Poland is looking for new investors, for that reason and in order to provide the best service, the Polish minister Donald Tusk proposed a public spending program aiming to boost the growth of the foreign investment in the country. A “Special Investment Vehicle” has been created the last year for this although it is not operative at the moment, it will be along this year.
Other “support to investment” mechanism is the Polish Agency for Entrepreneurial Development (PARP) which stands out because of their special care on the management of the different programs aimed only to small and medium sized companies’ development and their international activities. Thus, it supports companies through the finance and knowledge providing economic information of the country, studies, reports and analysis relevant for the companies. Regarding finance, EBRD (European Bank for Reconstruction and Development) stands out as the great investor in Central and Oriental Europe investing direct and indirectly.
EBRD has invested in more than 1 million projects in which the funds are from 5 € million to 230 € million. It also provides financing, guarantees, facilities leasing and trade finance. With respect to indirect investments, EBRD provides credit lines to financial intermediaries.
Poland is the perfect destination for internationalization. It has a large incentive system for investment regulated by the Law of Financial Aid to Investors (March 20, 2002), by the Law of State Aid Procedures (April 30, 2004), and by the articles 36, 73, 86 to 89 and 296 of the Treaty of Accession to the EU. The investor may benefit from tax incentives and financial assistance through regional, horizontal and sectorial aid.
Poland has a great advantage as state aid levels are higher than in other EU countries and it is essential to meet certain requirements to qualify for the aid. The company applying for such aid must make a minimum investment of 100.000 euros, contributing at least 25% with a minimum stay in the country for 5 years and 3 in the case of small businesses.
Poland also has Special Economic Zones (SEZ) located in less developed areas in order to boost businesses and balance differences between regions.
Investors will have favorable treatment in these areas until 2020. If they want to make a significant investment, Poland has developed the Multi-Year Support Program (MASP) for sectors such as automotive, electronics, biotechnology, Shared Service Centers, Research and Development Centers…
This aid is compatible with the regional aid. It is usually awarded by concepts as employment, training, environmental protection, research and development and financial instruments. It is remarkable the aid for R&D that goes to projects from different areas. Companies will also benefit from aid to support measures promoting the efficient use of natural resources. It can be perceived as regional aid if environmental protection is related to a new investment or horizontal aid if environmental protection is in the modernization and it can be demonstrated that this aid improve existing facilities and infrastructure.
Certain sectors could have priority and therefore receive grants, according to the promotion program for priority investment in the Polish economy for the years 2011-2020 adopted at the Council of Ministers on July 5, 2011. In this case, companies must depend only on this grant and must be included within the following sectors: automotive, electronics, aviation, modern services, Research and Development and biotechnology.