Mm-75i guruh talabasi Sulaymonov Ozodbek

MM-75i guruh talabasi

Sulaymonov Ozodbek


Ticket №13
1.Settlement of disputes in according to the legislation on guarantees and measures to protect the rights of foreign investors.

2.Rights and obligations of foreign investors.

3.Classification of investments.

Answers
1).

Foreign investments in the Republic of Uzbekistan recognizes all types of tangible and intangible benefits and their rights, including intellectual property rights, as well as any income from foreign investments invested by foreign investors in the business and other activities not prohibited by law, mainly for profit (income).

According to Article 4 of the Law of Uzbekistan “On foreign investments”,

“foreign investors in the territory of the Republic of Uzbekistan may be:

- Foreign states, administrative or territorial agencies of foreign states;

- International organizations based in accordance with the agreements or

other agreements;

- Legal entities, any other partnership or association, founded and operating

in accordance with the legis lation of foreign states;

- Individuals who are nationals of a foreign country and stateless persons”.

The enterprises with foreign investments on the territory of the Republic of

Uzbekistan are enterprises in which foreign investment is not less than 30% of shares (stakes) or the authorized capital. They operate in any organizational and legal forms not contradicting the legislation of Uzbekistan. According to the amendments made to the Act in 2018, the share of the foreign investor should not be less than 150 thousand dollars. In addition, the law stipulates forms of foreign investment, the rights and obligations of foreign investors, their business activities, responsibilities and powers of public authorities to foreign investment. By its nature and forms of foreign investments may be different. The following types of foreign investment can be identified by source of origin.

Talking about foreign investments, it is first necessary to distinguish between

public and private investment. Public investment (in international practice is also

called formal) - it means from the state budget, which are sent abroad or taken out

to address either directly to governments or int ergovernmental organizations. This

government loans, loans, grants (gifts), help the international movement of which

is determined by inter-governmental agreements. This includes loans and other funds from international organizations (for example, loans from the IMF). In this case we are talking about the relations between the states, which are governed by international treaties and to which the rules of international law. There may be diagonal relationship, when a consortium (group) private bank provides investment state as such. Under private equity refers to investments that provide private firms, companies or citizens of one country other relevant actors of the country. Investment relations are so complex and diverse that relations between states are often closely related to the relationship between individuals.

Before choosing a particular form of capital investment, foreign investors need to be sure that the recipient country has a favorable investment climate, which is determined by the level of political and economic stability, investment policies, currency stability and other factors.

Foreign investors may be:

1. A foreign legal entity, legal capacity is determined in accordance with the

law of the State where it is established and is entitled in accordance with the laws

of this state to invest in the country;

2. A foreign organization that is not a legal entity;

3. The capacity of a foreign citizen;

4. Permanently residing abroad and capacity of a person without citizenship;

5. An international organization that is entitled, in accordance with an

international agreement to invest in the country;

6. Foreign countries in accordance with the procedure established by federal

law.

Foreign investors may invest in other forms, not contrary to law.

Uzbekistan has created all necessary legal frameworks for the regulation of

investment activities, including:

Law of the Republic of Uzbekistan "On investment activity" dated

9.12.2014 (24.12.1998);

Law of the Republic of Uzbekistan "On foreign investments" dated

30.04.1998;

Law of the Republic of Uzbekistan "On guarantees and measures of

protection of rights of foreign investors" dated 30.04.1998;

Law of the Republic of Uzbekistan "On leasing" dated 10.04.1999;

Annually accepted government investment program of Uzbekistan approved

by the President of Uzbekistan;

Decree of the President of the Republic of Uzbekistan "On additional

measures to stimulate the attraction of direct private foreign investments“ №PF-3594 dated 11.04.2005;

Decree of the President of the Republic of Uzbekistan "On establishment of

free industrial and economic zone in Navoi” №PF-4059 dated 02.12.2008;

Decree of the President of the Republic of Uzbekistan № PQ -1442 “Program

of industrial development for 2011-2015" dated 15.12.2010;

The main objectives of the Act are:

- Promote the development of the economy of Uzbekistan and its

integration into the world economy by stimulating the inflow of foreign

investment;

- Recruitment and management of foreign financial, material,

intellectual and ot her resources, advanced foreign technology and management

experience.

2). Law of the Republic of Uzbekistan “On guarantees and measures of

protection of the rights of foreign investors,” aims to create a set of measures of

guarantees and protection of the rights of foreign investors in accordance with international treaties.Under this regulatory legal, instrument (Article 3) “if the subsequent legislation of Uzbekistan worsens condi tions of investment, for the foreign investors for ten years from the date of investment applies the law operated at the date of investment. The foreign investor has the right, in its sole discretion to apply the provisions of the new legislation, which improve the conditions of its investment”.

In the law, foreign investors granted such assurances as a guarantee against

nationalization, requisition, guarantee of funds at the discretion of the investor, guarantee the free transfer of funds and the return of foreign investment due to the termination of investment activities, free access to information, guarantee free movement on the territory of the Republic of Uzbekistan , protection of rights and the provision of additional guarantees established by law, de pending on the nature of the investment project.

According to the law of the Republic of Uzbekistan foreign investors have

the follow ing rights:

- Independence in the size, form and directions of implementation of

investments;

- Making agreements with individuals and legal entities in order to implement

investment activity;

- Owning, using and possessing investments and their results. According to the

legislation of the Republic of Uzbekistan and Foreign investors’ decisions,

owning, using and possessing investments and their results can be transferred

to another individuals and legal entities;

- Independence in making decisions on patenting of useful models, “know how”, industrial samples in the territory of the Republic of Uzbekistan;

- Independence and free in possessing the results(profit) of investment activity;

- Attracting investments into Republic of Uzbekistan in the form of loan and

other borrowing recourses;

- Using official exchange rate in national currency market;

- Acquisition of rights on land according to the terms of legislation;

- Using the property as a collateral of borrowing funds;

- Gaining fees if requisition of own investments and other assets;

- Covering the expenditures as a result of activities (non-activities) of public

administration bodies, local governments, officials.

According to the law of the Republic of Uzbekistan foreign investors have

the following obligations:

- Adhering to legislation of the Republic of Uzbekistan;

- Paying taxes and other mandatory payments according to the legislation;

- Meeting the terms and conditions of the investment agreements;

- Receiving expertise results related to sanitarian, hygienic, environmental and

other requirements;

- Avoiding directly or indirectly illegal affects in order to get the additional

privileges and incentives rather than other competitors.
3).

Defining The 3 Types Of Investments:

1. Ownership Investments

Ownership is what comes to mind for most people when the word investment is batted around. These are the most volatile and profitable class of investment. The following are examples.

Stocks

Owning stock means owning a portion of a company. It may be a miniscule stake, but it's ownership.

More broadly speaking, all traded securities, from futures to currency swaps, are ownership investments. Investors purchase them in order to share in the profits, or because they will increase in value, or both.

Some of these investments, such as stocks, come with the right to a portion of the company's value. Others, such as futures contracts, come with the right to carry out a certain action that will benefit their owners.

Your expectation of profit is realized (or not) by how the market values the asset you own the rights to. If you own shares in Apple (AAPL) and the company posts a record profit, other investors are going to want Apple shares too. Their demand for shares drives up the price, increasing your profit if you choose to sell the shares.

Business

The money put into starting and running a business is an investment.

Entrepreneurship is one of the toughest investments to make because it requires more than just money. Consequently, it is an ownership investment with extremely large potential returns.

By creating a product or service and selling it to people who want it, entrepreneurs can make huge personal fortunes. Bill Gates, founder of Microsoft and one of the world's richest men, is a prime example.

Real Estate

Houses and apartments that are purchased to rent out or to resell are investments.

The house you live in is a different matter because it is filling a basic need. It fills a need for shelter. It may appreciate in value over time, but it shouldn't be purchased with the expectation of profit. The mortgage meltdown of 2008 and the underwater mortgages it produced are a good illustration of the danger of considering a primary residence as an investment.

2. Lending Investments

Lending money is a category of investing. The risks generally are lower than for many investments and, consequently, the rewards are relatively modest.

A bond issued by a company or a government will pay a set amount of interest over a set period of time. The only real risk is that the company or government will go bankrupt, in which case the bondholder may get little or none of the investment back.

Savings Accounts

A regular savings account is an investment. The investor is essentially lending money to the bank. The bank will pay interest to the account holder and will earn its profit by loaning out the rest of the money to businesses at a higher rate of interest.

The return on savings accounts is currently quite low, but the risk is essentially zero. In the U.S., savings accounts are fully insured up to $250,000 by the Federal Deposit Insurance Corporation (FDIC).

Bonds

Bond is a catch-all category for a wide variety of investments from U.S. Treasuries and international debt issues to corporate junk bonds and credit default swaps(CDS).

The risks and returns vary widely between the different types of bonds. Overall, these types of lending investments pose a lower risk and provide a lower return than ownership investments.

3. Cash Equivalents

These are investments are "as good as cash," which means that they can be converted back to cash easily and quickly.

Money Market Funds

Money market funds are similar to savings accounts and can be purchased at any bank. The difference is that the investor commits to leaving the money alone for a period of time in return for a slightly higher rate of interest. The time period is as little as three months and no longer than a year.

Money market funds are more liquid than other investments, meaning you can write checks out of money market accounts just as you would with a checking account. Although, once you start writing checks on it you've erased much of its value as an investment.

Direct vs. Indirect Foreign Investments

Foreign investments can be classified in one of two ways: direct and indirect. Foreign direct investments (FDIs) are the physical investments and purchases made by a company in a foreign country, typically by opening plants and buying buildings, machines, factories, and other equipment in the foreign country. These types of investments find a far greater deal of favor, as they are generally considered long-term investments and help bolster the foreign country’s economy.

Foreign indirect investments involve corporations, financial institutions, and private investors buying stakes or positions in foreign companies that trade on a foreign stock exchange. In general, this form of foreign investment is less favorable, as the domestic company can easily sell off their investment very quickly, sometimes within days of the purchase. This type of investment is also sometimes referred to as a foreign portfolio investment (FPI). Indirect investments include not only equity instruments such as stocks, but also debt instruments such as bonds.