PSEDA (Priority socio-economic development area) “Borovichi” has gained four new residents

Four companies have now been added to the all-Russian registry of Priority development area in single-industry towns. The list includes LLC “Bioplant”, LLC “Chaika”, LLC “Borovichi machine building plant” and JSC “BRP Group”. The news was reported by the regional development department of the Russian Ministry of Economic Development.

All these companies are the residents of PSEDA “Borovichi” (Priority socio-economic development area “Borovichi”).
The owners of “Bioplant” are planning to produce plastic goods such as toothbrushes and household chemicals. The total number of investments into the fixed capital will amount to 130 million rubles (excluding the VAT). 26 workplaces are to be created.

LLC “Chaika” would require 131 employees in order to create a wood processing manufacturing facility. It is scheduled to be up and running by 2023. The investor intends to put in 193 million rubles.

LLC “Borovichi machine building plant” as a new PSEDA resident, will launch a production of industrial manipulators. The investments into the fixed capital will amount to more than 15 million rubles (excluding the VAT). Additionally, 56 workplaces will be established.

JSC “BRP Group” plans to implement its wood processing manufacturing project. The investments into the fixed capital will amount to approximately 538 million rubles (without the VAT) and 120 workplaces will be added.   The investor intends to complete all the work by 2023.  The investment sight has already been chosen. It is located near the industrial park “Preobrazhenie”.

As a result, the total number of PSEDA “Borovichi” and “Uglovka” (Priority socio-economic development areas “Borovichi” and “Uglovka”) residents have now reached 12.

As a reminder, the Priority socio-economic development area (PSEDA) residency guarantees an array of privileges. During the first five years the residents are exempt from paying property tax. The following five years the property tax is just 1,1 %.  The federal income tax rate is 3% until 2024 and it goes up to 2 % as of 2025, however the PSEDA residents are exempt from paying federal tax for five years after earning the initial profit. The standard regional income tax amounts to 17 % until 2024 and goes up to 18 % as of 2025. But for the PSEDA residents the regional income tax is 5 % for the first five years and 10% during the following five years.

We should also add that PSEDA “Borovichi” and “Uglovka” are part the “Creating and developing of the modern infrastructure for investors and business enterprise in the Novgorod region in 2022” project. Which is intended to increase investment activity and assist small and medium businesses.