Post on 18-Dec-2015
Incentives for innovationsin
Lodz SpecialEconomic ZoneAnna Kądzielewska – Specialist for Investment Development
September 2013
THE REGION OF LODZ - HUMAN RESOURCES
The Region of Lodz is an excellent academic centre where almost 120 000 students attend 24 higher universities with more than 90% speaking English, 40% German. Apart from the most popular languages, students can choose different languages offered by the universities (Chinesse, Japanese, French, Russian, Arabic).
Annualy, almost 30 000 young and competent people graduate from the universities in Lodz ready to enter the labour market.
The number of students in Lodz allows the city to place 6th in Poland in the ranking among economic faculties, 4th among IT faculties and 6th among technical faculties.
SEZs IN POLAND
A special economic zone (SEZ) is a designated area in which manufacturing or distribution activities can be conducted on preferential terms
The purpose of SEZs is to support regional development
Currently, there are 14 SEZs in Poland, each consisting of several subzones
Total area of all SEZ – 20 000 hectares approx. 16 000 already occupied
SEZ will operate until 2020
Permits to conduct activities in SEZ are issued by the authorities of each SEZ
Minimum investment: EUR 100,000
Possibility of cover the land selected by an investor by SEZ
ABOUT LODZ SEZ
Lodz Special Economic Zoneadministratively separated part of the territory of
Poland, where companies may conduct their business activities on special, preferential terms determined by the Law on SEZ.
Lodz Special Economic Zone one of the most dynamically developing economic
areas in Poland, perfect localisation, tax incentives, rich traditions and full support in investment project implementation.
Productionincluding food processing
RANGE OF ACTIVITIES IN LODZ SEZ
Servicesincluding transport and storage
BPO/ SSC/ IT/ R&Dincluding accountancy and book-keeping, call centre services, technical analyses
BENEFITS a total CIT exemption from (corporate income tax) in the amount calculated as 50% of two-year labour costs of newly hired employees or of investment expenditures
intensity of the aid for SME’s sector: 60-70% - the highest level of State Aid in the European Union
plots of land prepared for investment projects, available at competitive prices
free assistance in dealing with formalities related to the investment project
assistance in finding business partners (HR, consulting, construction, finances) – Partner Program.
POSSIBILITY OFCOVERING AREAWITH SEZ STATUSBased on the Law on SEZit is possible to establish a new SEZ subzone on a land selected by a company for the purpose of a new investment project.
The project has to meet the ministerial criteria in terms of number of new jobs and/or value of an investment.
CONDITIONS FOR ENLARGING THE ZONE
I. Citerion referring to the unemployment rate in a district (poviat):1) in a district (powiat) in which the unemployment rate is equal to or lower than 60% of the national average, the entrepreneur undertakes to create at least 500 new workplaces or to cover qualified investment expenditure in the amount of at least 350 million zlotys; 2) where unemployment is higher than 60% but not higher than the national average - creation of at least 250 new jobs or investing at least 155 million zlotys; 3) where unemployment rate is higher than the national average, but not higher than 130% of the national average -creation of at least 200 new workplaces or investment of at least 138 million zlotys; 4) where unemployment rate is higher than 130% of the national average, but not higher than 160% of the average – creation of at least 170 new workplaces or investment of at least 120 million zlotys; 5) where unemployment rate is higher than 160% of the national average, but not higher than 200% of the average – creation of at least 150 new workplaces or invests at least 100 million zlotys; 6) in a district (powiat) in which the unemployment rate is higher than 200% of the national average, but not higher than 250% - creation of at least 100 new workplaces or investment of at least 70 million zlotys;
PREFERENTIAL CONDITIONS FOR ENLARGING THE ZONE
II. Criterion referring to innovation
1)activity carried out as a result of the investment shall consist in implementation of new products manufacturing or manufacturing of significantly improved goods not manufactured on the Polish market or rendering services having such features and not being offered within the region or new technological solutions which have not been used so far or have been used on the Polish market for the period no longer than one year; fulfillment of the criterion shall be confirmed by the opinions of at least two scientific entities within the meaning of Article 2 item 9 of the Act of 8 October 2004 on principles of financing science (Journal of Laws of 2008, No. 169, item 1049), and
2) at least 30 new workplaces shall be created in connection with the investment and qualified investment costs in the value of at least 20 million zlotys shall be incurred.
CONDITIONS
A new investment project of minimium value EUR 100.000,
The investment and business activity has to be maintained for a period of minimum 5 years (3 years for SMEs*),
Creation of new jobs and maintaining employment level for a period of minimum 5 years (3 years for SMEs*),
Maintenance of the assets for which the investment costs were incurred for a minimum period of at least 5 years after they had been put into the fixed assets evidence (3 years – SMEs*)
* According to EU definition SMEs are companies that employ up to 50-250 workers and their yearly turnover does not exceed EUR 10-50M
POST-INVESTMENT CARE
Lodz SEZ is in constant contact with companies during the whole process of implementing investment project:
cooperation with local authorities; support in contacts and negotiations with infrastructure companies (gas electricity power, etc. suppliers); organization of free trainings and conferences; annual meetings integrating entrepreneurs; promotion of companies; support in contacts with the Ministry of Economy.
LODZ SEZ - RESULTS
New workplaces
Investment expendituresin billion EUR *
1475618983 20844 23248 24450 25925
0
5000
10000
15000
20000
25000
30000
2007 2008 2009 2010 2011 2012
* 1 Euro = 4,00 PLN
0,971,45
1,792,05
2,3 2,5
0
0,5
1
1,5
2
2,5
3
2007 2008 2009 2010 2011 2012
230 COMPANIES ALREADY TRUSTED US
Pharmeceutics & cosmetics
Household appliances / electro
- engineering
IT
Packaging
Others
Adaptation and development of 19th century Ludwik Grohman’s factory for office spaces for Lodz SEZ and its investors – year 2011
April 2013
May 2013
Adaptation and development of 19th century Ludwik Grohman’s factory for office spaces for Lodz SEZ and its investors – year 2013
LODZ SPECIAL ECONOMIC ZONE
One of the best rated by investors Special Economic Zone in Poland in years 2009-2012
* KPMG Report „Specjalne Strefy Ekonomiczne.”Edition 2012.
LODZ SPECIAL ECONOMIC ZONE
*„Financial Times” fDi Global Freezones of the Future 2012/13
3rd place in Europe
18th placeamong Special
Economic Zones worldwide
Taking into account Lodz SEZ’s results, incentives, marketing tools and investment potential
LODZ SPECIAL ECONOMIC ZONE
1st placein Europe
4th placeamong Special Economic Zones
worldwide*
* The fDi Digital Marketing Awards 2012, Financial Times
Taking into account Lodz SEZ’s marketing tools used to attract potential investors