The Nizhniy Novgorod region

For the purposes of decreasing administration obstacles the Government of Nizhegorodsky region introduced a clear, distinct and exact co-operation scheme of the Government and an investor acting according to the principle "one window". The only thing that an investor has to do at the first stage of project realization is to send an application letter to the Ministry of investment politics especially created in the structure of the Government of Nizhegorodsky region.

After receipt of the application letter officials exclusively on their own accord collect the whole necessary set of documents for an investor: technical conditions for engineering provision, fire alarm system, ecology; information about a land area is being confirmed and other issues. All parameters of the proposed investment project are considered at meetings of the Investments council with the presence of the governor of the region. On receipt of a positive decision of the Investments council a set of permission documents is created: the act of plot selection is signed and after the necessary procedures the right to land is issued, Investment agreement with the Government of the region is signed and permission for projecting and construction is issued. The Investment council includes leaders of all organs of power, organizations and departments involved in the process. Also federal structures and organs of local government are included. Thus, after the receipt of a positive decision there are no more additional and time-consuming requirements towards an investor. Investment agreement determines the rights and responsibilities of both an investor and the Government of the region in order to protect first of all the rights of an investor.

The responsibilities of the region include not only administration support of the investment project but also elimination of excessive requirements from the companies providing engineer infrastructure towards an investor, and in some cases the Government prepares the necessary documents and brings up engineer infrastructure at the account of regional budget.

The whole procedure has accurate terms: the whole procedure from submitting an application up to the receipt of permission documents takes no more than 149 days.

This is a maximum term on a condition that an auction is held to obtain a land plot as property. If an auction is not involved then the term is considerably reduced.

There is one more complex of regional measures directed at stimulation of investment processes. These are regional privileges permitted by federal legislation. Level of investment legislation of the region is rated by rating agency "Expert PA" as being at the second place in Russia.

This complex of privileges is confirmed by Legislative assembly of the Nizhegorodsky region and becomes law.

The most significant projects on agreement with tax authorities receive status "priority" and tax privileges. As far as tax on profit the rate decreases up to 25% from the part paid into the regional budget, and as for tax on assets in some cases decreases up to 0%. Privileges are given for the term of project compensation which is applied for and confirmed by the specialists of the Government of the region.

Practically all projects envisaged direct foreign investments receive status "priority". It is clear that it is difficult for a potential foreign investor to understand the peculiarities of the work of the local authorities; therefore for all foreign projects a "curator" is appointed selected from the number of the colleagues of the Ministry of investment politics. This curator provides co-ordination of an investor's actions.