Other Foreign Direct Investment Grants & Incentives

Foreign direct investment (FDI) is a category of investment that reflects the objective of establishing a lasting interest of a foreign direct investor's business in a foreign jurisdiction.  The general consensus for the definition of FDI according to the Organisation for Economic Co-operation and Development (OECD), is that FDI represents any direct or indirect ownership of 10% or more of the voting power of an enterprise resident in one economy by an investor resident in another economy.

The investor may be classified in any sector of the economy and could be any one of the following:

• an individual
• a group of related individuals
• an incorporated or unincorporated enterprise
• a public or private enterprise
• a group of related enterprises
• a government body
• an estate, trust or other societal organisation
• any combination of the above

The investor may acquire 10% or more of the voting power of an enterprise in an economy through any of the following methods:

• by incorporating a wholly owned subsidiary or company
• by acquiring shares in an associated enterprise
• through a merger or an acquisition of an unrelated enterprise
• participating in an equity joint venture with another investor or enterprise

Types of Foreign Direct Investment Incentives

From a macroeconomic perspective, FDI is a more stable form of investment than any other types of capital flows. Developing countries and emerging economies are keen to attract FDI as a foreign enterprise’s participation in a domestic market encourages technology transfer, human capital training and best business practice in the form of corporate governance.

FDI incentives may take the following forms:
 

• low corporate and income tax rates
• tax holidays
• other types of tax concessions
• preferential tariffs
• special economic zones
• investment financial subsidies
• soft loans or loan guarantees
• free land or land subsidies
• relocation & expatriation subsidies
• job training & employment subsidies
• infrastructure subsidies
• R&D support
• derogation from regulations (usually for very large projects) 

Our Expertise

We provide a complete solution for clients in respect of their international venture, and have considerable experience in the following:

• provision of recommendations and suggestions in respect of choice of jurisdiction having regard to the business needs and requirements of each enterprise and taking into account economic, fiscal, infrastructure policies and the political climate of each country
• liaison with special economic zone operators and government authorities for the procurement of FDI incentives (where non-automatic)
• establishment of foreign-owned enterprise in the country
• arrangement of ancillary business and/or corporate services to be provided to the enterprise

 
Our key expertise is our knowledge of the political, legal and regulatory climate of individual countries within the Asia-Pacific region and we have advised many businesses on the same.

 Information on Fees & Charges

(a) Fee Structure

We do not waste our client's time and money in incurring needless charges and expenses.  Our fees are quoted on a fixed-fee basis, rather than by the hour, and are extremely competitive.

(b) Enquiries

Please submit an enquiry if you would like to discuss your requirements with us.  Alternatively, you may wish to contact us.