Business opportunities In Malopolska for Indian Investors

We are creating a new image of business in Małopolska and are responsible for the development of the region, as well as its strong position in central and eastern Europe. Many years’ experience of co-ordinating activities with project partners to promote business will ensure the stability and professionalism of the new investor service centre, BUSINESS IN MAŁOPOLSKA Centre.

What makes Małopolska so attractive for investment ?

• Location within maximum 2 hours of flight to other Western European cities
• Lower labour costs as compared to Western Europe
• Highly skilled employees
• Common knowledge of two European languages, e.g. English – German
• Neutral time zone, good work organization system
• Stable GDP growth
• Tax system – CIT of 19 %
• Tax exemptions in Special Economic Zones
• Quality of life: several top tourist location, skiing resorts, great historical monuments, golf courses

About region

Małopolska Region and City of Krakow

In the recent years, foreign investors have become increasingly interested in Poland. A slight slowdown in inflow of foreign investments was followed by a significant growth of their value as compared to the situation at the beginning of the decade. The increase in foreign investments has been recorded since 2004.

With educated and competent employees in place, rapidly growing economy, convenient location in the centre of Europe and favourable prospects for upcoming years, Poland is attractive place for foreign investors from a number of branches.

Małopolska (Lesser Poland), with its largest city – Kraków – is particularly well-positioned in this respect. This has been confirmed by findings of the study European Cities & Regions of the Future 2008/09.

An unquestionable advantage of Krakow and Małopolska is their convenient geographic location, on the crossroads of important transportation routes.

• Good transport accessibility of the city is being constantly improved by the executed infrastructural investment projects.
• Quick and convenient train connections with Warsaw and other major and minor cities
• An international airport with numerous domestic, European, and pan-European connections are all very significant to the efficient business activity. It takes approximately 25 minutes to get to the airport by car, and thanks to the recently activated train connection, it is possible to get there in just around 12 minutes.
• The geographic proximity of the developing markets of Ukraine and Russia provides a range of options connected with exports of goods to those markets and imports from the East to all European countries, as well as countries outside Europe.

Total population:

Malopolska - 3 280 100

Krakow - 756 000

Area (km2):

Malopolska - 15 108

Krakow - 327

Registered domestic business entities:

Malopolska - 297 350

Krakow - 104 668

Including companies with foreign capital:

Malopolska - 3342

Krakow - 2372

Invest

Investors in Małopolska include a global leader in the metallurgical industry, Arcelor Mittal Poland, and Hindustan Computer Limited, whose parent company HCL Technologies BPO Services is among the biggest companies in the BPO and IT sector worldwide. The company’s location in Małopolska (Zabierzów Business Park) is the perfect recommendation for other similar companies from India.

In 2007 Indian centres of BPO companies appeared in Poland: GE Money and Genpact as well as an Indian controlled company of American Cabernet: SlashSupport. In Łódź Infosys was established, and bought three accounting centres from Philips.  HCL opened an IT centre in Cracow. At that time Małopolska was also considered as a potential production location for Tata Consultancy Services (with offices in Warsaw). Other Polish investment projects of Indian companies include Apollo Tyres (tyre production) and Videocon (investments in a factory in Piaseczno). Also, Essel Propack Corporation (from Arista Tubes Group) built a laminated tube factory for the cosmetics and pharmaceutical industry for USD 23 million in Międzyrzecze and Kostrzyńsko-Słubicka Special Economic Zone.

Incentives

European Union structural funds and investment incentives

    66 billion EUR to be invested in Poland until 2013 
    9 billion EUR for innovation and R&D
    10 billion EUR for training and labor market development
    2 billion EUR are to be located by regional authorities
    Tax incentives in special economic zones – 50% -  70% of the investment
 value
    Cash grants for new jobs creation

Special economic zone incentives

The available amount of state aid can be calculated either on the basis of investment outlays or two-year employment costs of the newly employed personnel – multiplied by the maximum intensity of the aid

For new investment

•    Tax exemption cannot exceed 50 - 70% of investment outlays:
•    the cost of acquiring land
•    outlays for buildings and constructions
•    outlays on fittings and fixtures for the facilities

For creation of new jobs

•    Tax exemption cannot exceed 50 - 70% of the value of two-year’s labor costs of newly employed staff (gross salaries and other mandatory charges related to employment)

Public - Private Partnership offers from Malopolska region

The public-private partnership market will develop intensively in Poland between 2008-2012, with its value estimated at € 40-50 billion.  As much as 45% of public entities surveyed in 2007 planned to cooperate with private entities in executing public tasks in the future The needs of public entities arise from the necessity to speed up closing of the development gap in the infrastructure, which is particularly acute in transport (motorways and railway lines). New challenges are associated with the preparation of the sports infrastructure and attendant facilities to EURO 2012 - to be co-hosted by Poland - but also with the necessity to adapt the country’s infrastructure to EU requirements, for example in the transport sector or the health service. Two new statutes devoted to public-private investments have just come into force (2008) : the Act on Public-Private Partnership and the Act on Concessions for Construction Works or Services.  32 Public-private investment projects from Małopolska Region

to know more click here (pdf)

Team

For more information please contact:
The Malopolska Agency for Regional Development
The Foreign Direct Investment Support

phone + 48 (12) 617 66 53
fax + 48 (12) 617 66 66
e-mail: rcoi@marr.pl
www.marr.pl