Benefits of Grenada Citizenship Programme: Visa-Free Access to China

Many of our clients are motivated to apply for the Grenada Citizenship by Investment Program because of it provides access to the E-2 Treaty Investor Visa. But that is only part of the picture. There are many benefits to Grenadian citizenship in its own right. This includes no residency requirements, no tax on worldwide income, as well as citizenship of a politically and economically stable country.

In addition to all this, Grenada offers a strong passport, which offers visa free access to a wide range of countries. This includes the UK, the EU Schengen Zone, Hong Kong and Singapore. Grenada is also one of few countries that has visa-free access to the People’s Republic of China.

With shifting geopolitics starting to have an impact on visa requirements, we have found that some clients are taking a fresh look at Grenada. Take the example of one client, an American businessman who spends lots of time in Beijing. He has been motivated to apply for Grenadian Citizenship because he envisages times when it may be difficult for Americans to obtain Chinese visas.

Grenada offers one of the most cost effective citizenship by investment programs in the world. Investment requirements start from $150,000 with real estate investment and public donations available.

Grenada is an E-2 Treaty Country with the United States. The E-2 Treaty allows a person to bring their family to the US for the purposes of investing in and operating a business. Many countries are not eligible for the E-2 Visa so it is necessary to first become a citizen of an E-2 Treaty country like Grenada. Find out if your country has an E-2 Treaty with the USA here.

This article is published for clients, friends and other interested visitors for information purposes only. The contents of the article do not constitute legal advice and do not necessarily reflect the opinions of Davies & Associates or any of its attorneys, staff or clients.


UK Government Extends Citizenship offer to Hong Kong Residents

The British government is proposing to offer a pathway to citizenship for around 3 million residents of Hong Kong. The move is a response to China’s introduction of a new national security law in the Special Administrative Region. The UK views this as a breach of the agreement surrounding the handover of the territory in 1997.

“We made clear that if China continued down this path we would introduce a new route for those with British National Overseas Status to enter the UK, granting them limited leave to remain, with the ability to live and work in the UK, and thereafter to apply for citizenship,” said Prime Minister Boris Johnson of the United Kingdom.

Some three million Hong Kong residents are thought to be eligible for British National Overseas Status. Under current regulations, a British Overseas National is able to move to the United Kingdom for six months.

In response to developments in Hong Kong, the British government is planning to extend that period from six months to five years. UK rules mean a person can apply for citizenship if they can prove they have lived in the United Kingdom for five years.

This is not the first time the United Kingdom has taken such a step. In the 1970s, thousands of Ugandans of Indian descent emigrated to London after they were expelled by Idi Amin. Many Kenyan Indians also migrated to the United Kingdom around this time.

With Hong Kong, the scale could be one-hundred-times larger. While it is estimated that around 30,000 Ugandan Asians emigrated to Britain in the 1970s, around 3,000,000 Hong Kong residents could claim the right to take up the British government’s opportunity.

Just how many people would seek to emigrate is uncertain. The younger generation are likely to be more receptive to the move. Hong Kong remains a major global business hub, despite the febrile situation on the streets.

That said, to be eligible for the British National Overseas Status, a person must have been born prior to the handover in 1997. This means that a person under the age of 23 might not be eligible.

So what are the alternatives? Well, Britain is just one of the options open to Hong Kong residents seeking a way out. The United States, for example, has a range of visas that could be attractive to Hong Kong residents. The EB-5 Immigrant Investor Visa program offers a Green Card in exchange for a $900,000 investment in the US.

Each country is limited to 700 EB-5 visas per year. Fortunately, Hong Kong is eligible for its own quota, separate to China. The EB-5 program in China has been oversubscribed for years, and Chinese face a long waiting list. Please note, the EB-5 program is determined by country of birth.

Alternatively, countries all around the world offer citizenship by investment programs. The two countries with the fastest and most cost-effective programs are Grenada and Turkey. Grenadian citizenship can be obtained in less than two months starting from just $150,000.

Both Turkey and Grenada offer the additional benefit of providing Hong Kong residents with access to the United States E-2 Visa. This non-immigrant visa allows a person to move invest around $100,000 or more to acquire or start-up a business in the United States.

Davies & Associates can help our Hong Kong clients with all the aforementioned visas, including their interest in the United Kingdom. Please contact us to discuss your specific circumstances.

Written by Duncan Hill, Marketing Director, D&A. This article is published for clients, friends and other interested visitors for information purposes only. The contents of the article do not constitute legal advice and do not necessarily reflect the opinions of Davies & Associates or any of its attorneys, staff or clients.


India’s Bankruptcy Code: FAQs

Amid a global economic crisis, Neha Mehta answers some frequently asked questions about filing bankruptcy in India.

Q1. When is a Corporate Debtor in default?

A. “Default” is the non-payment of a whole, or a part, of a Corporate Debt when due and payable. Erosion of net worth is not a default under the Code.

Q2. Can a financial institution proceed against a Corporate Debtor under the Code although it may have already taken action under the Securitization and Reconstruction of Financial Assets and Enforcement of Securities Interest Act, 2002 (SARFAESI)?

A. Section 238 of the Code provides that its provisions shall have effect notwithstanding anything inconsistent in any other law or an instrument under any other law. Further the NCLT, Ahmedabad Bench, in Sarthak Creations Pvt. Ltd. vs Bank of Baroda & Others, held that pendency of proceedings before a Debt Recovery Tribunal (DRT) or invocation of SARFAESI Act, will not bar the commencement of CIRP, in view of the non-obstante provisions of section 238 of the Code.

Q3. What is a COC?

A. The COC (Committee of Creditors) is constituted of a Corporate Debtor’s financial creditors. It is a decision maker in CIRP.

Q4. Can a claim, or proof of claim, be filed, or submitted after the elapse of 14 days from the date of a demand notice?

A. Regulation 12 (2) of the CIRP Regulations provides that a Creditor, who fails to submit a claim with proof within the time stipulated in a public announcement inviting claims, may submit by the 19th day of the Insolvency Commencement Date. This amendment to the CIRP Regulations was made effective from July 2018.

Q5. Are home buyers deemed to ‘Creditors’ under the Code?

A. Section 5(8)(f) of the Code was brought into effect from 6th June, 2018 to provide that an amount raised from a real estate allottee is deemed to be a ‘borrowing’. The logic behind such amendment is that home buyers/allottees advance monies to buyers/allottees advance monies to developers, thereby financing a real estate project, and thus they will fall within the definition of a ‘Financial Creditor’ under the Code.

Q6. Would a moratorium ordered against a Corporate Debtor under the Code affect pending proceedings under section 138 of the Negotiable Instrument Act 1881 (NI Act)?

A. Section 138 of the NI Act is a penal provision empowering the competent court to order imprisonment or a fine. A fine is not a money claim or recovery against a Corporate Debtor, and an order of imprisonment against Directors of a Corporate Debtor does not affect CIRP. Therefore, proceedings under 138 of NI Act therefore will not be affected by a moratorium. Further, no criminal proceeding lie under Section 14 of the Code.

Q7. Does the Code provide for punishment against a Corporate Debtor that commits fraud?

A. Under Section 68 of the Code, if any officer of a Corporate Debtor wilfully conceals its property, he or she would be punishable with imprisonment for 3 to 5 years and a fine extending from INR 100,000 upto 10,000,000.

Q8. Can a Creditor and Corporate Debtor arrive at an ‘out of Court’ settlement and withdraw CIRP?

A. Yes, but with a 90% of COC members voting in favour of the settlement.

Q9. Can an RP reduce a claim amount if a Financial Creditor has claimed usurious or extortionate interest?

A. An RP can revise a claim admitted under Regulation 14 of the CIRP Regulations, subject to the RP collating information warranting the revision. While empowered to do so, the RP should, ideally, intimate the NCLT of the revision.

Q10. Can interest, overdue charges and related charges in respect of a credit facility be treated a part of a claim?

A. Yes.

Q11. In a liquidation of a Corporate Debtor, how will proceeds from the sale of assets charged to a secured creditor be treated?

A. If a secured creditor has participated in the liquidation process, it would relinquish its security interest to the liquidation estate, and receive proceeds from the sale of assets per the waterfall mechanism in Section 53 of the Code.

Q12. Can aggrieved employees, operational creditors appeal against not settlement of any outstanding claims?

A. Any person who is a party to, and aggrieved by, a resolution plan may appeal to the National Company Law Appellate Tribunal (NCLAT) under Section 61(3)(iii) of the Code. The appeal be within the grounds permitted.

Q13. Within what period from the approval of a resolution plan will a resolution applicant have to pay the resolution amount?

A. A payment schedule has to form part of a resolution plan, and on its approval, it binds all stakeholders. Therefore, the resolution plan will stipulate the period within which payment is to be made, and it will bound by it, upon the plan being approved by the COC and the NCLT.

Q14. What is the status of personal guarantors in a CIRP?

A. Notwithstanding the pendency of CIRP, Financial Creditors may invoke personal guarantees for causing payment of the debts of the Corporate Debtor.

Q15. Where would the CIRP process be initiated, if a Corporate Debtor has, for example, a corporate office in Delhi and its registered office in Mumbai?

A. The CIRP will have to be initiated in the jurisdiction of the Corporate Debtor’s registered office.

Q16. What is the application fee payable for initiating CIRP under the Code?

A. It is INR 2000 if the applicant is an Operational Creditor, and INR 25,000 if it is a Financial Creditor.

Disclaimer: This article is provided for informational purposes only and is not legal advice. For more advice on the topic, please contact the author.