Management company for an industrial park in Ukraine: requirements and documents

Most often the initiator of creating an industrial park in Ukraine are local authorities, which are interested in stimulating investment activity on their territory.

Investors are attracted by the fact that some subjects (state or local authorities) assume a part of their business expenses free of charge.

If a private company is responsible for the arrangement and maintenance of an industrial park, it will pass all of its costs onto the park's members, as a result of which the park may sometimes lose its investment attractiveness.

The management company itself profits in any case - first and foremost, it obtains income by providing industrial park participants with the use of:

• land and production areas;
• equipment;
• services related to business operations.

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What is an industrial park management company and what are the conditions for its creation?

A management company is essentially a development company that develops and manages an industrial park. Such a company can serve several parks. This requires knowledge, experience, a team, funds, and, most importantly, an understanding of how to do it.

The management company must meet the following conditions:

• it must be a legal entity, regardless of its organizational and legal form;
• the company must be registered in accordance with the legislation of Ukraine;
• the founders cannot be citizens of the state recognized by the Verkhovna Rada of Ukraine as the aggressor state or the occupant state,
• owners of 10 percent or more of the shares (stakes) of a legal entity or the ultimate beneficial owner (controller) of which is not a resident of the aggressor state
• the company shall not have any economic ties with the aggressor state.

The peculiarities of choosing a management company depending on the type of land ownership. Namely:

• state or communal lands - necessarily by means of a tender;
• privately owned land - by the initiator of creation at his discretion;
• leased land plots - by the initiator, but there is one condition. Within three business days, it is necessary to inform the lessor (as a rule, this is a local community which leased its land), and the relevant state authority, the local government body.

For park participants, management companies minimize the consumption of material, financial, labor and time resources. They may also receive services related to the provision of economic activity.

To promote the development of Industrial Parks on the territory of their community, local authorities can provide tax benefits, such as land tax and real estate tax, or generally exempt from paying such taxes by their decision.

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Terms and conditions of a tender for the selection of the a management company

First, the conditions of the competition, the competition committee and its work procedure, and the size and order of payment of the registration fee are approved, and only after that, the announcement about the competition is published in the media. The announcement can also be posted on the PROZORRO website.

It is mandatory to confirm the receipt of applications and provide applicants with the necessary information, including a justification of why they are not allowed to participate in the competition.

Upon consideration of all bids, they determine a winner and sign the contract with it. Only after that, the winner of the tender acquires the status of a management company.

Please note! Information provided by bidders is confidential. It cannot be disclosed to other participants or third parties.

Note the need to comply with established deadlines, namely:

• submission of applications - 30 days;
• review of applications - 30 days;
• determination of the winner - 10 days;
• announcement of the winner - 5 days;
• conclusion of the contract - 10 business days from the date of determining the winner.

It should also be understood that the implementation of an industrial park includes more stages of the construction project, which the management company will help to implement. These are:

• work with the land;
• design;
• financing and/or investment;
• construction;
• brokerage (attracting residents) and promotion;
• management of the finished project (technical, administrative management, security, cleaning, etc.).

Our lawyers will help you deal with all the issues that may arise in the search or registration of your management company.

We will help you to properly arrange and conduct a tender, and conclude an agreement, as well as draw up documents professionally and in compliance with all the deadlines.

The cost of creating an industrial park can be found here.