House Bill 8-72-5 which is almost the same version President Johnson Toribiong introduced last year has been transmitted to the Senate for action.
The measure also calls for the abolition of any existing law pertaining to foreign investment.
According to the measure, a non-citizen who has business interest are required to submit an application for the issuance of Palau Foreign Investment (PFI) charter within 90 days.
Administrative responsibilities then will be placed with the Registrar of Corporation and a minimum investment of $250,000 is required.
The measure stated that the investment may either be paid in cash or actual value of tangible assets.
The measure also requires foreign corporations, to maintain a work force of which no less than 20 percent of such employees will be Palauan citizens.
Business activities reserved exclusively for Palauans are retail sale of goods; all land transportation including bus services, taxi services and car rentals; handicraft and gift shops located at the premises of hotels or at the Palau International Airport; bakeries; tour guides, fishing guides and other form of water transportation activities and travel and tour guides.
Under the bill the Registrar will be responsible for monitoring and supervising PFI Corporation and subject to the approval of the president, the registrar may promulgate rules and regulations to carry out its duties.
The foreign investment bill measure meanwhile introduced in the Senate calls for the creation of a Foreign Investment Authority (FIA) which function is to advise and assist the President in the promotion and encouragement of foreign investment in Palau and to act as a liaison between Palau government agencies and private business in the promotion foreign investment in Palau.
