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Golden Visa Hungary: The new programme
13.03.2024Under the new immigration act adopted in December 2023, Hungary is providing a guest investor visa allowing a 2-year period of residence in Hungary. Holders are entitled to stays of more than 90 days and multiple entries within 180 days. The Ecovis experts explain which rules apply to the Golden Visa in Hungary.
The Hungarian Golden Visa requires at least one of the following investments:
- at least EUR 250,000 in a real estate investment fund
- at least EUR 500,000 in the acquisition of a residential property in Hungary
- at least EUR 1,000,000 in non-refundable public trust donation
These amounts do not include the fees and costs of the procedures for obtaining the visa.
According to the law, a foreign national can obtain a guest investor visa if:
- Their investments mean that entry and residence is in the national economic interest
- They have a valid travel document
- They have a permit for return or onward travel
- They can provide proof of the purpose of their entry and residence
- They have sufficient means of subsistence and are able to cover the costs of departure
- They have health insurance to cover any medical expenses,
- They are not subject to expulsion orders or entry and residence bans and do not constitute a threat to public policy, public security, national security or public health in Hungary
- They are not subject to a Schengen Information System alert
- They hold or intend to hold at least one of the relevant investments
- They can certify the lawful possession of the amount corresponding to the required investment
- They provide a written undertaking to make the expected investment within three months of entry
Additional restrictions on the Golden Visa
A prohibition of alienation and encumbrance must be registered on the residential property purchased for a period of 5 years. The residential property must be owned exclusively by the visa holder or a family member for 5 years.
Provided that they meet the additional requirements, holders of a guest investor visa can apply for a 10-year guest investor residence permit as a next step.
For further information please contact:
György Zalavári, LL.M attorney at law, ECOVIS Hungary Legal, Budapest, Hungary
Email: gyorgy.zalavari@ecovis.hu
Company Law in China: Navigating the Key Changes
13.03.2024China recently updated its company legislation, with changes set to take effect from July 2024. Shanghai K-insight Law Firm outline the key amendments, which aim to enhance operational efficiency and safeguard the interests of companies, shareholders and creditors.
Company Law in China (the “2018 Company Law”) was amended on October 26, 2018. This amendment was then adopted on December 20, 2023, and will take effect in July 2024 (the “2024 Company Law”). There are some key changes impacting how limited liability companies operate:
1. Registered Capital
1.1 Term of Capital Contribution
According to the 2018 Company Law in China, a shareholder must pay – in full and on time – the amount of capital he or she has subscribed, as set out in the company’s articles of association. The term of the capital contribution can be as long as 20 to 30 years.
Under the 2024 Company Law, the registered capital of a limited liability company must be fully paid up within 5 years of the company’s establishment.
1.2 New Forms of Capital Contribution
The 2024 Company Law has added that equity and creditor’s rights, as well as other non-monetary assets, can be contributed at an agreed value.
2. Corporate Governance
2.1 Legal Representative
Under the 2018 Company Law in China, the legal representative of the company is the chairman of the Board of Directors, the sole executive director if there is no Board of Directors, or general manager as stipulated in the company’s articles of association.
The 2024 Company Law has widened the pool of candidates for the position of legal representative so that any director who handles company affairs on behalf of the company or the general manager can serve in this position. If the legal representative resigns, a new legal representative shall be appointed within 30 days from the date of the legal representative’s resignation.
2.2 No Mandatory Supervisor
Under the 2024 Company Law, supervisors are no longer mandatory for a limited liability company that is small in size or has a small number of shareholders. A Board of Directors audit committee can also be a substitute for a Board of Supervisors.
3. Shareholders’ Right
3.1 Shareholders’ Right to Know
The 2024 Company Law strengthens the shareholders’ right to information, clearly stipulating that shareholders have the right to access and copy documents such as the company’s articles of association, meeting records, financial statements, etc., and may request to inspect the company’s accounting books and records. At the same time, it specifies the time limit for a response and the grounds on which a company may refuse inspection, and grants shareholders the right to initiate litigation.
3.2 The Forfeiture of Shareholder Rights
Provisions regarding the forfeiture of shareholder rights have been added. If a shareholder fails to make a capital contribution by the date specified in the company’s articles of association, and the company issues a written demand for capital contribution in accordance with the provisions of the preceding paragraph, it may specify a grace period for payment; the grace period shall be no less than 60 days from the date the company issues the demand.
If, at the end of the grace period, the shareholder still fails to fulfil his obligation to make a capital contribution, the company may, upon resolution of the Board of Directors, issue a written notice of forfeiture to the shareholder. From the date on which the notice is issued, the shareholder shall forfeit the equity corresponding to the unpaid capital contribution.
4. Transfer of Equity Interests in a Limited Liability Company
The consent of the non-transferring shareholder(s) is no longer required for the transfer of shares to a non-shareholder. A right of pre-emption applies. The transferring shareholder shall inform other shareholders in writing of the quantity, price, payment method and schedule of the potential equity transfer. Non-transferring shareholders who do not respond within 30 days of receiving the written notice will be deemed to have waived their pre-emptive rights.
The updated Company Law in China will help to improve the operational efficiency of enterprises, protect the interests of companies, shareholders and creditors, and promote sustainable enterprise development.
Taiwan Carbon Emissions: Catching up with Zero Carbon Emission Target
11.03.2024The ambitious goal of achieving zero carbon emissions by 2050, set forth by COP21, has spurred significant global efforts to combat climate change. The team at TAK ASSOCIES explain how Taiwan, a key player in electronics manufacturing, has swiftly adopted measures to curb carbon emissions.
With the COP21 (the 21st Conference of the Parties to the United Nations Framework Convention on Climate Change) setting an ambitious target of zero carbon emissions by 2050, it has been interesting to see how countries located far from Europe will adapt. The challenges are crucial because many countries in Asia are involved in manufacturing products for the whole world, starting with Taiwan. Indeed, the so-called Formosa Island is deeply involved in manufacturing and/or assembly of major components for the electronics industry, starting with semiconductors, with Taiwan Semiconductor Manufacturing Company (TSMC) being the world’s biggest high-precision fabrication plant.
In the European Union (EU), the European Climate Law of July 29th 2021 set the goals very clearly, introducing the carbon tax and, among other measures, the Carbon Border Adjustment Mechanism (CBAM) to make EU importers pay for emissions raised outside of the EU between 2026 and 2034.
In response, Taiwan authorities, in order to satisfy their cutting-edge industry, published the Climate Change Response Act on February 15th 2023, establishing:
- targets for lower carbon emissions;
- carbon fees (which are technically different from carbon taxes, as the beneficiary is not the Ministry of Finance but the environment authorities;
- its own CBAM, which applies to products imported into Taiwan (mostly from surrounding countries in Asia);
- a trading place for carbon allowance certificates (just like the EU’s Emission Trade System or ETS); and
- mutual recognition with foreign ETS, so that companies can offset their own certificates already purchased (just like a double taxation treaty would allow).
The Taiwanese system will be detailed in 2024 and will be effective in 2025, the year in which carbon fees will start being levied locally. Today, top tier companies in Taiwan are already ready to address the carbon tax system in the world (EU and soon, probably, the USA), with very professional carbon footprint reports that are likely to be used by their global clients. The second-tier companies are currently being trained through various sessions organized since 2023, and it should be no issue for them to reach the level of awareness and compliance.
It will be very interesting to see what other countries in Asia are currently doing to address this trend, especially those who are the biggest polluters. Taiwan has already signed some agreements with other Asian countries to allow mutual recognition of carbon tax certificates.
Still, there are discrepancies to be considered. While the price of the carbon tax in Europe is closer to €100 per tonne, the price of the carbon fee in Taiwan is expected to be closer to €10. Adjustments may be needed to ensure harmonization for global players who need to ensure visibility of their costs when selling throughout the world.
Although many details remain to be seen, one can see that the trend towards zero carbon emissions is developing very rapidly, and there is no reason why most modern countries should not move forward quickly on this issue, as the COP21 has shown the direction, and this direction is now inevitable.