Investment
climate
Frequently asked questions
It should be started by drawing up a business plan or a feasibility study. These documents serve as the basis for identifying the investment effectiveness of the project. The future prospects of the project and its profitability depend on how accurately the analysis has been conducted. At the stage of the feasibility study, you can determine the source of financing: banks, private funds, co-investors, own funds.
At the stage of preliminary analysis of prospects of the project implementation, it is necessary to carefully evaluate the potential sales market and promising trends that will be relevant in a few years, when the enterprise is commissioned.
A poor feasibility study or a poor-quality business plan means risks, costs and a possible denial of the bank to provide credit financing even for a potentially attractive investment project.
Next, go to the section “Investor’s Personal Account” register and submit an application to support the investment project or to select a land plot.
The Investor’s Personal Account is an electronic service for joint work of investors with regional authorities on the implementation of investment projects.
For new projects
If an investor begins the implementation of an investment project in the Nizhny Novgorod Region, he/she can use the Personal Account to:
- Submit an application (the investor can submit an application for the support of the investment project according to the Regulation of Support of Investment Projects)
- Find out the result of consideration of his/her application (to track the status of the filed application and to receive feedback from authorities on the results of its processing)
- Get access to the project (after the application is approved, the project will be taken for support, and additional functions of the Personal Account will become available to the investor)
For supported projects
If the investor is already the initiator of projects supported by the “one-stop shop” principle, he/she will be able to:
- See information about all supported projects
- Learn the contact details of the team members supporting the project
- Monitor the implementation of action plans developed for each type of investment project support
- Ask questions and discuss their solution in a general chat with members of the support team
- Involve the regional head of the relevant branch ministry in solving "unsolvable problems"
- Assess the effectiveness of the support team by each question or problem posed
- Store and retrieve all project documents directly in the Personal Account in a specially created section
The Development Corporation of the Nizhniy Novgorod Region can help the investor in this matter. It will present options for investment sites in accordance with technical specifications of the project.
The investor can also select the site independently – using an interactive map. This is a bilingual map of the region, which displays general information about the region, data on investment sites, infrastructure and existing investment projects by municipalities.
Today, the database of promising investment sites contains about 500 brownfields and greenfields.
The procedure and terms for the registration of rights to a land plot depend on the ownership of the land and the current urban development situation in the territory.
- If the site is privately owned, it is enough for the investor to buy the selected territory from the owner
- If the site is in municipal ownership, the investor must contact the administration of the respective municipality
- If the land plot is owned by the region (or the ownership of this territory is not demarcated), to begin the registration procedure it is necessary to apply to the Council for Land and Property Relations under the Nizhny Novgorod Region Government
Find the list of documents to file and application (with filling instructions) and file the application in electronic form on the website of the Ministry of Property and Land Relations of the Nizhny Novgorod Region. Based on results of consideration of the application, the council makes a decision on the feasibility of implementation a particular investment project on the land plot selected by the investor and determines the procedure for allocating the land: through participation in tenders or without tenders. In addition, an action plan for the provision of a land plot to the investor should be approved with the indication of terms and responsible persons.
According to the law, a plot can be provided by the Council without bidding for placement of social and cultural facilities or the implementation of large-scale investment projects.
According to the Land Code of the Russian Federation, the land is leased to the investor for the period of construction of the facility (3-5 years). After commissioning of the facility, the land plot can be bought out or registered as a long-term leasehold (up to 49 years).
Approaching the design stage, the investor should have a complete understanding of the points of connection to the gas, electricity, water and wastewater networks.
The investor should receive information on the cost of utility networks at the stage of selecting a site, since the connection costs are a rather significant share in the total volume of investments.
The investor (owner or tenant of the land plot) needs to contact the utility company to obtain technical conditions for connecting to the networks and enter into a technological connection agreement. The technical specifications contain information about the scheme and cost of connection, as well as estimated dates for the completion of network laying.
Calculation of the connection costs is made according to the tariffs approved by the Regional Tariff Service
- The technical conditions for connecting to gas pipelines are issued by Gazprom
- Matters related to the water supply and disposal are resolved at the municipal level, and the technical conditions will be issued by local authorities
- Technical conditions for connecting to the power grids depend on the owner of the grid located in the vicinity of the land plot.
Nizhny Novgorod Region Development Corporation has administrative resources and is able to communicate with utility companies. It will assist the investor in the preliminary study of the possibility and estimated cost of connecting to utility networks, and after the investor makes the final choice of the land, it will support the project in cooperation with infrastructure companies.
Foreign citizens who came to the Russian Federation from visa-free countries work with legal entities and individual entrepreneurs according to a patent. This document can be issued if the person indicated the purpose of his/her visit to the country as “employment”. If the employment is based on the patent, the employers do not need to obtain a quota. However, when individuals come to the Russian Federation from countries that required a visa, the quota must be obtained.
Applications for the employment of foreign specialists are accepted with mandatory registration of the employer and generating an order in the automated information complex “Migration Quotas” (it is free for entrepreneurs).
Before making an application, you should settle the matter of reporting to the federal tax service of the Nizhny Novgorod Region, the Fund of Social Insurance of the Russian Federation and submit information on a special assessment of working conditions (or certification of jobs) to the Labor Inspectorate of the Nizhny Novgorod Region.
The applications are accepted by the Department of Labor and Employment of the Nizhny Novgorod Region
(Nizhny Novgorod, , Varvarskaya str., 32, room 723, tel.: +7 (831) 214-01-23 (ext. 380). See full information here.
In the Nizhny Novgorod Region, according to the law No. 180-Z “On State Support of Investment Activities in the Nizhny Novgorod Region”, a project may be assigned the priority status. In this case, the investor can obtain financial or non-financial support.
Financial support includes income and property tax benefits and partial reimbursement of loan interest.
The amount of the income tax benefit depends on the share of revenues received from the implementation of the priority investment project in the Nizhny Novgorod Region in the total amount of revenues from the sale of goods (works, services).
IMPORTANT!
The investor can obtain tax benefits and preferences, if he/she decide to
place the enterprise in one of the three acting TADs in the region’s territory – in Volodarsk, Reshetikha or
Sarov. TAD residents can be exempt from land and property taxes and apply a reduced income tax rate during
10 years (5% during the first 5 years and 10% during the next 5 years).
1. HOW TO BECOME A SEZ RESIDENT?
Who can apply for the status of a SEZ resident?
The resident status can be applied for by individual entrepreneurs and commercial organizations, except for unitary enterprises, registered in accordance with the legislation of the Russian Federation on the territory of the municipality where the SEZ is located (Dzerzhinsk), and planning to implement industrial production, logistics or technical and innovative activities (according to Articles 9, 10 of the Federal law of July 22, 2005 No.116-FZ "On special economic zones in the Russian Federation").
What is the minimum investment volume for a SEZ resident?
The minimum investment volume, including capital investments (excluding VAT), declared for implementation by a SEZ resident must be at least 120 million rubles. At the same time, the SEZ resident must implement at least 2/3 of the total volume of declared investments during the first 3 years from the start of the investment project. For projects with a total investment volume, including capital investments, of over 5 billion rubles, the requirement for the investment volume during the first 3 years does not apply (according to the Decree of the Government of the Russian Federation of February 14, 2024 No. 156 "Requirements for investment projects implemented by residents of special economic zones").
What is the procedure for obtaining the resident status?
The procedure for obtaining resident status includes the following stages (according to Articles 9, 12, 13, 14 of the Federal Law of July 22, 2005 No. 116-FZ "On Special Economic Zones in the Russian Federation"):
- Determination of a site for the implementation of the project jointly with the Management Company.
- Registration of a legal entity on the territory of the urban district. Dzerzhinsk.
- Submission of an application for an agreement on the implementation of activities in the territory of the SEZ with the following documents attached:
- copies of constituent documents, a copy of the decision to establish a company (for legal entities) or a copy of the main document certifying the identity of a citizen of the Russian Federation (for individual entrepreneurs)
- passport and financial model of the investment project in the form established by the Ministry of Economic Development of Russia;
- copy of a document confirming the fact of making an entry in the Unified State Register of Legal Entities or the Unified State Register of Individual Entrepreneurs;
- copy of a certificate of registration with the tax authority;
- certificate of fulfillment of the obligation to pay taxes, fees, insurance premiums, penalties, fines, interest payable in accordance with the legislation of the Russian Federation on taxes and fees.
- Passing the SEZ expert council "Kulibin".
- Conclusion of a tripartite agreement on the implementation of activities on the territory of the SEZ between the Applicant, the Management Company and the Ministry of Economic Development and Investments of the Nizhny Novgorod Region.
- Inclusion of the enterprise in the register of SEZ residents (a commercial organization or individual entrepreneur is recognized as a SEZ resident from the date of making the corresponding entry in the register).
How long does it take to obtain the resident status?
On average, the process of obtaining the resident status takes from 2 to 3 months. The duration of the procedure directly depends on whether the Applicant has all the necessary documents and the complexity of the project.
Can a SEZ resident carry out business activities outside the SEZ territory?
Obtaining the status of a SEZ resident excludes the possibility of opening branches and representative offices of a resident company outside the special economic zone (according to Part 4 of Article 10 of the Federal Law of July 22, 2005 No. 116-FZ "On Special Economic Zones in the Russian Federation").
What types of activities are permitted on the territory of the "Kulibin" SEZ?
The following types of activities are permitted on the territory of the "Kulibin" SEZ (according to Article 10 of the Federal Law of July 22, 2005 No. 116-FZ "On Special Economic Zones in the Russian Federation"):
- industrial and production activities;
- logistics activities;
- technology implementation activities.
The following activities are not permitted on the territory of the "Kulibin" SEZ:
- development of mineral deposits (except for the development of deposits of mineral waters and other natural healing resources);
- production and processing of excisable goods (except for the production of cars, motorcycles, production and processing of ethane, liquefied hydrocarbon gases and liquid steel).
What are the conditions for termination of the SEZ resident status?
Termination of the SEZ resident status occurs in the following cases (according to Article 19 of the Federal Law of July 22, 2005 No. 116-FZ "On Special Economic Zones in the Russian Federation"):
- liquidation or termination of the activities of a legal entity or an individual as an individual entrepreneur;
- early termination of the special economic zone;
- termination of the agreement on the implementation of activities in the SEZ;
- deprivation of the SEZ resident status of a person.
What preferences can a resident of the Kulibin SEZ claim?
A set of federal and regional support measures is provided for residents of the "Kulibin" SEZ. Thus, the reduced rate of income tax for residents of the "Kulibin" SEZ is set for the entire period of its validity – until 2069.
- Income tax (general value for regional and federal rates):
- 2% in the first 5 years (from the tax period in which taxable income was first received);
- 5% in the next 5 years (from the 6th to the 10th year);
- 14.5% subsequently (from the 11th to 2069).
In addition, a 0% rate is set on the territory of the SEZ:
- for property tax in the first 10 years from the month following the month registration of the specified property (in accordance with Article 381 of the Tax Code of the Russian Federation);
- for land tax in the first 5 years from the date of obtaining the right of ownership of the land plot (the rate is established by municipal legislation);
- for transport tax in the first 10 years from the month of recognition as a resident of the SEZ (the rate is established by regional legislation).
What services are provided to residents of the SEZ "Kulibin" by the Management Company?
- Support for investment projects, including when receiving grants, federal and regional subsidies, preferential loan financing, as well as in the process of obtaining land for the implementation of investment projects
- Design and construction services, including comprehensive support for an investment project as a technical customer
- Marketing services (organization of industry events, marketing research, business analytics)
- Auditor services (construction, personnel, marketing, legal audit)
- HR management services (analysis of human resources potential, development of corporate culture, conducting training events)
- Financial services (development of a financial model for an investment project, support in terms of attracting financing)
- Services SEZ Management Company, including operation and maintenance of engineering infrastructure facilities, comprehensive maintenance of the SEZ territory
What are the logistical advantages of the "Kulibin" SEZ?
One of the advantages of the Kulibin SEZ is its favorable geographic location:
- The Nizhny Novgorod Region is located at the intersection of the country's main highways and railways, running from north to south and from west to east.
- Taking into account the surrounding areas, the consumer market of the Nizhny Novgorod Region is one of the largest in Russia. The population within a radius of 500 km is 43 million people (more than 30% of the population of Russia), which exceeds similarfigures for Moscow and St. Petersburg.
- The distance of the SEZ from the center of Nizhny Novgorod (population – 1.2 million people) is less than 40 km, from the center of Dzerzhinsk (population – 215.3 thousand people) – 7.5 km.
- In close proximity to the SEZ (2 km) runs the federal highway M7 "Volga", which connects Moscow with Ufa.
- Also nearby is the freight yard of Russian Railways - a transport and logistics hub that connects the western part of Russia with the eastern. The nearest railway station is Igumnovo (4 km).
- Strigino International Airport (25 km) provides access to almost all countries of the world thanks not only to a convenient system of connections with the international air hub in Moscow, but also to the availability of direct flights on a number of routes. The flight to Moscow takes only 1 hour. The international airport is also approved for receiving large cargo ships, making it one of the major logistics centers.
- Thanks to the river port located in Dzerzhinsk (11 km), it is possible to transport goods by water.
How to acquire rights to a land plot?
In order to obtain rights to a land plot it is necessary to select suitable site for a future production. In order to do this, the investor can apply to " Nizhny Novgorod Region Development Corporation", JSC, which will provide the investor with placement options that fully meet his needs.
The total SEZ "Kulibin" area is 724.7 hectares. There are greenfields and brownfields available for investors. The conclusion of the contract will be accompanied by "Nizhny Novgorod Region Development Corporation" JSC.
How is it possible to attract labor force to the SEZ?
The main sources of labor force for the SEZ resident will be cities of Dzerzhinsk (11 km) and Nizhny Novgorod (40 km), as there is a high human potential and experience in training specialists for industrial production of various specializations and levels.
Universities and professional educational institutions of the Nizhny Novgorod Region and the city of Dzerzhinsk educating specialists for various industries in accordance with contemporary requirements.
Dzerzhinsk is the closest settlement to the SEZ to attract staff. This is the second city in the Nizhny Novgorod Region (after the regional center) in terms of number of inhabitants and industrial importance.
Higher educational institutions of Dzerzhinsk are represented by 1 institute and 2 branches of nonresident universities. Secondary education process beingimplemented in 2 institutions of secondary education.
There is a range of organizations in Dzerzhinsk educating stuff for chemical complex, namely: the Dzerzhinsk branch of NNSTU named after R. E. Alekseeva (DPI NNSTU), Dzerzhinsk Chemical Technical School named after the Red Army, Dzerzhinsk Technical College. All educational programs meet the employers’ requirements.
A number of special basic departments has been set up by the Dzerzhinsk Polytechnic Institute at the chemical enterprises ("GosNII, JSC "Kristall", "NIPOM", JSC). This allows to use the modern material base of enterprises in the educational process, attracting specialists as teachers.
What are the staff centers for the recruiting and training in Dzerzhinsk?
The system of resource centers has been developed to recruit and train staff in the industrial sector, which is the main in the region. 33 centers have been created in the region, implementing more than 15 thousand workers per year for the direct needs of newly opened production facilities. One of these centers is located in the Dzerzhinsk Chemical College named after Red Army. It operates together with the Sverdlov factory and conducts training in "Technology of pyrotechnic compositions and products" and "Chemical technology of organic substances", aimed at provide staff for Dzerzhinsk manufactures. The volume of training and educational programs has been agreed with enterprises.
Educational organizations are open to interact with manufactures, they are ready to implement targeted training of specialists based on investor’ needs.
Is it possible to attract foreign workers to production facilities located in the territory of the "Kulibin" SEZ?
Foreign citizens who arrived in Russia from visa-free countries carry out labor activities for legal entities, including those located in the SEZ, under a patent. Employers will not need to obtain a quota when hiring such foreign workers. This document must be issued only for foreign citizens arriving in the territory of the Russian Federation in a manner requiring a visa.
Applications for attracting foreign workers are accepted subject to mandatory registration of the employer and the formation of an application in the AIC "Migration Quotas" (according to the order of the Ministry of Labor of Russia dated January 23, 2014 No. 27n "On approval of the Rules for determining the need for attracting foreign workers by state authorities of a constituent entity of the Russian Federation"). Access to the information resource is provided through the official website (www.migrakvota.gov.ru).
Before submitting applications to the authorized body, it is necessary to resolve the issue of reporting to the federal tax service body for the Nizhny Novgorod region, the social insurance fund of the Russian Federation and provide the State Labor Inspectorate of the Nizhny Novgorod region with information on the special assessment of working conditions (or certification of workplaces).
