Land for an industrial park in Ukraine: what kind of land can be used?

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The creation of an Industrial Park always begins with the selection of a land plot. And this is really one of the most complicated issues because the legislation imposes a number of mandatory requirements that must be taken into account when selecting a land plot.

This is the first stage, which in the future will allow you to develop a park concept and pass a strict inspection. In this article, we will use our experience to help those initiating the creation of a park to understand the key points.

Requirements for an industrial park land plot in Ukraine

When considering a land plot, you should always pay attention to its area. It should not be less than 10 hectares. If your land area exceeds 1000 hectares, we advise you to reduce or divide it into several parks, and choose a different concept for each, taking into account all the peculiarities of the location.

In addition, the land must be suitable for industrial use and belong to the industrial land. Of course, the intended use of the land can be changed and transferred to industrial land, but one must take into account that this requires a lot of time to develop, coordinate, and approve the relevant documents and requires additional financial resources.

The procedure for changing the designated purpose may be initiated and the Industrial Park may be continued, but this significantly reduces the chances of attracting investors and participants, because few are interested in investing in risky projects.

You may also like: Industrial Park - Where to Start?

Why is infrastructure important for creating an industrial park?

Please note that the Industrial Park is an area for economic activity, production, and processing, so you need to consider the availability of appropriate energy, water, and other resources. Otherwise, it will be necessary to develop separate project documentation, appropriate approvals, and conclude additional agreements. It is also necessary to take into account the time needed to document and implement the projects.

Also, there should be existing connection systems, roads, highways, etc.

Note that the park area must be integral and cannot be subdivided. Exceptions can be a road, gas pipeline, power lines, etc.

Please note! A land plot must be registered in the State Land Cadastre and have a cadastral number. Our lawyers will help you to draw up the appropriate documents for listing a land plot in the Cadastre.

The title to a land plot may belong to one or several persons. You can also draw up a lease agreement. In such a case the land will be transferred to participants under a sublease agreement.

Also, the owner of the land may be both an individual and a legal entity, government, and local authorities on state and municipal land. The peculiarity of the lease agreement is that you need the consent of the landlord for the creation of the Industrial Park and coordination of the concept.

Our company's specialists will assist in drafting a lease agreement taking into account all requirements.

From practice it may be noted that the best option is to keep the land in communal ownership, as local authorities are more interested in the development of their territories, increasing jobs, attracting investors, etc.

What land-related problems do IP participants face in practice?

Our lawyers repeatedly had to deal with construction objects on the land plot selected for the creation of an Industrial Park. The law prescribes a list of such objects, and everything is clear: offices, educational institutions, laboratories, fire stations, production, storage, and other buildings not prohibited by law.

The main question is about unfinished buildings - what to do with them, how to register them, and whether they can be demolished. Based on our experience, we will work out the best option for you, because it is impossible to answer these questions unambiguously. Each situation should be considered and studied individually to avoid negative consequences in the future.

The company's specialists study and monitor not only the changes in legislation on Industrial Parks but also closely follow the practice. Therefore, assisting at each stage, we prepare the necessary documents, coordinate the actions and pay great attention to the prevention of problematic moments that may await you after taking a particular decision.

We will analyze all points, study documents and develop a strategy for the arrangement and creation of your Industrial Park, paying attention to compliance with the sanitary and epidemiological, and environmental requirements.

Also, our lawyers will help you develop a concept of an Industrial Park, prepare and submit a package of documents for inclusion in the Register of Industrial Parks.

The cost of starting an IP in Ukraine can be found here.

Publication date: 05/10/2022

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