Countries, Regions, Cities

How do you differentiate your location from all the other cities around the world that are also looking for investment, technology, skilled workforce, etc?

Why would someone want to move their company or invest in your area over the tens of thousands of other global locations?

The difference between success and failure will be determined by how you answer these questions.


Throughout the world, cities, states, counties and provinces have been seeking to attract foreign direct investment (FDI) through a variety of measures, including the use of financial and tax incentives and the establishment of Investment Promotion Agencies (IPAs), Boards of Investment (BOI) or Economic Development Agencies (EDA).With today’s economic uncertainty and many cities, states, counties and provinces facing bankruptcy or already bankrupt, along with strong measures to curb spending and other fiscally sound processes, FDI can be a key component to economic recovery if done correctly and responsibly.

The term “FDI incentives” covers fiscal and financial benefits. Fiscal incentives include full or partial holidays from tax; reductions in the standard rate of tax; tax reductions conditional on reinvestment of profits; investment allowances and investment tax credits; accelerated depreciation of assets; preferential treatment of profit on exports; tax deductions based on specific types of expenditure (e.g. R&D); and exemptions from import duties on capital goods or other inputs defined investment promotion in terms of “promotional techniques”, which comprise “providing information to potential investors, creating an attractive image of the location as a place to invest, and providing services to prospective investors and companies.

Incentives have largely been targeted at manufacturing, with varying degrees of discrimination between industries. The widespread practice and offer of lowering tax rates is a common practice therefore locations must provide additional incentives such as special packages for investment in R&D and certain services.

However, the ability of promotional activities to generate investment is likely to be constrained by fundamental conditions related to markets, resources, costs and the general business environment. Promotional activities will be wasted if these conditions are not satisfactory. An investor or company may be persuaded to consider a location, but if investors find that their needs will not be met or that the financial returns will be inadequate or uncertain, they will not proceed with the project.

Most companies or investors rarely engage in comprehensive research of a location relying heavily on the information provided by the location. Successfully persuading an investor or company will fail if potential investors or companies are unaware of a location’s advantages or have an incorrect impression of its business environment. Today investors and companies are looking for locations which can provide the full package.

  • Company taxation - The top rate of tax applied to the taxable profit of rate % companies
  • Tax holidays – Full or partial reduction of profit tax for a defined period
  • Tax credits Reductions in taxable profit, by: amounts related to total investment; accelerated depreciation of fixed assets; employment costs; research and development costs; or other factors
  • Grants Cash grants, based, for example, on number of new jobs created or to reimburse training costs
  • Subsidized locations Subsidized access to premises or sites, e.g. in industrial parks; assistance with cost of infrastructure
  • Free trade zones Areas in which there is a special regime for import duties, sales taxes and profit taxes and which may also be exempt from other rules and requirements; generally related to production for export

Rauch and its strategic partners will work with your City, State, County or Province to design a strategy to attract FDI. Strategy includes but is not limited to:



  • Type of FDI – direct investment or company relocation
  • Purpose of FDI
  • Short and long-term impact and costs associated with an FDI strategy

Proper marketing of the benefits offered by the location such:



  • as cost of living
  • education
  • jobs
  • surrounding areas
  • population
  • job creation
  • crime
  • how you can support an inbound company
  • quality of life
  • tax incentives and other
  • develop reverse business missions inviting compatible industry sector(s)/ companies

Non-Disclosure and Confidentiality


Due to the nature of information that will be exchanged between Investor and Rauch, Rauch will require that a mutually binding non-disclosure and confidentiality agreement be signed. Information provided to Rauch will be held in strictest confidence and will only be used for the purposes of providing services as requested by the applicant.


Disclaimer


Rauch is not a licensed broker and is only acting as facilitator and manager of opportunities between those seeking investments and investors. Rauch makes no representation, warranties or guarantees of the outcome of any investment program entered into by investor.

For questions or additional information please contact Rauch via email at:
gov@rauchinternational.com

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Email: gov@rauchinternational.com