Stimulating investment in pearl farming in ... - World Fish Center

later development, but could come earlier if the scientific, land tenure and commercialfactors affecting viability come together in a favourable way. Any of these forms ofparticipation require clear definitions of oyster sizes and conditions, standards andmethods of caring for the growing oysters, and transfer techniques and valuationmethodology if oysters are to be relocated before harvesting of pearls. A prospectiveinvestor is likely to have relevant experience and preferences that would be critical indeciding the form of local participation in the risks, costs and benefits of any operation.7. The investment approval processThe initial procedure for obtaining the necessary approvals for investment in SI has beenmuch simplified by the Foreign Investment Act, 2005. Previously applications forinvestment approval were considered by a Board, which was often the cause of delays andaccusations of undue influence. Now the initial step in the process only involvesregistration of the proposed investment, before more complex issues are addressed.If a company is to be incorporated in SI to undertake the pearl farming the necessaryapplication and registration processes under the Companies Act should be initiated and thecompany’s name and details given in the application for investment registration.A prospective investor applies under s.15 of the Foreign Investment Act providing thebasic information required by s.16, describing the proposed investment activity and itslocation, if known at that stage. The Registrar checks completeness of the application andacknowledges receipt. Within five days the Registrar must reply approving or refusing theregistration or giving notice that he is taking advice, for which a further five days isallowed. According to ministry staff these time limits are being successfully applied.Pearl farming is not listed as a restricted or prohibited activity, and approval within theinitial five-day time period appears most probable. A certificate of registration would thenbe issued by the Registrar giving details of the approved investment. Detailed changes(business name, address) may be made to the specification at the request of the investor,but if major changes are proposed a new certificate would be required.A certificate may be cancelled by the Registrar if the proposed activity has not startedwithin twelve months of the investor receiving the certificate or if the investor engages ina reserved or prohibited activity or breaks the law relating to investment. If the certificateis cancelled the investment activity must cease.The Act also establishes an Investment Facilitation Committee, to be appointed andoverseen by the Minister. The committee had not been activated at the time of preparingthis brief. The committee is designed as a review board for decisions of the Registrar, andis itself subject to review by the High Court of SI in matters of law.16