What are the legal foundations for international investments?
August 15, 2022 | 50,00 EUR | answered by Albrecht Zellmann
Dear lawyer,
My name is Daniel Fröhlich and I am currently dealing with the topic of international investments. I plan to invest money in foreign companies or projects in the near future and therefore would like to understand the legal basics for such investments more precisely.
My background is that I have only invested in my home country Germany so far and now I want to take the step abroad to diversify my portfolio and take advantage of new opportunities. However, I am unsure which laws and regulations I must consider to legally secure my investments and minimize potential risks.
Currently, I have some potential investment targets in mind, but I am not sure how to proceed legally. I am concerned that without sufficient knowledge of the legal basics for international investments, I may make mistakes or jeopardize my capital.
Therefore, my question to you: Can you explain to me the legal basics for international investments and show me possible solutions on how I can make my investments safely and successfully? I would be very grateful for your professional advice on this matter.
Sincerely,
Daniel Fröhlich
Dear Mr. Fröhlich,
Thank you for your inquiry regarding the legal framework for international investments. It is understandable that you may feel unsure before making your first investment abroad and want to minimize potential risks. I am happy to explain to you the key legal aspects that you should consider for your international investments.
First and foremost, it is important to understand that international investments are usually governed by bilateral and multilateral agreements. These agreements can take place at various levels, such as between states, within trade blocs, or in international organizations. It is important to be informed about the specific agreements between your home country and the country where you plan to invest in order to be aware of any restrictions or incentives for investments.
Furthermore, you should research the legal framework of the target country. Each country has its own laws and regulations regarding foreign investments that you need to comply with. This includes aspects such as establishing a company in the target country, complying with tax regulations, labor law, environmental law, and other relevant laws.
It is advisable to seek legal advice before making an investment abroad to identify potential risks and take appropriate measures. An experienced international law attorney can assist you in reviewing contracts, assessing legal risks, and developing an effective investment strategy.
Additionally, you should familiarize yourself with possible dispute resolution mechanisms in case legal conflicts arise. International investments can often lead to disputes that need to be resolved before international arbitration courts or other dispute resolution mechanisms.
Overall, it is important to thoroughly research the legal foundations for international investments and seek professional advice to ensure that your investments are made safely and successfully. I am available for any further questions you may have and wish you success in your endeavors.
Best regards,
Albrecht Zellmann
Attorney for International Law
