Territories of advanced development

What is a Territory of advanced development*?

Territory of advanced development — a part of the territory of a subject of the Russian Federation where a special legal regime for entrepreneurial activities is established.

Within SEZ, there are tax benefits and administrative preferences for its residents.

A resident has the right to receive a land plot from the Management Company for the implementation of his project.

The resident has the right to connect to infrastructure facilities: electricity, water, gas, water disposal and heating.

2 SEZ created on Sakhalin:

- SEZ "Sakhalin"

- SEZ "Kuril Islands"

*For such territories we will use the abbreviation SEZ (Special Economic Zone).

Tax benefits:

1. Income tax at the rate of 0 % for the first 5 years and 18% for the next 5 years.

2. Property tax at the rate of 0 % for the first 5 years and 1.1 % for the next 5 years.

3. Land tax at the rate of 0 % for the first 3 years.

4. Insurance premiums of 7.6% for 10 years

Administrative preferences

1. Provision of a land plot WITHOUT bidding

2. Free customs zone - duty-free import

3. Attraction of foreign labor WITHOUT quotas

4. Investor support in the "one-stop shop" mode

5. Reimbursement of infrastructure costs for residents

Who Can Become a Resident of SEZ?

Requirements for an Applicant Seeking Resident Status:

The legal entity or individual entrepreneur must be registered in SEZ.

The legal entity or individual entrepreneur must not have branches outside the SEZ.

Minimum investment volume of 500,000 RUB.

The legal entity or sole proprietor does not have arrears and taxes and fees

The company must not be undergoing reorganization, liquidation, or bankruptcy proceedings.

The types of business activities must align with those specified in the relevant Russian Government Decrees on the establishment of SEZ.

2. Selection of the Project Location

Determine the location for the project implementation or select land plots/real estate objects that are available (not allocated to residents of the Advanced Development Territory) from the list.

3. Preparation of the Document Package

Main documents:

·         Application

·         Business plan

·         Founding documents

·         Certificate of state registration / Extract from the Unified State Register of Legal Entities (EGRUL)

·         Certificate of tax registration

Additional documents:

·         Financial model of the investment project (justification of the indicators provided in the business plan)

·         Financial statements for the previous three years and breakdown by type of activity (for existing enterprises)

·         Copies of title documents for the land (if available)

4. Submission of the Application

How to become a resident of the Advanced Development Territory (SEZ) or Free Port Vladivostok?

·         Development and packaging of the investment project together with the Management Company (30 days)

·         Preparation of the document package for application submission (7 days)

·         Submission of the application and documents (10 days)

·         Signing the agreement and inclusion in the resident registry