GPC decision No. 499 for 2010

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4995

GPC decision No. 499 for 2010 for issuance of the executive rules of Law No. 9 for 2010 concerning encouragement of investment

 

 Article (1)

The executive rules of Law No. 9 for 2010 concerning encouragement of investment are approved.

 

Article (2)

This decision will be applied from date of issue, to be executed by concerned authorities and published.

 

 

GPC
Issued on 27.11.2010

 

 

Section One

General provisions

Article (1)

 

Identification

In applying the provisions of the rules, the following words and expressions have the meanings against each unless the context indicates otherwise:

  • State – G S P L A J
  • Law encouraging investment – law No. 9 for 2010 concerning encouragement of investment
  • Authority – the public authority for ownership transfer and investment
  • Concerned secretary – GPC secretary of industry, economy and trade
  • Investment site – any open space or real estate on which the investment project is constructed according the conditions and procedures specified in the effective legislations
  • Raw materials – raw materials or partially manufactured which are necessary for operating the investment project
  • Project’s legal form – the legal form owning the investment project or supervises its administration
  • Decision for approval – the decision issued by the concerned secretary permitting construction of the investment project
  • Execution license – the license which is issued by the authority by which execution of the investment project will commence
  • License for exercising activity – the license which is issued by the authority and by which the investment project will commence its activity

 

Article (2)

Estimation of the quota in kind and moral

If the invested fund contains quota in kind or moral, its value will be estimated by agreement between the investment project’s parties after its approval by an approved legal accountancy office or expertise house  outside Libya which is approved by people’s bureau office or Libyan people’s office or the replacement abroad.

 

Article (3)

Reinvestment of profits

The control for reinvestment of the investment project will be specified by the concerned secretary on presentation from the authority

 

Article (4)

Investment fields

It is allowed to invest capital stated in article (2) of these rules in all productive and service fields with the exception of the fields for exploration, extraction and marketing of oil and gas.

The decision for specifying the fields which are limited for Libyans only or participation with foreigners and percentage of each side in the investment project will be issued by GPC on presentation of proposal from the concerned secretary.

 

Article (5)

Capital of the investment project

The minimum limit of foreign capital or in case of participation with national capital in the invest project is five million dinars.

The minimum limit of the national capital in the investment project will be two million dinars.

Any project which achieves one of the considerations stated in article (15) of the law by decision from the concerned secretary on presentation from the administration committee.

 

Article (6)

Permission for investment

Permission is issued for construction or innovation or rehabilitation or management and operation of the investment project by decision from the concerned secretary on presentation of offer from the authority.  The authority alone will issue the licenses and necessary approvals of the investment project so that these licenses and permits will replace any licenses and other permits which are decided in the effective legislations.

The investor who obtained license for investment according the provisions of these rules will have the right to extend the project or to develop it or to make addition or amendment of some activities related to it.  The investor should provide the authority with detailed memo stating type and amount of work to be carried and to attach general assembly’s decision in this respect and a decision will be issued from the concerned secretary on presentation of offer from the authority.

 

 

 

Article (7)

Suspension of granting permits

Granting permits for construction of investment projects may be suspended in some fields or for a specific period by decision of the concerned secretary on presentation of an offer from the authority.

 

Article (8)

The legal forms which exercise the investment

The activity of an investment project is exercised according provisions of these rules and effective legislations through all legal forms stipulated in the commercial law; the investment project is registered in the investment register with the authority according the procedures and regulations stated in these rules with the exception of individual activity, tsharokiat and joint stock companies.

Section Two

Applications and granting licenses

 

Article (9)

Submission of applications

Investment applications will be submitted by the concerned or the legal person on his behalf to the authority in a special form; and applications may be submitted through the commercial attaché in people’s offices abroad or the assigned official and these entities will relay the applications to the authority once received.

Investment applications will be according the following:

  1. Construction of investment project
  2. Innovation of investment project with at least 20% of the investment expenses
  3. Management and operation of existing productive or service projects

Article (10)

Required documents for investment

Applicant should attach with his application the following documents:

  1. Understanding memo between founders concerning construction of the project to be approved by attorney or one of the people’s offices abroad according the procedures and effective legislations
  2. Approval of the foreign company’s board of directors in case no other partner will enter with it in the project.
  3. Proposal including 3 options for the investment project’s name
  4. Memo on the invest project including the following:
  • Amount of capital to be invested and its nature converted in Libyan dinars or in one of the convertible currencies at time of submission of application
  • The imported and local materials to be used in the project
  • The technical specifications of the investment project
  • The periodical schedule specified for execution of the investment project
  • Estimation of national and foreign labor force to operate the investment project and schedule for replacement of national labor instead of the foreign labor during the first five years operation
  1. Certificate certifying investor’s nationality from the competent authority in his country in respect of the foreign investor
  2. Official extract from the commercial register of the country of origin of the foreign corporate body

The documents submitted on the project which are mentioned in the paragraphs (4 and 5) should be original and approved by people’s office or brotherhood office abroad.

 

 

Article (11)

The data which are included in the receipt

Applicant is given a receipt including the following data:

  1. Number and date for submitting the application
  2. Applicant’s name, surname, nationality and occupation
  3. Name and signature of the official who received the application
  4. Details of documents attached with the application
  5. The desired field for investment

 

Article (12)

Project’s name

The authority will issue certificate in the name of the investment project according the proposed options of the investor stating project’s investment in this name to distinguish it from other projects constructed in the same field in the investment register.

 

Article (13)

Registration of applications

Applications when received are registered in a special register with serial numbers according dates of receipt and each application will be kept in a special file for all documents, papers and related correspondence.

Number of the application as well as the name of the concerned, his address, telephone number, email, nationality, project’s name and the sector in which it will be invested will be recorded on the cover.   Statement of the lodged papers and documents, its serial numbers in the file with dates and numbers of pages and dates for submission will be recorded in the file’s cover inside.

 

Article (14)

Partition of applications

The investor who wishes to construct various investment projects should submit application to the authority to execute each project separately and should issue for each project a license for execution and a license for exercising activity and the decision which is issued from the concerned secretary

 

Article (15)

Discussion of the applications

 

The Investment Authority should manage the study of the applications and prepare their required recommendations including it’s the Authority view in the investment project and stated its usefulness to national economy within a period of thirty days from date  of completing the required documents and presenting its suggestions and recommendations to the concerned Secretary.

 

Article (16)

Informing the applicant

 

The Investment Authority should inform the applicant in written by direct admission or by a message showing the approval or the refusal of the investor application by the Secretary within ten day from receiving the approval or refusal decision by the Investment Authority.

 

Article (17)

The Unified window

 

The Investment Authority should manage the establishing of centers for presenting the unified window services to the investors which related to the measures of the investment applications including the services of all related sides and some of  them are:-

  1. Duties Department.
  2. Taxes Department.
  3. Retirement Fund.
  4. The Commercial Banks.
  5. Passports, Nationality and Foreigners Affairs.
  6. Labor Department.
  7. Insurance Companies.
  8. The Commercial Record.
  9. The General Authority of Environment.
  10.  GPC for Agriculture, Animal and Maritime Wealth.
  11. The General Authority of Industrial Areas.
  12. The General Authority of Tourism and Traditional Industries.
  13. Building Planning Department.
  14. The General Company of Electricity.
  15. GPC for Health and Environment (Medical specializations council).
  16. Specifications and Standards Center.

It is permitted to add other authorities to the unified window according to the request of the Investment Authority.

 

Article (18)

Registration in the Commercial Record

 

The cases in which the applications of investors are not registered before to have the legal approval of investment should be registered according to the following:-

  1. If the investors are more than one natural or responsible person, citizen or foreigner or by participation, they should submit the establishment contract and the basic system which are approved by contracts editor after the issuance of the investment approval decision. The concerned administration of the Investment Authority should present them to the concerned authority to be inserted in the Commercial Record through the unified window.
  2. If the legal shape of the investment applicant is a branch of a foreign company, the branch should submit the establishment contract and the basic system of the original company which should be approved at the Libyan Embassy in that country after issuing the investment decision. The concerned administration of the Investment Authority should present them to the concerned authority to be inserted in the Commercial Record through the unified window.

 

 

Article (19)

The establishing of the Investment Record

 

Special record should be prepared and named (The Investment Record) for registering all approved investment projects and each project should have special pages in the Record to write on them the following statements:-

  1. Name of the project, its legal shape, its investment field, its activity, its location and main center.
  2. The value of the investment project capital and the paid amount of it.
  3. Name, nationality of the investor and his registration number in the Commercial Record.
  4. Name and surname of his legal representative, his position and his nationality.
  5. Number and date of the investment permit decision.
  6. Number and date of executing and practicing licenses for the project activity.
  7. Costs of the investment for project and the financing resources.
  8. Statement by the granted exemptions and the period of their validity, the facilities and the other privileges. Also, the statement of the contradictions, the type of punishments against the project and all legal changes which are done in project.
  9. Statement by the monetary and materialistic and spiritual of the shares which are forming the capital.
  10. Any other statements which are related to the investment project.

 

Article (20)

Registration in the Investment Record

 

The applicant who achieved approval permit to establish investment project should submit an application in accordance with the prepared form for the registration to be registered in the Investment Record enclosed with the following documents:

  1. The establishment contract and the basic system of the project owner or what is certifying his registration in the Commercial Record, or the establishment contract and the basic system of the original company if the project is branch of that company enclosed with decision from the administration council for establishing the branch and appointing the general manager and the legal representative in Libya.
  2. Authorization document in the specializations or authorizing by administration which is issued to the project manager and his legal representative which should include clear statement by its specializations and the validity period of the authorization.
  3. A specimen signed by the project manager or his legal representative in the State.
  4. A certificate from the concerned authorities certifies the opening the project account and depositing the capital of the investment project or part of it which should not be not than (200000 L.D) two hundred thousand Libyan Dinar at any case. The deposit should not need issued approvals regarding the improvement. Part of this money can be transferred from abroad Libya in case of finding foreign partnership according the ratio of partnership that agreed on between the partners.

After the completion of all statements and the documents which are specified in this Article, a certificate should be issued to the owner certifying his registration in the Investment Record according to the form which is prepared by the Investment Authority for this purpose.

The investor has the right to insert all contractions which he signed for the studies or the designs or the work of execution and employment in the Investment Record and he should submit the origin of the contract and a new formal certificate for the second party in the contract.

 

Article (21)

The granting of certificates, documents and licenses

 

The Investment Authority should manage the granting of the required certificates, documents and licenses to owner of the investment according to his request and it should present the services against paying fees which are decided by the concerned Secretary according to presentation from the Investment Authority.

 

Article (22)

The granting of the execution licenses

 

The investor should be granted a license for the executing project of investment according to his request after completing the following documents:-

  1. The required timetable for executing the investment project.
  2. Bringing what may certify the ownership or the benefit or the rent of the site of the investment project.
  3. All technical approvals regarding the exploitation of the site according to its specification and uses.
  4. The approval of the technical specifications, architectural designs and the drawing of the investment project from the concerned authorities.
  5. The financial evaluation of the investment project.
  6. The payment of the required fees for achieving the execution license.

The administration and offices of the Investment Authority should manage the check of presented documents in their place. The execution licenses should be renewed each six month and the investor should submit the renewal application on the specified time.

 

Article (23)

The granting of the practice licenses

 

The investor should be granted a license for practicing project of investment according to his request after completing the following documents:-

  1. The opening Budget for the investment project.
  2. The financial status from date of practicing the activity to show the assets and the size of the investment which existed in the development condition.
  3. Statement of the raw materials types and quantities which are exploited in the operation experiments.
  4. Statement of designing and producing energy or the collecting energy during the year.
  5. Statement by the number of the national and foreign employment and the table of replacing the foreign employment by the national employment.
  6. The payment of the required fees for achieving the execution license.

The administration and offices of the Investment Authority should manage the check of presented documents in their place. The execution licenses should be renewed each six month and the investor should submit the renewal application on the specified time.

 

The third chapter

Exemptions and privileges

 

Article (24)

The Exemption

 

The investment project which is subjected to law rules is enjoyed the following exemptions:-

  1. All the taxes, the customs duties, fees of supply services and the other taxes and customs which are mentioned in the taxes legislations and the taxes of the same effect on the machines, instruments and equipments that required for executing the investment project from date of achieving the executing license until granting him the practice license.
  2. All the taxes and fees what ever is their type and resource on the preparations, spare parts, means of transport, furniture, the needs, the raw materials, the advertising  and announcement subjects which are related to the operation and administration of the investment project for five years started from date of granting the practice license to the investment project.
  3. Production tax, the fees and customs duties which are imposed on the export and the commodities which are produced for the export.
  4. Income tax on the activity for five years from date of granting the practice license to the project investment.
  5. all taxes and fees on the revenues of the shares and quotas as result of distributing the benefits of the investment project and the benefits of integrating or sale or dividing of it or changing its legal situation for five years from date of granting it the practice license and the benefits which resulted on the activity of the investment project if they are re-invested.
  6. The stamp tax which is specified by the rules of the effective legislations on all documents, actions and work which are established or signed or used in the investment project along the execution period and the validity period of the exemption after the operation from date of issuing the approval decision by the concerned Secretary.
  7. Any fees on the investment capital.
  8. Consumption tax on the operation materials and the fees of supplying services for five years from date of granting the activity practice license for the investment project.
  9. The investor has the right to transfer the loss to the coming years during five years from date of granting the activity practice license for the investment project.

The mentioned exemptions in this Article should not include the imposed fees on the port, storage and the handling revenues.

 

Article (25)

The conditions of the exemptions

 

The investment project should be enjoyed by the exemptions which are mentioned in the previous Article according to the suitability of the following conditions with the type of exemption:-

  1. The investment license should be valid.
  2. The exemption materials should be imported by the name of investment project and for its interest.
  3. The exemption imported materials (from quality and quantity) should be suited with the size and type of the investment project.
  4. The local products should be given the priority for the competition.
  5. To be committed by using the exemption materials in the investment project and not to take action on them to the other authorities unless they achieved a written pre- permit from the Investment Authority.
  6. Filling the form which is prepared by the Investment Authority for the exemption from the income tax.
  7. To submit the annual budget of the investment project.
  8. The decision of re-invest the benefits.
  9. The commitment by the law rules and its executive regulations.

 

Article (26)

The specifications of the projects which enjoyed exemption for additional period

 

It is permitted to extend the exemptions period which is granted to the investment project for a period of not more than three years in case of fulfilling one of the following purposes:-

  1. If the investment project is established in areas of place development which are specified by the General Popular Committee of the concerned sector.
  2. Its contribution in fulfilling the food security by concentrating on producing a lot of seeds and exploiting the cultivated areas perfectly or developing the animal wealth and its products or establishing the food industries which depend on the local raw materials.
  3. Its contribution in fulfilling a lot of energy or water or contributing on the environment protection when it depended completely or partially on exploiting the solar energy or on any type of the new and continuing energy or using irrigation system to reduce the consumption and waste of water or using advanced equipments and machines to reduce the consumption of the energy and the fuel burning or coming out the cars a lower ratio of the Carbon which will assist on the environment protection.

A decision from GPC should be issued to extend the period of exemptions for each investment project according to presentation from the concerned Secretary.

 

Article (27)

The private units and the exemption from the fees and tax duties

 

The private economic units and the targeted by privatization and which fulfill the targets and conditions of the Investment Law with its all privileges and exemptions in case of developing and re-qualifying them or administrating and operating them by issuing decision regarding them from the GPC according to presentation from the concerned Secretary.

 

Article (28)

Discussion for extending the period of exemption

 

The administration committee of Investment Authority should submit recommendation to the concerned Secretary for extending the period of exemptions which is mentioned in the Article (24) and granting the additional privileges which are mentioned in this regulation according to presentation from the owner of the investment project after fulfilling the conditions of Article (25).

 

Article (29)

The Privileges

 

It is permitted by decision from GPC according to presentation from the concerned Secretary to grant the following privileges according the area in which the investment project is located as follows:

  1. To State should bear the costs of the infrastructure and the main installations of the general facilities including the drainage, water, electricity, gas and the post.
  2. The priority for allocating the investment areas.
  3. The exemption or reduction in the price of benefiting from the land.
  4. The contribution in the training of the national employment which is working in the investment project.
  5. The contribution in the advertising and announcing for the investment project.

 

Article (30)

Additional privileges at the investment attracting areas

 

The lands of the State should be divided into categories according to the investment attracting areas and some categories should have additional privileges. These areas should be specified by decision from GPC according to presentation from the concerned Secretary.

 

Article (31)

Taking measures in the machines and the equipments

 

It is not permitted to take measures in the- machines, equipments, furniture, means of transport, spare parts, raw materials and the imported operation instruments for the purposes of the investment project- by sale or giving up them inside the State except in case of having approval from Investment Authority after paying all the fees and custom taxes which are decided for importing them.

 

Article (32)

The Import and the re-export

 

It is permitted for the investment projects to import temporary the machines, equipments and the instruments which are used for purposes of the executing or operating the investment projects and re-export them exempted from the Guarantee fees according to the following conditions:-

  1. Taking pre-permit from the Investment Authority.
  2. The imports should not be entered in the assets of the project.

 

Article (33)

The rights of the investor

 

The investor has the right in the following:-

  1. Opening an account for his investment project by the local and the foreign currency at one of banks which are working in Libya.
  2. Taking loans from the banks, the local and foreign financing corporations according to the effective legislations.
  3. Re-export the invested foreign capital in case of expiring the period of the investment project or clearing or selling it partially or completely.
  4. Re-transfer the foreign capital abroad by the same way of importing it after expiring six month from date of its import if it faced any difficulties or hard circumstances above the power of the investor.
  5. Transfer the distributed pure benefits and the revenues which are achieved by the foreign capital that invested in the investment project.
  6. The employing of the foreign employment in case of not finding the national alternative.
  7. To achieve the residence for five years can be renewed for all period of the investment project and to achieve multiple exit and re-entry visa.

 

Article (34)

The refund of un-invested capital

 

It is permitted for the investor to re-transfer abroad his foreign capital which is not invested by the same way of importing it and it is permitted for the national investor to refund his capital according to the following cases and conditions:

  1. After passing six month from date of transferring the money which will be invested inside Libya and it did not achieve the required licenses and approvals of the project or starting its execution.
  2. If the investor faced difficulties or circumstances he does not have any relation with them which prevent him to invest his capital.

He should submit application in the specified specimen to the Investment Authority enclosing in it a certificate from the bank in which he deposited his capital showing in it the pure deposited money and the reasons and circumstances which prevented his investment and the supporting documents for if they are found.

After the approval on the application, the Investment authority will write to the bank for refunding the money which is mentioned in the application according to the approved measures in this regard.

 

Article (35)

The refund of invested capital

 

The investor has the right to refund his capital abroad by the way he imported it according to application submitted to the administration committee Secretary of the Investment Authority in one of the following cases:

  1. Expiration of the investment project period.
  2. Clearing of the investment project.
  3. The sale of investment project partially or completely.

The administration committee Secretary of the Investment Authority -within a period of not more than two month after approving the application – should write to the bank which the account of the investor is in it for completing the measures of transferring the mentioned money abroad.

 

Article (36)

The rights of the foreign employment in the project

 

The foreign employees should have contracts for working in the investment projects which have license to transfer abroad Libya their salaries and any other continued financial privileges granted to them from the investment project after paying the required fees or taxes according to the effective legislations. Their personal luggage is exempted from the customs fees including the personal means of transport, instruments, the electronic equipments, the furniture and the other personal properties.

 

Article (37)

The use of the employment

 

The investor should be committed to save jobs for the Libyans by ratio of less than (30%) of the employment size in the project and should train the national employment to give them the skills and the technical and administrative experience to be employed in the place of the foreign employment. The investor is permitted to bring the foreign technical experiences which are required for the establishing and operating of the investment project in case of not finding them in the Libyan by pay attention to the legislations rules of the labor.

 

Article (38)

The benefit by the real-estates and the lands

 

The investor has the right to take benefit by the real-estates and the lands according to the following controls:-

  1. That should be for establishing or operating the project or to accommodate the employees in it.
  2. The real-estate should suitable for the purpose of taking benefit from it.
  3. The building or the lands should be prepared for its required purpose to establish the project or operating it and its use should not be contradicted to the approved building planning and it should not cause damage to the environment.
  4. The site should be used for its purpose and to start using it within the specified period and a limited time and in case of not being committed by it, the site will be withdrawn and the allocation will be cancelled. The investor has the right in the real-estate field for purchase benefit contracts or renting his real-estates with the employees not more than the period of his benefit from the investment site according to the applicable laws and regulations.

 

Article (39)

Receiving of the sites

 

The Investment Authority should manage to receive the sites which are specified for establishing investment projects according to the following:-

  1. The lands which are owned by the State after preparing their drawing should be presented to the Real-estates and the State Properties Registration Department for re-registering them as investment sites for the benefit of the Investment Authority.
  2. The lands which are more than the need of the privatized economic units, the Investment Authority should allocate them for establishing investment projects by giving priority to the units which are located in the area of those lands if they submit allocating applications for establishing individual investments projects or participating with the others.

 

Article (40)

Allocation of the sites

 

A committee should be established to allocate the investment sites of the investment Authority represented in it the related sectors and the corporations which are

Specialized for facilitating and finishing the investment sites according to the priority and the conditions of the investment project and the allocation should be done after specifying the value for taking benefit from it according to the applicable legislations. The committee should register those real-estates or the lands by the name of the State.

The Investor is not permitted to sell or to take measure for transferring the ownership except in case of having approval from the Investment Authority.

The rent contracts should be signed with the investors through the approved plans and their period should not be more than (70) seventy years for the foreign investor and the compensation should be paid for the lands which are owned by the citizens through the specified value. It is permitted to use the value of the rent for compensating the citizens and it is permitted for the investment authorities to invest in the private lands as real-estate investment according to the approved plans and effective legislations.

 

Article (41)

Value of the lands

 

The value of the State lands-which are for the investment- should be specified according to rules of this regulation and effective legislations.

 

Article (42)

The division of the lands benefit contract

 

If the authority which the State had allocated for it the lands is not committed by starting the execution of the investment projects within six month from date of possessing them and registering them in Department of the Real-estate Registration and the State Properties, the Investment Authority has the right to cancel the contract of allocating the lands and their ownership should be returned to the State and the investor has no right to request any compensation except the refund of the paid value for the signed contract.

 

The fourth chapter

General rules

 

Article (43)

Guarantees of the project

 

It is not permitted to generalize the project or taking by force its ownership or confiscating it or imposing guard in it or freezing it keeping it or subjecting it to measures of the same effect according to the law or judicial rule for fare compensation. The compensation is counted on base of the justice market value for the project when taking measure and it is permitted to transfer the compensation value by currencies which are transferable within a period of one year from date of issuing the law or the rule and by the exchange price during the transfer.

 

Article (44)

Commitments of the investor

 

The investor should be committed by the following:

  1. To start in the execution of the project with six month from date of informing him by the approval to establish the project according to the rules of this regulations and the execution should be finished in the period agreed on during presenting the application. It is permitted for the Authority administration committee for topical reasons to extend the appointment to another suitable period. If the site of the investment project is allocated by the Authority, the execution period will start from the date of receiving the investment project by the investor without any obstacles.
  2. The project execution should be done according to the drawing and the specifications which are enclosed with the presented application in which the execution license is issued.
  3. To keep the accounting records which are mentioned in the commercial activity law and present the final accounts and the general budget of the project after being approved by the company administration council and legal accountant who is approved annually to the Taxes Department and the Investment Authority.
  4. To provide the Investment Authority by annual reports about the project activity and any extension or development occurred on it.
  5. Priority should be given national employees ratio of not less than (30%) from the employment ratio when the technical skills are found for filling the jobs and work which the project required and the preparation for replacing the foreign employment by Libyans through the training programs and the improving of the efficiency.
  6. To inform the Authority about and change or amendment occurred on the investment project or on the legal status of the investor.
  7. Priority should be given to the use of the local products and raw materials.
  8. To submit any lists or statements or documents which are requested by the Investment Authority during the period which is specified in the application.

Article (45)

Taking measure in the project

 

It is permitted to transfer the ownership of the project from investor to another completely or partially by the sale or giving up after presenting application to Authority including full details about the project, date and number of license decision, the nationality of the applicant and statements about his technical and financial abilities and the reasons of taking this measure. The action of taking measure in the project should not be effective except after fulfilling the following conditions:

  1. To pay attention to the specified participation ratios between the national and the foreign capital.
  2. Commitment from the new owner to continue in the same activity.
  3. The approval of the company general assembly or all owners in case of existing more than one owner.
  4. The approval of the Authority administration committee.

 

Article (46)

The legal transfer of the ownership

 

The actions of transferring the ownership of the shares or quotas in each legal responsible body which is contributing in the investment project should be subjected to the rules of the commercial activity law and the rules of the commercial law in the State of the location if the responsible legal body is a branch of a foreign company and the Authority should informed by that.

 

Article (47)

Insurances on the investment

 

It is permitted for the investor to insure on the investment project at the concerned international and national corporations which guaranteed the investment and the

Investment Authority should issue the recommendations and the approvals for that by taking in account the agreements which are signed between Libya and the other countries in this regard.

 

Article (48)

The following up of the projects

 

The Investment Authority should follow up of executing the investment projects which are licensed to be established and should prepare periodic reports about them.

The employees of the Investment Authority should be officers of the judicial control by practicing their work according to the law and the other related control authorities should coordinate with the Investment Authority in case of doing any work of the inspection or control on the licensed investment projects.

 

Article (49)

The attention

The Investment Authority should issue the attentions when it is necessary for guiding and improving the progress of the investment projects according to the rules of the investment encouragement law to contribute in its successfulness and ensure the fulfilling of the economic and social development targets in the general policy of the State.

Article (50)

The caution

If the investor violated one of the commitments which are mentioned in the investment encouragement law or this regulation after the attention, he should be informed by that and the Secretary of the administration committee of the Investment Authority should issue the caution on the investor in order to correct the contradiction within a particular period specified in written caution before taking measure of punishment.

 

Article (51)

Depriving the investment project from some exemptions and privileges

 

The Investment Authority should deprive the investment project from some exemptions and privileges for a period specified by the decision if the investor committed one of the following contradictions:

  1. To contradict the conditions of enjoy by the exemptions which are granted to the investment project.
  2. To contradict the controls of this regulation regarding the employment of the national and foreign employees.
  3. To neglect the keeping of the legal records and the final accounts of the project according to the occupational standards.
  4. Not to be cooperated with Authority when doing the following up work or the delay in preparing the periodic reports about the activity of the project and providing the Authority by the lists, the statements and the documents.
  5. The repetition of achieving caution for the same contradiction.

The investor should be informed by the decision of depriving after its issue and it should be generalized on the concerned authorities and should be written in the record of the investment record.

 

Article (52)

The withdrawal of the approval decision

 

It is permitted to present a recommendation to Secretary of the concerned sector for the withdrawal of the approval decision of establishing the investment project in the following cases:

  1. If the investor did not start the measures of registering in the investment record and did not achieve the execution license of the investment project within six month from date of issuing the approval decision.
  2. If the Authority found that the investor is not serious for executing the investment project or unable financially or technically to execute the project.
  3. If the Authority found that the investor presented incorrect statements and documents which effected on the issue of the approval decision.

The concerned investor should be informed by the decision of withdrawing the approval on his address which is shown in application and the project should be cancelled from the investment record if it was registered and the investment Authority should issue special list containing the names which are issued for them approvals and they are withdrawn according to the rules of this Article for taking them in account when they present new applications.

Article (53)

The withdrawal of the licenses

 

It is permitted to the administration committee of the Authority to withdraw the license of execution and practice if the investor committed one of the following contradictions:-

  • The investment project is completed in the specified timetable which is prepared priory without acceptable justification
  • Contradiction of the conditions which are mention for transferring the ownership of the project completely or partially to another investor.
  • Contradiction of the controls which are mentioned in Article (33) for taking measure in the machines and equipments.
  • Contradiction of the project with the specifications and drawing which the license is issued for.
  • If the investor had changed completely the activity of the investment project to deny the required conditions for the investment projects.
  • The repetition of contradictions which are mentioned in the previous Article.

The withdrawal of the licenses should result the cancellation of the project from the investment record after withdrawing the investment site and returning it on the account of the investor by its first shape and situation before the allocation and all the rights and the financial commitments of the State should be achieved for enjoying the project with the exemptions and the privileged which benefited from. The withdrawal of the licenses is not preventing the Authority to present the matter at the judiciary to obligate the investor for paying the double of the exempted fees and taxes.

 

Article (54)

The clearing of the investment project

 

The Authority administration should do the clearing of the investment project in any of the following cases:-

  1. If the investor presented an application which is enclosed with the approval of the extraordinary general assembly for the clearing of project to the companies.
  2. If the project loss is more than the half of the capital.
  3. The expiration of specified period for the project and the investor did not request extension for it or the refusal of the extension application.
  4.  The impossibility for executing the project or continuity in practicing its activity.
  5. A decision is issued for the cancellation of the license.

In case of the Authority administration committee approval, a decision should be issued for the clearing and the investor should appoint the clarifiers for the clearing of the project and to prepare the budget of the clearing.  If the investor did appoint them within three month from date of issuing the clearing decision, the Secretary of Authority administration committee should appoint them by decision from him and investor should be responsible for paying the fees of the clarifiers and the cost of clearing measures.

 

 

Article (55)

The complaint

 

The investor should complain to from any decision resulted through implementing the rules of investment encouragement law within thirty days from date of informing him by the decision by a written message and the complaint should be presented in written to the Secretary of the Authority administration committee including the following statements:-

  1. Name and address of the investor.
  2. Date of issuing the decision of the complaining from and date of informing hi applicant.
  3. Statement about the complaint in clear and direct shape and its reasons enclosed with its supporting documents.

 

Article (56)

The discussion of the complaint

 

The Authority should take the required measures to discuss the complaint within thirty from date of receiving it and it has the right to inform the applicant of the complaint or his representative to attend to the Authority for completing the required explanations to achieve friendly solution. If the matter needed a measure from the concerned Secretary, a report should be transferred to him about the complaint enclosed by the view of the Authority to take the required decision on it without preventing the investor from the right of submitting to the judiciary.

 

Article (57)

The settlement of disputes

Any dispute between the investor and State by the investor or by measures which are taken against him from the State should be presented on concerned courts unless there is no bilateral agreement between Libya and the State of investor or multiple agreements and the State of the investor should be part in it and they should include items related to the arbitration or agreement between the investor and the State which contain the condition of arbitration.

Issued on: 23.11.2010

GPC

 

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