Applications open for Russian Arctic resident status
Starting August 28, potential investors can apply to become residents of the Russian Arctic zone via arctic-russia.ru. Applications are welcome from legal entities (individual entrepreneurs) registered in the Arctic that plan to carry out a new investment project or to launch a new type of economic activity with capital investment of at least 1 million rubles. Eligible companies cannot have outstanding taxes or duties exceeding 25 percent of their asset balance, or be in the midst of an insolvency, liquidation or restructuring procedure.
The application form is very straightforward and includes basic information about the applicant and the planned investment project. After filling out the form, the investor will be able to receive complete information about the available services, including the opportunity to apply for a resident status. The residence procedure is also very simple and requires three easy steps for completing the package of support documents.
"With support from consultants at Arctic development institutes, applicants can complete their application forms via their personal accounts, prepare the correct support documents and, without further delay, become a Russian Arctic zone resident within ten days. Residents benefit from an entire range of incentives for conducting business," commented Alexander Kozlov, Minister for the Development of the Russian Far East and Arctic.
His deputy Alexander Krutikov noted that an investor account not only makes it easier to obtain resident status. It is a one-stop-shop that helps entrepreneurs communicate with the ministry and the Arctic development institutions in a convenient format, receive prompt responses to inquiries and support in case of problems.
"We have taken important steps towards improving the public administration system with respect to Arctic region development. Russia's Arctic will almost completely be covered by a special economic zone with a range of available tax concessions. Most importantly, the approach is changing: if in the past, the state invested its own funds in the Arctic — and those funds were rather limited — now we are focusing on supporting investors and assisting with economic projects. We will continue to improve conditions for doing business and develop the economy of the Arctic territories because this is what will eventually improve the quality of life there," said Yury Trutnev, Deputy Prime Minister and Presidential Plenipotentiary Envoy to the Far Eastern Federal District, who also chairs the State Commission for Arctic Development.
On July 13, 2020 President Vladimir Putin signed a package of federal laws on a system of benefits for businesses in the Arctic. Developed by the Ministry for the Development of the Russian Far East and Arctic, the package includes the Federal Law On Government Support for Business Activities in the Arctic Area of the Russian Federation and corresponding amendments to Part 2 of the Russian Tax Code and several other legislative acts. As a result, Russia's Arctic is becoming the world's largest economic zone with a common package of incentives, covering an area of almost 5 million sq km.