Service of legal support of industrial park formation in Ukraine

Conditions and requirements for the registration of an industrial park in Ukraine

An industrial park may be included in the corresponding Register, provided that at the time of inclusion there are no:

• industrial facilities that were built and commissioned within the last 10 years before the decision to create the park was made;

• production facilities that have been in operation for the last five years prior to that moment (with the exception of some facilities defined by law).

Initiators of the creation of an industrial park, as well as management companies and their members included in the Register of Industrial Parks, are provided with certain state incentives. Legislation in this direction is constantly being finalized, so specific advantages of an industrial park should be considered at the time the decision to create it is made. They may include:

• compensation of the interest rate on loans for development and work within the industrial park;

• non-refundable financial assistance for the construction of the industrial park and infrastructure;

• tax and customs privileges.

Conditions and procedure for selecting a management company for an industrial park. Determining the members of an industrial park.

If the initiator of the creation of the park is a tenant of the land plot, then it independently determines the management company, after which such a company notifies in writing the relevant state authority and local government body as well as the landlord no later than in 3 business days.

The choice of such a company is an important stage, since it is responsible for the development of the industrial park and the organization of its work.

The selection procedure depends on the ownership of the land plots where the industrial park is located:

• If the park is located on the state or communal land, an open tender is held on the conditions provided by the Law of Ukraine “On Industrial Parks”.

• If the land plot is private, the initiator can independently determine the selection procedure.

A member of an industrial park is a business entity, regardless of its form of ownership, which is registered on the territory of this IP (or within it). A member may be a person who has legally obtained the right to a land plot and/or other immovable property within the IP (or part thereof) and has signed an agreement with the management company to carry out economic activities within the park in accordance with its concept.

Such a person shall carry out activities exclusively in the field of processing industry, processing of industrial and/or domestic waste (except for waste disposal), as well as scientific and technical activities, information and telecommunication activities only on the territory of the IP.

A company may acquire the status of a member in the following cases:

• conclusion of an agreement with a management company;

• acquisition of the right of ownership of a certain property or part of the land plot of the IP.

Characteristics of the agreement on the establishment and operation of the IP, as well as the agreement on economic activity within the IP.

The terms of an agreement on the creation and functioning of an industrial park with two parties: the initiator and the management company of the industrial park. There is a model agreement approved by an authorized body.

As for the essential conditions, they include:

• subject;

• period;

• information about the land plots;

• the procedure and conditions for the activities of such a company in the territory of the industrial park (use of engineering and transport infrastructure, land plot);

• the procedure and conditions for attracting members of the industrial park;

• the procedure for reporting to the initiator.

The decision on the establishment, the concept and the business plan of the park are parts of the agreement. After the conclusion of the agreement, the initiator must notify the authorized body within three days of such action and the acquisition of the status of the management company by the legal entity.

The terms of the agreement on carrying out business activities within the IP with two parties: the management company and the company (the future member of the industrial park). There is no standard form of the agreement, but the Law of Ukraine “On Industrial Parks” stipulates essential conditions, namely:

• types of activities;

• preferences for employees-citizens of Ukraine;

• term of validity;

• the order of improvement of engineering and transport infrastructure facilities;

• rights and obligations of the parties;

• liability of the parties;

• the dispute resolution procedure between them;

• financial issues and investment obligations of the future member;

• terms of extension and termination of this agreement.

Legal support for an industrial park in Ukraine

In addition to questions of creating and organizing the work of an industrial park, there is also a need for comprehensive support for its smooth operation.

For example, a management company is obliged to provide the initiator of the park with reports on its operation every six months, which are submitted to the authorized body. The absence of two consecutive reports may lead to the removal of the park from the register.

Our company offers you comprehensive services for further operation of the industrial park, including tax consulting, consultations of specialists in other fields of law, assistance in dispute resolution, etc. 

If you want to register an industrial park in Ukraine simply and safely, don’t hesitate to call us!