Frequently Asked Questions
How to become a resident?
HTML:Just in five steps:
- Register on the territory of the Novgorod municipal district.
- Prepare a presentation of an investment project and get it approved at the supervisory board
- Prepare a passport of an investment project, financial model and application documents for passing the expert council.
- To sign an agreement on the conduct of industrial and production activities
- Invest to its own production not less than 120 mln. rub
What documents are needed?
HTML:
- Application for the conclusion of an Agreement on the conduct of industrial and production activities.
- Extract from the Unified State Register of Legal Entities (EGRUL)
- A copy of an entry sheet of the Unified State Register of Legal Entities (EGRUL)
- A copy of the certificate of registration with the tax authority
- A copy of constituent documents (articles of association, decisions on the establishment of a company and the appointment of a general director)
- A certificate of fulfillment of the obligation to pay taxes, fees, insurance premiums, penalties, fines, and interest payable in accordance with the legislation of the Russian Federation on taxes and fees.
- The investment project passport and financial model, prepared in accordance with the formats specified by Order No. 189 of the Ministry of Economic Development, dated April 1, 2024
- Documents confirming the availability of own funds, and (or) funds of founders (participants), and (or) funds of co-investors (confirmation letter, account statement) for the implementation of the investment project, and (or) documentary confirmation from the credit institution (approval of the conclusion of a loan agreement) of readiness to provide financing for implementation of an investment project.
- Documents detailing potential options for supporting the investment project with essential resources and market access, specifically: Infrastructure requirements Raw material sourcing Equipment procurement Sales channels and target markets These documents and materials should include: A comprehensive analysis of potential sales channels and target markets An evaluation of equipment supply options necessary for project implementation Any preliminary contracts or agreements related to: Raw material supply Equipment procurement Sale of finished products or services
What are the requirements for a project?
HTML:Project requirements (Approved by Decree of the Government of the Russian Federation dated 14 February, 2024 No. 156):
- The investment project shall comply with the objectives of creating special economic zones defined in Article 3 of Federal Law No. 116 "On Special Economic Zones in the Russian Federation".
- The sources of financing of the investment project must be determined and a potential resident of the special economic zone must provide in writing confirmation of readiness to implement the declared investment project with attachment of documents confirming: the availability of own funds, and (or) funds of the founders (participants), and (or) funds of co-investors for implementation of an investment project and (or) documentary confirmation by a credit institution of its readiness to provide financing for implementation of an investment project; Exploration of viable strategies to equip the investment project with essential resources, including infrastructure, raw materials, and equipment, as well as identifying potential markets and distribution channels for the resulting products or services.
- For potential residents of a special economic zone, the minimum investment threshold, including capital expenditures (excluding VAT), must be at least 120 million rubles when undertaking industrial and manufacturing activities. This investment commitment should be formally declared as part of the proposed investment project.
- Within the first three years of implementing an investment project, a resident of the special economic zone is required to make at least two-thirds of the total investment. This total investment includes capital expenditures and must be performed as part of the approved investment project framework.
- The investment project's discounted payback period, considering the special conditions for entrepreneurial activities in the special economic zone, must not exceed 15 years.
What incentives does Novgorodskaya SEZ provide?
HTML:Residents of the Novgorodskaya Special Economic Zone enjoy significant tax and customs benefits. The income tax rates for these residents are structured as follows:
For the first 7 years after establishing a tax base: 2%
From the 8th to the 9th year: 5%
From the 10th to the 11th year: 12%
From the 12th year until 2070: 15.5%
Additionally, SEZ residents receive the following tax exemptions:
Land tax: 0% for the first 5 years from the date of establishing the tax base
Transport and property taxes: 0% for the first 10 years from the date of establishing the tax base
The Novgorodskaya Special Economic Zone operates under a free customs zone regime. This arrangement offers significant financial benefits to its residents. Specifically, all equipment imported into the SEZ is exempt from customs duties and Value Added Tax. This customs-free status applies exclusively to businesses officially registered as residents of the Novgorodskaya SEZ.
For the first 7 years after establishing a tax base: 2%
From the 8th to the 9th year: 5%
From the 10th to the 11th year: 12%
From the 12th year until 2070: 15.5%
Additionally, SEZ residents receive the following tax exemptions:
Land tax: 0% for the first 5 years from the date of establishing the tax base
Transport and property taxes: 0% for the first 10 years from the date of establishing the tax base
The Novgorodskaya Special Economic Zone operates under a free customs zone regime. This arrangement offers significant financial benefits to its residents. Specifically, all equipment imported into the SEZ is exempt from customs duties and Value Added Tax. This customs-free status applies exclusively to businesses officially registered as residents of the Novgorodskaya SEZ.
What is a free customs zone regime?
HTML:The Free Customs Zone regime, also known as "Import 78," is a customs procedure for both domestic and imported goods. This procedure applies only to items placed and used within the Special Economic Zone (SEZ) territory. Goods under the Free Customs Zone procedure are completely exempt from all customs fees and other charges, including duties and taxes. Any international business participant can use this procedure if they meet two conditions: first, they must have confirmed SEZ resident status; second, they must have signed an agreement with the management company to conduct industrial and production activities within the zone.
What is customs procedure of commodity output for an internal customer?
HTML:The "Release of goods for domestic consumption" or "Import 40" (IM-40) procedure is a legally mandated customs process for registering imported goods intended for use and sale within Russia and other Eurasian Economic Union (EAEU) countries. This procedure specifically applies to products manufactured outside Russia and EAEU member states. During this customs clearance, the declarant is required to pay legally established customs fees, including import duties and taxes.
What ready-for-use production premises the SEZ can provide?
HTML:The Novgorodskaya SEZ offers a range of production-ready facilities designed for rapid operational deployment. Each production complex houses ten modules: five measuring 5,200 sqm and five at 2,300 sqm. These modules come in two standard dimensions: 108m x 48m and 48m x 48m. To accommodate larger operations, these modules can be combined as needed. In 2025, a new production facility will be constructed, featuring modules of 3,500 sqm and 7,500 sqm. These modules will have dimensions of 156mx48m and 72mx48m, respectively. Novgorodskaya Special Economic Zone serves as a full-cycle infrastructure partner, delivering top-tier construction, engineering, social infrastructure, and workforce solutions. The SEZ specializes in turnkey construction of production facilities, managing every phase from initial design to final commissioning.
What is the rental cost for a parcel of land intended for a production facility?
HTML:The annual rent for a land parcel cannot exceed 2% of its cadastral value. This regulation is established by Order No. 190 of the Ministry of Economic Development of the Russian Federation, issued on July 14, 2006.
How the purchase price of a land parcel is calculated?
HTML:The purchase price of a land parcel cannot exceed 20% of its cadastral value. (Order of the Government of the Novgorodskaya oblast No. 479 dated 12 April, 2015)
What is the cost of utility connection?
HTML:Novgorodskaya SEZ performs utility connections free of charge.