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Currently, foreign investment is regulated by Law 16-95 on Foreign Investment, adopted on November 20, 1995, and the Presidential Decrees 380-96 and 163-97. These legislations provide an attractive legal framework for foreign investors and one of the main tools to promote the flow of capitals to the country.
Law 16-95 allows almost any type of foreign investors to buy through the commercial banks the foreign currency needed to remit abroad all the capital invested and the dividends obtained from the investment.
This law also sets the principle of equal treatment between nationals and foreign investments, securing them the same legal protection, without any discrimination. In that sense, Law 16-95 abolished Article 12 of Law 173 of 1966 on the Protection of Agents and Licensees, thus allowing foreign persons and companies to register under such law as agents or representatives of foreign firms, and benefit from the protection granted to the local agent in case of unjust termination of its agreement by the foreign company.
Foreign investors may participate in any sector of national economy, without any limitation outside those provided in the special laws that regulate each sector. Foreign investment can take form of capital contributions, in-kind contributions, intangible technological contributions, such as trademarks, product models, industrial procedures, technical assistance and others, and financial instruments issued and traded abroad that have been authorized by the Monetary Board. Those foreign investments can be destined to the capital of any type of business association, including branches of foreign companies, the purchase of real estate property, and the acquisition of shares or other financial instruments authorized by the Monetary Board.
As registration procedure the investor has just to notify its investment to the Central Bank within 90 days after its placement in the country in order to automatically obtain a Certificate of Foreign Investment Registration.
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