Service of legal support of industrial park formation in Ukraine
Service of legal support of industrial park formation in Ukraine
What we do
- Advise the Client on all matters related to the collection and preparation of the documents required for the Industrial Park registration;
- Develop and review the concept of the Industrial Park (hereinafter - the IP), business plan of the management company, design and estimate documentation, etc. for compliance with the legal requirements;
- Prepare a package of documents: application for inclusion of the IP in the Register of Industrial Parks, decision on the IP creation and its concept;
- Submit the prepared documents to the authorized body;
- Provide legal support of the tender organization aimed at selecting the managing company;
- Provide legal support and assistance during the signing of the agreements between the initiator of the IP creation and the managing company, the managing company and the IP members.
WHY CHOOSE US
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Full range of services for the IP creation
We can fully develop the concept of the IP, and include the IP in the relevant Register. We can also help with other issues related to the creation and operation of Industrial Parks in Ukraine. -
Experience in supporting the creation of Industrial Parks
Despite the fact that the concept of Industrial Parks in Ukraine is relatively new and there are not many of them, our specialists already have sufficient competence in this area. We have developed the Concepts of 4 Industrial Parks in Ukraine and helped to register them.
Documents required for the IP registration and inclusion in the relevant Register.
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Certificate from the State Land Cadaster concerning land plot where the industrial park is located
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Decision on the Industrial Park creation
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Concept of the Industrial Park
In addition, the name of the managing company and the members shall be submitted, if available.
The concept must be developed in accordance with certain legal requirements and contain the following information:
- Name of the Industrial Park;
- Name of the party initiating the IP creation;
- Goals and objectives of the Industrial Park;
- Information on the location and size of land plots;
- Period of the IP creation;
- Requirements to members;
- Plan concerning supply of the Industrial Park with all the necessary resources;
- Development plan;
- Amount of resources required for the IP functioning and sources for their obtainment;
- Model of the Industrial Park functioning;
- Expected results of the Industrial Park functioning.
It’s worth noting that the documents shall be filed with the Ministry of Economic Development and Trade of Ukraine not later than 3 days after the decision regarding industrial park creation is made. Such a document shall comply with the concept of the new park.
At this stage the initiating party can sign the agreement with the managing company about creation and functioning of the Industrial Park.REFERENCES FROM OUR CLIENTS
L. Chervonyuk, LLC "Vitalux"
General director I.Logvinenko , Bravo Airways
President Tedeev E.S., Ukrainian wrestling association
Chief ophthalmologist of Ukraine, Oksana Vitovska, All-Ukrainian alliance of ophthalmologists
General Manager Stashkevych I.Y., LLC “Trading company” Rud”
General director Skibinskiy V., Yokogawa Electric Ukraine Ltd.
Partner, Denis Y. Lysenko, Vasil Kisil & Partners
Important to know
When including the IP in the Register, it should be rem0.embered that there shall be no industrial asset complex on the land plot, including workshops and other premises that are suitable for manufacturing of products. In case of presence of such industrial complexes, it will be impossible to include the IP in the Register. Therefore, in the future you will be unable to receive tax benefits from the state.
At the first reading, the Verkhovna Rada of Ukraine adopted a package of bills, which introduce tax and customs investments stimuli for new productions within Industrial Parks.
The bills set temporary fiscal stimuli for the IP residents:
- 5-year full tax exemption on income tax and partial exemption (9%) for subsequent 5 years;
- Exemption from import levy on equipment for the IP development and its business activity;
- Opportunity to get fiscal stimuli in regard to real estate tax, land tax, rent payment for use of land plot of state or communal form of ownership, where the IP is located;
- Installments for 5 years regarding import VAT for the IP development and its business activity.
ANSWERS TO FAQs
Can an IP be created on a leased land plot?
Yes, the creation of an Industrial Park on a leased land plot is allowed by law. But since the IP is created for at least 30 years, the lease shall be long term and the lease agreement shall be certified by a notary. In addition, the concept of the Industrial Park must be coordinated with the landlord.
Can the initiating party, if it is a legal person governed by private law, be a managing company of the IP?
As illogical as it may seem, the initiating part and the managing company shall conclude an agreement on the functioning of the Industrial Park. The company cannot enter into an agreement with itself. Therefore, if the company initiates the creation of the IP, it can no longer become its managing company.
SWIFT OBTAINMENT
AND BEST QUALITY PROVEN BY YEARS OF PRACTICE!
Volodymyr Gurlov, Managing partner
RELEVANT INFORMATION
Conditions and procedure for choosing the managing company and members of the Industrial Park
The choice of such a company is an important step, because it will be responsible for the development of the Industrial Park and organization of its work.The selection procedure depends on the ownership rights to the land plots where the industrial park is located:
- In case of state or municipal land plots, an open bidding is held on the terms and conditions stipulated by the Law of Ukraine “On Industrial Parks”.
- If the land plot is privately owned, the initiating party can freely determine the selection procedure itself.
- Be a registered business entity;
- A place of business entity registration has to coincide with the administrative unit (city, town, village) where the IP is located;
- Be of any form of business ownership.
- by signing agreement with the managing company;
- by purchasing property of the Industrial Park or share of land plot of the IP.
Characteristics of the agreement on the IP creation and functioning, as well as the agreement for the conducting of business activity within the sphere of the IP.
The agreement on the IP creation and functioning shall be signed by two parties – an initiating party and a managing company. There is a standard form of the agreement approved by the authorized state body.The key terms and conditions include:
- Subject of the agreement;
- Period of the agreement;
- Information on land plots;
- Procedure and conditions for managing company’s activities on the territory of the Industrial Park (use of engineering and transport infrastructure, land plot);
- Procedure and conditions of involvement of the Industrial Park members;
- Procedure for reporting to the initiating party.
The agreement on the conducting of business activity shall be signed by two parties – a managing company and a business entity (a future member of the Industrial Park). There is no standard form of the agreement, but there are key terms and conditions of such agreement stipulated by the law of Ukraine “On Industrial Parks”, which include:
- Types of activity;
- Preferences for Ukrainian employees;
- Period of the agreement;
- Procedure for improvement of engineer and transport infrastructure;
- Rights and obligations of the parties;
- Liability of the parties;
- Dispute resolution procedure;
- Financial matters and investment obligations of the future member;
- Extension and termination of the agreement.