Those who are trying themselves in a new business (or expanding an existing one) are looking for ways to reduce costs. There are quite a few ways to achieve this, we’ll talk about special investment contracts. What are they? For what purpose were they created at all? What kind of contract terms are offered to entrepreneurs?
general information
In 2012, a decision was made by the Russian government that it was necessary to localize production and import substitution. In this case, preference is given to those companies that are already engaged in such activities in the Russian Federation or plan to do it. At the same time, those enterprises that specialized in trade were ignored. To facilitate the passage of these processes, it was decided to create preferential conditions. The result of the relevant legislative activity was special investment contracts.
How does it work?
What is the procedure for concluding a special investment contract? It can only be in the relationship of investors with the Russian Federation (its subject or municipality). At the same time, an individual or legal entity that wants to invest money, guarantees for its part that it will modernize or create the production of certain industrial products in the territory controlled by the Russian Federation. To simplify raising funds, the procedure for concluding a special investment contract was standardized. A typical form of this document is offered to help potential entrepreneurs, which allows you to understand in general terms the possible conditions. Already during the negotiations, the parties can add individual obligations.
Specificity
Special investment contracts are very different from other similar programs. Even state partnerships have significant features. First of all, it should be noted that from the side of the federal, regional or municipal representative offices guarantees of making investments in the form of cash are not provided. Also, the state does not receive a share of ownership. But what then can be attractive contract terms? The fact is that the investor receives privileges in the form of customs and tax benefits. In addition, priority rights are given to him. It is also extremely important that the restrictions introduced, which are already accepted after the conclusion of the contract, do not apply to its object. Of course, it has its own specific features, however, it still works.
Contract details
You can familiarize yourself with the conditions offered by standardized special investment contracts in full on the relevant websites of state bodies. In the article, the main provisions will be laid out in the form of abstracts:
- The maximum term of imprisonment is ten years.
- The amount of invested funds should not be lower than 750 million rubles.
- It is necessary to submit a number of documents, which will describe the planned measures regarding the stimulation of activities in the industrial sphere.
- Separately, you need to create a list of obligations that the investor takes upon himself.
- You also need to provide a project on which it is planned to implement everything.
- Separately, confirmation is required that the required amount will be invested.
- To approve specific benefits, the approximate number of jobs that will be created should be provided.
- Evaluation documents showing how much approximately the investor needs to spend money to acquire, build and deliver everything necessary. If the fate of obsolete or mothballed equipment is negotiated, the costs should be at least 25% of their value.
- Assessment of the cost of construction or reconstruction of industrial buildings in which the activity will be carried out.
- Business plan.
- A document where information on activities aimed at protecting the environment will be painted.
These are the terms of the contract that must be met only in order for it to begin to be considered.
Approval Procedure
Initially submitted documents will be reviewed and preliminary evaluated. After that, they are sent to the interdepartmental commission responsible for special investment contracts. She will carry out a final audit. The commission decision will be sent to the investor. If it is positive, then within ten working days a person or organization can decide whether they agree to the proposed conditions, or send a document to the relevant authorities where the differences will be stated. Upon reaching consensus, each of the parties signs its own part of the document, they exchange it. You can additionally ask the subject with whom you plan to establish relations to approve the procedure for concluding a special investment contract to familiarize yourself with all the details.
Features
Before concluding a special investment contract, it is necessary to make a choice regarding actions. For both creation and modernization ultimately have their own characteristics. To increase the chances of obtaining the most favorable conditions, it is advisable to introduce the best of the available technologies or even to create products that have no analogues in the Russian Federation. Also, the more detailed the document containing information on the funds planned to be invested is painted, the higher the likelihood of a positive result. In addition, an indication of the volume of production and the range of manufactured products may be required. When providing these data and with a positive resolution of the issue, the investor will have to regularly provide reports to judge the effectiveness of the company. The state and its representatives, in turn, undertake not to change the conditions of their activities.
Be careful!
In the standard form, which was previously recommended to be studied, there is a mention not only about the rights and obligations of the parties, but also contains information about possible actions that can be taken in case of violation of the agreements undertaken. So, in such cases, it is usually provided that one of the parties may refuse to fulfill the contract on the basis of a cancellation agreement or through a court. In the realities of the Russian Federation, the most urgent question is what to do if the state believes so. In such cases, you should prepare for the fact that you have to pay reimbursement and fines. Although it is possible to agree that the party representing the state wait and give the investor time to resolve all the problematic issues. Nevertheless, it is the Russian Federation that is interested in the fact that enterprises operate on its territory. But you should not forget that they must comply with the law.
Conclusion
As you can see, special investment contracts are quite attractive tools for the development of industry. The reduction in taxes and customs duties for enterprises that were created in this way is palpable. But, alas, a significant drawback of this tool is that it is designed for significant investments in terms of volume.And really, who now has the extra 750 million rubles in order to engage in industry? Even banks will not give such an amount. Because of this, special investment contracts, although they are of interest due to the preferences that are given to the enterprise, are not available to most ordinary citizens who themselves are thinking about creating their own business in the manufacturing sector. But in vain. Indeed, in this case, one could receive a more significant impetus to economic growth.
