice or barley cultivation and farming of beef cattle in the Republic of Korea. Foreign nationals or foreign legal entities are permitted to hold the shares or stocks of legal entities engaged in the above mentioned fields up to the ceiling set under the relevant laws. In addition to these measures, the Republic of Korea reserves the right to maintain or adopt any measure necessary for food security, public health and conservation of environment and resource in the fields of agriculture, forestry, livestock and related manufacturing (excluding metal and machinery). |
| Purpose or motivation of the measure: | Food security, public health and conservation of environment and resources |
| Sector: | Air Transport Service |
| Sub-Sector: | CPC 731, 732 Air Transport Services. Includes glider towing, parachute jumping, aerial construction, heli-logging, aerial sightseeing, etc. CPC 734 Rental Services of aircraft with operator |
| Legal source or authority of the measure: | Law No. 7428, Articles 3, 6, 112, 113, 114 and 132 of the Aviation Act, Mar. 31, 2005; Ordinance of the Ministry of Construction and Transportation No. 430, Articles 278, 278.2, 298 and 299 of its Enforcement Regulation, Mar. 11, 2005 |
| Succinct description of the measure: | Any person who falls under the categories stipulated in subparagraphs of Article 6 of the Aviation Act (and listed below) may not provide domestic services, nor international services (scheduled/non-scheduled): 1. A person who is not a citizen of the Republic of Korea; 2. a foreign government or foreign public organization; 3. a foreign corporation or organization; 4. a corporation in which any of those referred to in 1 through 3 above either owns 50% or more of the stocks or shares, or wields de-facto control; and 5. a corporation whose representative is a foreigner, or half or more of whose officers (executives) are foreigners. In addition, persons who own an aircraft or are authorized to operate a chartered aircraft must register the aircraft with the Minister of Construction and Transportation. Registration of aircraft is not permitted to persons falling under 1 through 5 above. |
| Purpose or motivation of the measure: | Measures affecting trade in services included in the above sector, which is not covered by Chapter 3 (Trade in Services) of the Free Trade Agreement |
| Sector: | Air Transport Service |
| Sub-sector: | Aircraft Use Business. CPC 734* Rental Services of aircraft with operator [* Includes aerial fire-fighting, forestry fire management, aerial advertising, flight training, aerial map production, aerial investigation, aerial spraying, aerial photographing and other aerial agricultural activities, aerial inspections and observations, etc.] |
| Legal source or authority of the measure: | Law No. 7428, Articles 3, 6 and 134 of the Aviation Act, Mar. 31, 2005; Ordinance of the Ministry of Construction and Transportation No. 430, Articles 298 and 299.2 of its Enforcement Regulation, Mar. 11, 2005 |
| Succinct description of the measure: | A person who intends to operate an aircraft-use business (businesses that use aircraft at other’s request to conduct businesses other than transport of passengers or cargo for fee) must register the self-owned or chartered aircraft with the Minister of Construction and Transportation. In this case, registration of aircraft is not permitted to persons falling under any one of the following categories: 1. A person who is not a citizen of the Republic of Korea; 2. a foreign government or foreign public organization; 3. a foreign corporation or organization; 4. a corporation in which any of those referred to in 1 through 3 above either owns 50% or more of the stocks or shares, or wields de-facto control; and 5. a corporation whose representative is a foreigner, or half or more of whose officers are foreigners. |
| Purpose or motivation of the measure: | Measures affecting trade in services included in the above sector, which is not covered by Chapter 3 (Trade in Services) of the Free Trade Agreement |
| Sector: | Defense Industry |
| Sub-sector: | |
| Legal source or authority of the measure: | Law No. 7281, Article 6 of the Foreign Investment Promotion Act, Dec. 31, 2004 |
| Succinct description of the measure: | The Republic of Korea reserves the right to maintain or adopt any measure with respect to investments in the defense industry. Foreign investors who intend to acquire the outstanding shares (stipulated in Article 2 of the Foreign Investment Promotion Act) of defense industry (the enterprise stipulated in Article 2 of the Act on Special Measures for Defense Industry) other than the newly issued ones shall obtain a prior permission from the Minister of Commerce, Industry and Energy. |
| Purpose or motivation of the measure: | The defense industry is a special industry which provides and develops weapons related to national security. Especially since Korea is facing a very high security threat, Korea intends to reserve the level of investment necessary for national security. |
| Sector: | Electric Energy |
| Sub-sector: | Electric Power Generation other than Nuclear Power Generation Electric Power Transmission and Distribution |
| Legal source or authority of the measure: | Law No. 7428, Article 203 of the Securities and Exchange Act, Mar. 31, 2005; Presidential Decree No. 18757, Article 87.2 of its Enforcement Decree, Mar. 28, 2005; Law No. 7281, Article 4 of the Foreign Investment Promotion Act, Dec. 31, 2004; Presidential Decree No. 18736, Article 5 of its Enforcement Decree, Mar. 8, 2005; Regulations No. 2004-51, Article 5 of the Regulations on Foreign Investment and Technology Inducement, Nov. 26, 2002 |
| Succinct description of the measure: | The Republic of Korea reserves the right to maintain or adopt any measure with respect to privatization of the electric power industry including generation, transmission, distribution and sales. Foreign investors are prohibited from holding more than 40 per cent of shares or stocks of Korea Electric Power Corporation (hereinafter “KEPCO”) or be the largest shareholder of KEPCO. Foreign investment in power transmission, distribution and sales business is permitted only when the investment ratio is less than 50%. The largest shareholder of the company must be a Korean citizen. |
| Purpose or motivation of the measure: | Consistency with the privatization plan of the electric power industry and protection of public interest |
| Sector: | Financial Services |
| Sub-sector: | Korea Development Bank and Export-Import Bank of Korea |
| Legal source or authority of the measure: | Law No. 6679, Article 4 of the Korea Development Bank Act, Mar. 30, 2002; Law No. 7527, Article 4 of the Korea EXIM Bank Act, May 31, 2005 |
| Succinct description of the measure: | Foreigners are not allowed to invest in both Korea Development Bank and Korea EXIM Bank. |
| Purpose or motivation of the measure: | Korea Development Bank and Korea EXIM Bank are financial institutions for the implementation of national industrial policies aids |
| Sector: | Financial Services |
| Sub-sector: | Investments in financial products and capital transactions through new financial services etc. |
| Legal source or authority of the measure: | Not applicable |
| Succinct description of the measure: | The Republic of Korea reserves the right to maintain or adopt necessary measures on investments in financial products and capital transactions through new financial services etc. for the purpose of stabilizing the financial system. |
| Purpose or motivation of the measure: | Financial system stability |
| Sector: | Firearms, Swords, Explosives |
| Sub-sector: | |
| Legal source | Law No. 7428, Articles 4, 6, 9, 11, 12, 17, 18, 21, 24, 25, 26, 28, or authority 41, 42, and 47 of the Control of Firearms, Swords, Explosives, etc. Act, Mar. 31, 2005 |
| Succinct description of the measure: | The Republic of Korea reserves the right to maintain or adopt any measure affecting the firearms, swords, explosives, etc. sector. The manufacture, use, sale, storage, transport, importation, exportation and possession of firearms, swords, explosives, etc, are regulated for protection of security interests and maintenance of public order. |
| Purpose or motivation of the measure: | Protection of security interests and maintenance of public order |
| Sector: | Fishing Industry |
| Sub-sector: | |
| Legal source or authority of the measure: | Law No. 5809, Articles 4, 5, 6 and 8 of the Law of the Exercise of Jurisdictional Rights over Fishing by Foreigners in the EEZ, etc., Feb, 5, 1999; Law No. 7477, Article 5 of the Fisheries Act, Mar. 31, 2005 |
| Succinct description of the measure: | The Republic of Korea reserves the right to control fisheries- related activities by a foreign individual or corporation in the waters under its jurisdiction. Should a foreign individual or corporation invest in a corporation set up under the legislation of the Republic of Korea or in a Korean national in an attempt to run a fisheries-related business, the head of the local government concerned (governor, mayor of a metropolitan city or gun [county], executive officer of a gu [district] ) should have prior consultations with the Minister of Maritime Affairs & Fisheries. |
| Purpose or motivation of the measure: | With weak competitiveness, the fishery industry of the Republic of Korea needs restrictions to access to the domestic market by foreign entities in order to ensure its minimum competitiveness. |
| Sector: | Gas Industry |
| Sub-sector: | |
| Legal source or authority of the measure: | Law No. 6836, Article 19 of the Act on Improvement of Management Structure and Privatization of Public Corporation, Dec. 30, 2002, Article 11 of the Articles of Incorporation of Korea Gas Corporation, Mar. 30, 2000 |
| Succinct description of the measure: | The Republic of Korea reserves the right to maintain or adopt any measure with respect to the gas industry. In the gas sector, Korea Gas Corporation (KOGAS) performs public functions like import and wholesale of natural gas and operation of the national trunk line. Foreigners’ holdings of KOGAS stocks are limited according to law. |
| Purpose or motivation of the measure: | The need for national energy security |
| Sector: | Nuclear Industry |
| Sub-sector: | Nuclear Power Generation Manufacturing and Supply of Nuclear Fuel Radioactive Waste Disposal |
| Legal source or authority of the measure: | Law No. 7508, Article 12 of the Electricity Business Act, May 26, 2005; Law No. 7281, Article 4 of the Foreign Investment Promotion Act, Dec. 31, 2004; Presidential Decree No. 18736, Article 5 of its Enforcement Decree, Mar. 8, 2005; Regulations No. 2004-51, Article 5 of the Regulations on Foreign Investment and Technology Inducement, Nov. 26, 2002 Law No. 7428, Articles 11, 21, 33, 34, 43, 57, 64, 76, 86 and 90.4 of the Atomic Energy Act, Mar. 31, 2005 |
| Succinct description of the measure: | The Republic of Korea reserves the right to maintain or adopt any measure with respect to the nuclear industry. Foreign investors are prohibited from operating a nuclear power generation business — i.e. manufacturing and supply of nuclear fuel for nuclear power plants, business related to the operation of nuclear plants, and radio active waste management. Foreigners are prohibited from investing in nuclear power generation. |
| Purpose or motivation of the measure: | The special treatment of the nuclear industry which is connected directly with national security |
| Sector: | All sectors |
| Sub-sector: | |
| Legal source or authority of the measure: | Law No. 138/1994 Respecting Private Limited Companies, Law No. 2/1995 Respecting Public Limited Companies, Law No. 34/1991 on Investment by Non-Residents in Business Enterprises |
| Succinct description of the measure: | The majority of the founders of a private limited company or a public limited company must be resident in Iceland or another EEA (1) Member State. The Minister of Commerce can grant exemptions from these restrictions. The manager/-s and at least half the board of directors of a private limited company or a public limited company must be resident in Iceland or another EEA Member State. The Minister of Commerce can grant exemptions from these restrictions. |
| Purpose or motivation of the measure: | To secure that the legal venue of the majority of the board of directors and managers is within Icelandic jurisdiction |
| Sector: | All sectors |
| Sub-sector: | |
| Legal source or authority of the measure: | Law No. 19/1966 on the Right to Own and Use Real Estate, Law No. 34/1991 on Investment by Non-Residents in Business Enterprises |
| Succinct description of the measure: | Only Icelandic citizens and Icelandic legal entities and citizens and legal entities from another EEA Member State are allowed to own real estate in Iceland unless the ownership and use is linked to an investment in real estate pertaining to the business activity of the investor. The same applies to the hiring of a real estate if the duration of the lease lasts for more than 3 years. These restriction do not apply to a non-EEA citizen who has been residing in Iceland for at least five years. The Minister of Justice can grant exemptions from these restrictions. |
| Purpose or motivation of the measure: | Fluctuations in real estate prices due to possible excess foreign demand can adversely affect the domestic market for housing and summer houses (secondary homes) |
| Sector: | Fisheries |
| Sub-sector: | Fishing, whaling |
| Legal source or authority of the measure: | Law No. 22/1998 on the Fishing and Fish processing of Foreign Vessels in Iceland’s Economic Zone, Law No. 34/1991 on Investment by Non-Residents in Business Enterprises, Law No. 26/1949 on Whaling |
| Succinct description of the measure: | Only Icelandic citizens and Icelandic legal entities under Icelandic control are allowed to fish in the Icelandic economic zone. The same applies to whaling |
| Purpose or motivation of the measure: | The relative economic importance of the fishing industry for Iceland, with fish and fish products constituting around half of the country’s foreign earnings, as well as Iceland’s determination to maintain a sustainable yield from its fishing stocks. The control and surveillance regarding the preservation of Icelandic fish stocks needs to be under Icelandic jurisdiction. |
| Sector: | Fisheries |
| Sub-sector: | Fish Processing |
| Legal source or authority of the measure: | Law No. 34/1991 on Investment by Non-Residents in Business Enterprises |
| Succinct description of the measure: | Only Icelandic citizens and Icelandic legal entities are allowed to own and manage enterprises engaged in fish processing in Iceland. Fish processing in this context is freezing, salting, drying and any other process used to initially preserve fish and fish products, including melting and meal processing. This reservation does not apply to secondary fish processing |
| Purpose or motivation of the measure: | The reservation on fish processing is an integral part of retaining control in the field of fishing and whaling. The relative economic importance of the fishing industry for Iceland, with fish and fish products constituting around half of the country’s foreign earnings, as well as Iceland’s determination to maintain a sustained yield from its fishing stocks. The control and surveillance regarding the preservation of Icelandic fish stocks needs to be under Icelandic jurisdiction. |
| Sector: | Fisheries |
| Subsector: | Fish Auctioning |
| Legal source or authority of the measure: | Law No. 123/1989 on the Auctioning of Fish |
| Succinct description of the measure: | Only Icelandic citizens and Icelandic legal entities are allowed to own and manage enterprises engaged in fish auctioning in Iceland |
| Purpose or motivation of the measure: | The reservation on fish auctioning is an integral part of retaining control in the field of fishing and whaling. The relative economic importance of the fishing industry for Iceland, with fish and fish products constituting around half of the country’s foreign earings, as well as Iceland’s determination to maintain a sustained yield from its fishing stocks. The control and surveillance regarding the preservation of Icelandic fish stocks needs to be under Icelandic jurisdiction. |
| Sector: | Aviation |
| Sub-sector: | Air transport |
| Legal source or authority of the measure: | Law No. 34/1991 on Investment by Non-Residents in Business Enterprises |
| Succinct description of the measure: | Only Icelandic citizens and legal entities, and citizens and legal entities from another EEA Member State can own more than 49% of the shares of an enterprise engaged in air transport. |
| Purpose or Motivation of the Measure: | The need for extensive services in a small home market call for specific regulations and home country control. |
| Sector: | Energy |
| Sub-sector: | Energy production and distribution |
| Legal source or authority of the measure: | Law No. 34/1991 on Investment by Non-Residents in Business Enterprises |
| Succinct description of the measure: | Only Icelandic citizens and legal entities, and citizens and legal entities from another EEA Member State can own the right to harness hydroelectric and geothermal power other than for own personal home use. The same applies to investment in enterprises engaged in power production and power distribution. |
| Purpose or Motivation of the Measure: | Apart from the fish stock, hydroelectric power and geothermal power are Iceland’s most important natural resources. Their utilisation need to be centrally administered through licensing and co-generation agreements. The power production and power distribution are public utilities which to a large degree operate as public monopolies |
| Sector: | All sectors |
| Sub-sector: | |
| Legal source or authority of the measure: | Gewerbegesetz (Act on Commercial Law) of 10 December 1969, LR (Systematic Collection of Liechtenstein Law) 930.1, and relevant laws as mentioned in Article 2, paragraph | of that Act, as well as relevant Parliament or Government decisions. |
| Succinct description of the measure: | The establishment of a commercial presence by a juridical person (including branches) is subject to the requirement that no objection for reasons of national economy is made (balanced proportion of national and foreign capital; balanced ratio of foreigners in comparison with the number of resident population; balanced ratio of total number of jobs in the economy in comparison with the number of the resident population; balanced geographic situation; balanced development of the national economy, between and within the sectors). |
| Purpose or motivation of the measure: | To ensure a balanced development of the national economy taking into account the specific geographic situation of the country, its limited resources and the small labour market. |
| Sector: | All sectors |
| Sub-sector: | |
| Legal source or authority of the measure: | Gewerbegesetz (Commercial Law Act) of 10 December 1969, LR 930.1; Personen- und Gesellschaftsrecht (Company Law) of 20 January 1926, LR 216.0 |
| Succinct description of the measure: | The establishment of a commercial presence by an individual is subject to the requirement of prior residence during a certain period of time and of permanent domicile in Liechtenstein. The establishment of a commercial presence by a juridical person (including branches) is subject to the following requirements: At least one of the managers has to fulfil the requirements of prior residence during a certain period of time and of permanent domicile in Liechtenstein. The majority of the administrators (authorized to manage and represent the juridical person) must be residents in Liechtenstein and have either to be Liechtenstein citizens or have prior residence during a certain period of time in Liechtenstein. The general and the limited partnership have to fulfil the same conditions as corporations with limited liability (juridical person). In addition the majority of the associates have to be Liechtenstein citizens or to have prior residence during a certain period of time in Liechtenstein. The Liechtenstein company law does not prohibit joint stock companies from foreseeing in their articles of incorporation the preclusion or limitation of the transfer of registered shares. |
| Purpose or motivation of the measure: | To facilitate judicial proceedings |
| Sector: | All sectors |
| Subsector: | |
| Legal source or authority of the measure: | Agreement on the European Economic Area of 2 May 1992 (EEA Agreement) |
| Succinct description of the measure: | Treatment accorded to subsidiaries of third-country companies formed in accordance with the law of an EEA Member State and having registered office, central administration or principal place of business within an EEA Member State is not extended to branches or agencies established in an EEA Member State by a third-country company. Treatment less favorable may be accorded to subsidiaries of third countries having only their registered office in the territory of an EEA Member State unless they show that they possess an effective and continuous link with the economy of one of the EEA Member States. |
| Purpose or motivation of the measure: | To ensure that benefits from the EEA Agreement are not automatically accorded to third countries |
| Sector: | All sectors |
| Subsector: | |
| Legal source or authority of the measure: | Grundverkehrsgesetz (Law on the acquisition of real estate) of 9 December 1992, LR 214.11 |
| Succinct description of the measure: | All acquisitions of real estate are subject to authorization. Such authorization is granted only if an actual and proven requirement for living or business purposes is given and a certain period of residence has been completed. Non-residents are excluded from the acquisition of real estate. |
| Purpose or motivation of the measure: | Extreme scarcity of available land. Preservation of access to real estate for the resident population and maintenance of a balanced geographic situation |
| Sector: | Power and Energy sector |
| Sub-sector: | |
| Legal source or authority of the measure: | Not Applicable |
| Succinct description of the measure: | Liechtenstein reserves the right to maintain or adopt any measure with respect to investments in the power and energy sector. |
| Purpose or motivation of the measure: | Energy policy considerations and national security |
| Sector: | Air Transport |
| Sub-sector: | Air Registration |
| Legal source or authority of the measure: | Aviation Act of 15 Mai 2002, LR 748.0 and Agreement between Liechtenstein and Switzerland on civil aviation of 27 January 2003, LR 0.748.091.11 |
| Succinct description of the measure: | Aircraft may not be registered in Liechtenstein unless they are wholly owned by Liechtenstein citizens or by foreign nationals who reside in Liechtenstein and use the aircraft mainly for travel originating in Liechtenstein or Switzerland, or by companies based and registered in Liechtenstein. |
| Purpose or motivation of the measure: | To ensure an effective tie between aircraft and their owners |
| Sector: | Air Transport |
| Sub-sector: | Holdings in Liechtenstein air transport companies |
| Legal source or authority of the measure: | Aviation Act of 15 Mai 2002, LR 748.0 and Agreement between Liechtenstein and Switzerland concerning civil aviation of 27 January 2003, LR 0.748.091.11 |
| Succinct description of the measure: | Access of foreign firms to commercial transport of persons and goods is governed by international agreements. In the absence of such an agreement, foreign firms may be granted concessions to operate certain commercial transport routes. To obtain such a concession, a foreign enterprise must, inter alia, have a legal residence in Liechtenstein. A foreign holding in a Liechtenstein air transport company may normally not exceed 40 per cent of the latter’s share capital. |
| Purpose or motivation of the measure: | Air transport policy |
| Sector: | Air Transport |
| Sub-sector: | Assistance Services |
| Legal source or authority of the measure: | Aviation Act of 15 Mai 2002, LR (Systematic Collection of Liechtenstein Law) 748.0 |
| Succinct description of the measure: | Liechtenstein applies European Union Directive 96/67. Airport authorities may limit the number of providers for certain services by permanent limitations or temporary measures. Article 20 of the Directive contains a reciprocity clause |
| Purpose or motivation of the measure: | Limited space for airport infrastructure. (note: to date Liechtenstein has no airport infrastructure) |
| Sector: | All sectors |
| Sub-sector: | |
| Legal source or authority of the measure: | Federal Act of 30 March 1911 (Code of Obligations) supple- menting the Swiss Civil Code (Systematic Collection of Federal Laws and Regulations [RS], No, 220) |
| Succinct description of the measure: | - The vast majority of companies in Switzerland are organized as corporations (Société anonyme [SA] — Aktiengesellschaft {AG/), featuring a predetermined capital and shareholders’ liability limited to the nominal capital invested. Of the members of the board of directors of a Swiss corporation, the majority must be Swiss citizens residing in Switzerland. Exceptions are possible in the case of holding companies. - Limited liability companies (Société a responsabilité limitée [Sarl] - Gesellschaft mit beschrankter Haftung [GmbH]) are characterized by a limited capital divided into quotas. In a limited liability company, at least one managing officer must be residing in Switzerland. - A foreign company may also establish one or several branch offices in Switzerland. At least one representative of a branch office must be residing in Switzerland. |
| Purpose or motivation of the measure: | To facilitate judicial proceedings |
| Sector: | All sectors |
| Sub-sector: | |
| Legal source or authority of the measure: | Federal Act of 16 December 1983 on the Acquisition of Real Estate by Persons Abroad (RS 211.412.41) |
| Succinct description of the measure: | Foreign nationals not residing in Switzerland and companies established, or controlled from, abroad are not allowed to invest in the residential property market (except for residential property directly linked to a business presence) and in agricultural real estate. For the acquisition of vacation homes, a cantonal permit is required. |
| Purpose or motivation of the measure: | Scarcity of available land |
| Sector: | Energy |
| Sub-sector: | Oil Prospection and Exploitation |
| Legal source or authority of the measure: | Concordat of 24 September 1955 on Oil Prospecting and Exploitation (RS 931.1) |
| Succinct description of the measure: | The inter-cantonal agreement (among 10 cantons) stipulates that oil concessions may be granted only to companies that are at least 75 percent Swiss-owned. Other cantons apply similar restrictions. |
| Purpose or motivation of the measure: | Energy policy considerations and national security |
| Sector: | Energy |
| Sub-sector: | Nuclear energy |
| Legal source or authority of the measure: | Federal Act of 23 December 1959 on the Peaceful Uses of Atomic Energy (RS 732.0); Federal Decree of 8 October 1978 relative to the Atomic Energy Act (RS 732.01) |
| Succinct description of the measure: | Authorization to construct and operate nuclear facilities is granted only to Swiss citizens domiciled in Switzerland and legal persons that are subject to Swiss law, headquartered in Switzer- land and Swiss-owned. |
| Purpose or motivation of the measure: | Energy policy considerations and national security |
| Sector: | Energy |
| Sub-sector: | Hydroelectric power |
| Legal source or authority of the measure: | Federal Act of 22 December 1916 on the Uses of Hydroelectric Power (RS 721.80) |
| Succinct description of the measure: | When granting concessions, cantons take public interest considerations into account (they may in particular require the concession-holder to have its registered office in the relevant canton). |
| Purpose or motivation of the measure: | Energy policy considerations and national security |
| Sector: | Energy |
| Sub-sector: | Pipelines |
| Legal source or authority of the measure: | Federal Act of 4 October 1963 on Pipelines for Liquid or Gaseous Fuels (RS 746.1) |
| Succinct description of the measure: | For foreign-owned or controlled companies a registered office and management presence in Switzerland is required. |
| Purpose or motivation of the measure: | Energy policy considerations and national security |
| Sector: | Air Transport |
| Sub-sector: | Aircraft Registration |
| Legal source or authority of the measure: | Federal Aviation Act of 21 December 1948 (RS 748.0) |
| Succinct description of the measure: | Aircraft may not be registered in Switzerland unless they are wholly owned by Swiss citizens or by foreign nationals who reside in Switzerland and use the aircraft mainly for travel originating in Switzerland, or by companies based and registered in Switzerland. |
| Purpose or motivation of the measure: | To ensure an effective tie between aircraft and their owners |
| Sector: | Air Transport |
| Sub-sector: | Holdings in Swiss air transport companies |
| Legal source or authority of the measure: | Federal Aviation Act of 21 December 1948 (RS 748.0) |
| Succinct description of the measure: | Access of foreign firms to commercial transport of persons and goods is governed by international agreements. In the absence of such an agreement, foreign firms may be granted concessions to operate certain commercial transport routes. To obtain such a concession, a foreign enterprise must, inter alia, have a legal residence in Switzerland. A foreign holding in a Swiss air transport company may normally not exceed 40 per cent of the latter’s share capital. |
| Purpose or motivation of the measure: | Air transport policy |
| Sector: | Air Transport |
| Sub-sector: | Assistance Services |
| Legal source or authority of the measure: | Airport Regulations |
| Succinct description of the measure: | Switzerland applies European Union Directive 96/67. Airport authorities may limit the number of providers for certain services by permanent limitations or temporary measures. Article 20 of the Directive contains a reciprocity clause. |
| Purpose or motivation of the measure: | Limited space for airport infrastructure. |
| Sector: | All sectors |
| Sub-sector: | |
| Legal source or authority of the measure: | Not applicable |
| Succinct description of the measure: | Collective copyright or neighbouring rights’ management systems; royalties, levies, grants and funds, designed to preserve and promote linguistic and cultural diversity. |
| Purpose or motivation of the measure: | |
