Inward Investments

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One of the main issues to be considered when deciding on starting an investment project is to find and evaluate an appropriate investment site. This process may be incidental or intuitive; it can, however, be based on gathered experience, practical knowledge of location success factors, appropriate analysis of essential conditions (various for different industries) or on a combination of all those factors. In order to avoid unnecessary risk related to the process, PwC has developed a unique methodology of choosing an investment site. The methodology is practical and includes, among others, visiting chosen locations and negotiating with local authorities.

Growing pressure on controlling costs encourages more and more businesses to look for new, more economical locations for their manufacturing plants in the east, especially in the new EU Member States.

One of the factors that should not be forgotten in such considerations is the state aid provided to such companies. Your company may qualify for such aid as well. Applicants from such sectors as new technologies, strategic services and scientific and research centres who meet certain requirements are offered a range of investment incentives. Your company may gain financial aid amounting even to 50% of its value.

How can PwC help your company?

Investing abroad includes at least three main stages:

Pre-investment process

The pre-investment stage encompasses:

  • Preparing a complete evaluation of the advantages and challenges of investing in Central and Eastern Europe,
  • Searching for and evaluating an investment location,
  • Developing the optimal model of state aid taking into consideration the company’s needs,
  • Providing complex help in the application process and in obtaining available forms of state aid,
  • Negotiating with state administration and local government institutions, consulting in such negotiations,
  • Providing guidance through all registration processes required when setting up a company,
  • Obtaining all customs permissions for investment import,
  • Obtaining (if needed) Binding Tariff Information for investment goods classification,
  • Consulting in Ukrainian legal, fiscal and customs regulations and other issues that may arise while implementing an investment project,
  • Assisting in purchasing real estate

Investment

This service offered by PwC refers to investments located in Ukraine. During this particular stage of our activity in Ukraine, our company may help you with the issues related to organisation, commerce, logistics and customs.

Our help encompasses:

  • Providing assistance in the current development of project plans,
  • Cost modelling,
  • Assisting in project implementation,
  • Controlling compliance with all statutory requirements in the period of receiving state aid,
  • Creating shared service centres,
  • Selecting employees,
  • Organising co-operation with a customs agency,
  • Creating various types of customs procedures that you may wish to implement (bonded warehouse, inward processing procedure in the system of suspension, processing under custom control, etc.),
  • Obtaining tariff quota or tariff suspension,
  • Creating the most profitable tax structure for your company taking into consideration Corporate Income Tax and Goods and Services Tax; creating tax structures for Personal Income Tax for foreigners employed in Ukraine,
  • Assisting in quickly recovering VAT at the investment stage (crucial for optimising cash flow at the investment stage).

Post-investment care

PwC offers complex services in the entire process.

Having developed various projects, we have gathered practical experience in the process of choosing an investment. Hence, we are able to answer such questions as: why, where, when and how to set up a production plant. We know how to find credible information and how to evaluate it and apply it in a project. We understand the entire investment process and we facilitate contacts with local authorities. Such knowledge is essential when considering a particular location. We offer our clients various services: from choosing a location, to cost modelling, compiling and supporting business justification, planning an investment, supporting the recruitment process, assisting with the transfer of processes and overall project management.

Moreover, we help optimise state aid. Our help encompasses drawing up all essential applications with required attachments. We also provide support in the negotiation process.