JOHN DIERCKX - the private investigator

I am pleased to announce that my good friend and colleague, John Dierckx has launched the blog Ask the Private Investigator New Zealand http://nzpi.blogspot.com/

John Dierckx LLM, Dierckx & Associates, Christchurch, New Zealand, Fraud Investigator, Fraud Investigations, - Prevention & Detection Legal Investigations, Insurance Investigations,Criminal Defence Investigations,Corporate Espionage/Leakage of Information Investigations, Information Security, Computer Forensic Services, Internet Investigations Dierckx & Associates http://www.dierckx.co.nz/ is proud to be associated with Corporate Risks New Zealand (SI) Ltd

MARKET OF REAL ESTATES IN POLAND

Article on real estates market in Poland: Daily “Rzeczpospolita”, 21.05.05 Nr 120

MARKET OF ESTATE

Cheap grounds attract investors. After the wave of investments of Irish developer firms in Poland, the Spanish are prepared for expansion on our market. They can invest in Poland over billion zloty. On Friday, the Spanish firm Fadesa, specialized in residential investments, has signed an agreement with Prokom Investments to create a company Fadesa Prokom, where the Spanish will hold 51 percent of shares. Its first investment will be a construction of about thousand eight hundred apartments in Wilanów (district of Warsaw) on surface of 17 ha. Company will buy 12 ha of ground from Prokom Investments, and next 5 ha from Bank Millennium. The new company will be specialized in construction and sale of apartments. It is prepared for next investments also in Krakow also, Gdynia - Sopot - Gdansk and in Poznan, but in smallest scale already. The investments can start at the beginning of next year. The owners of new company do not exclude to introduce it in future on stock exchange. - I am honored that we have such partner. We want to achieve the position of leader on Polish market has said during Friday press conference - Mr. Ryszard Krauze, main shareholder of Prokom Investments. Several weeks ago there was organized a conference in Barcelona by Eurobuild Poland, in devoted to investments in Poland, which was of a big interest for Spanish developer. - The Spanish are really the most active. The interest is not expressed in significant investments else, but from the declaration results, that the can invest in Poland hundreds millions euro - has said Mr. Jacek Bielecki, general director of Association of Polish Developer Firms. It is not accidental, that firms from Spain and Ireland want to invest on market of estate. - The Spanish know from their own personal experience how big money from EU founds has influence on prices of real estates, and development of developers’ market. They expect the same in Poland - has said Mr. Michal Kubicki, the director of Realia Polska Inwestycje, the company belonging to the Spanish company Realia.

BIG POTENTIAL

Mr. Jacek Bielecki adds another argument. - The Spanish have fear of overheating of the economy in their country. There were build in Spain in last years over 500 thousand apartments a year. So, they search a market, where they could invest money. Poland is interesting for them, because Poland is the biggest new member of the Union, but simultaneously has the worst residential situation from among all 25 countries of the Community - says Mr. Jacek Bielecki. In Poland are present the two biggest Spanish firms - Ferrovial, the biggest shareholder of Budimex and Necso Inmobiliaria, the company from the group Acciony, the main shareholder of Mostostal Warszawa. Recently Promex has started activity in our country, belonging to Construcciones Juanes. Also Realia Immobilaria has opened an office in. The same firm wants to buy a company Pekao Development from the Bank Pekao. They are also prepared for entrance on our market Comapa Inmobiliaria and Inversiones Inmobiliarias.

SPECIALISTS ON APARTMENT MARKET

The Spanish firms have been specialized in residential investments, acting on their own market. Strange nothing, that they want to invest in Poland in this segment -; has said Mr. Sven von der Heyden, the owner of German developer, acting in Poland Spain. Mr. Jacek Bielecki confirms that first of all, the Spanish search grounds, where they could build houses and residential districts. Among representatives of developers companies there are opinions, that the Spanish and Irishmen can be the biggest investors in Poland on market of estate. Not all agree with them. - The Irish and Spanish firms are visible really most, but the enterprises with British capital have investments of much bigger value, as Orco Group, for example. It do not think, that the Irishmen and Spaniards could predominate the Polish market polish - says Mr. Robert Chojnacki, the chairman of the company Rednet, the owner of the web site, devoted to the residential market. According to Mr. Jaroslaw Szanajca, the chairman of Development House, one of the biggest developer company in Poland, first of all, the consequence of expansion of foreign enterprise on the Polish market will be the appreciation of prices of estate. It is visible the growth of competition, which is related with expansionism of foreign firms. It causes the appreciation of prices of grounds and apartments. It paradoxical, but so there is in this sector, that growing competition does not lead decrease of price of apartments, but on the contrary, it makes their increasement. - has said Mr. Jaroslaw Szanajca.

by Artur Burak

Especially for "Rzeczpospolita": since long time we were interested in Polish economy since long time. Mr. Manuel Jove Capellan, the chairman of Fadesa: Fadesa invests for a long time on foreign markets. We are present in Morocco and Portugal. We are in Romania fro many years, but from the last year we are also in Hungary. We will be on other markets also. Poland, which is a very promising country, was of our interest since long time. From the point of view of population, have for us the particular values. We specialize in construction of apartments for middle class. For average price and good qualitatively. We think that there is a lack of such investment in Poland, so, this market is so interesting for us.

Real and Estates Fair

We have taken part also on 8-9th April, 2006 in Real and Estates Fair in Warsaw - Torwar.
Estates Fair, Warsaw 8-9th April, 2006, Torwar

Real and Estates Fair

We have partaken in the Real and Estates Fair in Warsaw, on 1-2nd April, 2006: Estates Fair, Warsaw 1-2 April, 2006

BUSINESS CONSULTING

Business Consulting Bureau was founded to provide consulting and debt collection service to Polish and West European companies running business in Poland and Eastern Europe.

1. BUSINESS CONSULTING

Our advisory services offered in business run in Poland include:

• adjustment of the legal status of real estate,
• purchase of real estate,
• the determination and transformation of the legal status of real estate,
• inheritance and re-privatization law

We draft civil law contracts, provide mediation in business negotiations, including talks between Polish and international partners, we issue legal opinions, represent clients in legal proceedings connected with contractual obligations. In addition, we offer advice and full legal assistance in terms of contracts and statutes, representation in registration court, as well as in the bankruptcy and composition proceedings. Likewise, in terms of the labor law, tax law, etc., we provide full scope of legal assistance, in particular drafting the employment and service contracts, competition ban contracts and broadly understood labor relationship agreements, work regulations, remuneration and other internal matters of the company. We represent the entrepreneurs in labor courts and act on their behalf vis a vis the employment authorities. Our legal expertise, property experience, knowledge of the local market, and international perspective will be employed at the investor's service to obtain outstanding value from the residential property investment in Poland. Our collaboration with the chartered auditors broadens our offer to include comprehensive tax advisory services.

2. DEBT COLLECTION

We also offer professional, effective debt collection at affordable prices in the territory of Poland, Western and Eastern Europe and elsewhere.

We deal with the following proceedings:

• arbitration and out-of-court
• court
• arbitration pre-execution
• execution

To place your order, you only need to mail us a copy of documents justifying the debt (copies of invoices, delivery notes, and demands to pay) and signed agreement and the power of attorney to act on your behalf. You do not need to be involved in any further procedures which we carry out on our own.

In co-operation with professional law office we offer complete service in standard, reconciliation and writ court proceedings, and reliable execution with the participation of tested bailiffs. In case no debtor’s assets are found, we ensure immediate issue of ineffective execution statement to book the debt as tax-deductible cost of the debtor’s company.

INFORMATION ON FOREIGN INVESTMENTS IN POLAND

It is possible for the foreign capital to be invested in Poland in the following ways:

1. representative office of a foreign company,

2. agency and representation services provided by Polish business entities,

3. companies with foreign participation.

1. Representative offices.

Foreign natural and legal persons, including banks and foundations, may establish a representative office in Poland. Their permitted scope of economic activities is defined in the licence granted to establish the office. Representative offices are governed by Polish law, including fiscal and accounting regulations.

Representative offices (apart from banks) may operate in the fields of foreign trade, tourism, culture and transport. In particular their activities include:

* publicity;

* distribution of information;

* negotiations and other preparatory activities;

* the signing of agreements for and in the name of foreign companies.

Furthermore, representative offices are allowed to perform warranty and general services (which can be charged for) consisting of technical assistance and the installation and after-sales service of machines and equipment sent by the parent company to Polish importers.

Representative offices may take on the form of:

* branches (which have the greatest scope of permitted activities);

* technical information bureaux, which disseminate technical and scientific information on

the products of their parent company;

* supervisory offices which oversee the performance of contracts signed with Polish

companies.

Representative offices may employ Polish nationals and foreigners alike.

Branch or technical information representative offices need a licence prior to their establishment. Supervisory offices are created freely, but the contract signed with the Polish company should stipulate the need for such supervision.

Licences for the establishment of representative offices (excluding banks) are issued by: Ministry of Foreign Economic Relations (foreign trade), Committee of Physical Education and Tourism (tourism), Ministry of Culture and Ministry of Transport. Majority of licences relates to foreign trade and is issued on the basis of the following documentation:

* an application containing a brief presentation of the parent company (financial standing

and scope of operations), information on the planned activities in Poland and on previous

contacts with Polish enterprises (name of the enterprise, type of relationship and

turnover);

* statement of the foreign investor that he will respect Polish law;

* a declaration by the foreign investor of his intention to establish a representative office;

* a certified copy of the foreign investor’s entry in the commercial register of his country.

Once the representative or technical information office commences operations, it should, inter alia:

* inform the Ministry of Foreign Economic Relations of its address, telephone and fax

number, send names of its employees as well as submit to the Ministry the copy of the

power of attorney for its manager, and any subsequent changes thereof;

* use, in Poland, the name and registered address of its parent company and also its own in

Polish;

* submit an annual report on its activities, at the latest by the end of February each year,

giving information on the personnel employed, the turnover of the parent company with

Polish enterprises, the technical assistance rendered, co-operation and relationships

with Polish companies, and expenses in Polish złotys incurred as current activity

expenditures, specifying their type and value.

Lifetime of a representative office is specified in a permission from the Ministry. Usual maximum two years, renewable subject to application.

2. Agency and representation services

Agency and representation services may be provided by a natural person or a company on behalf of foreign companies. Generally, such activity consists in promoting and advertising a foreign partner and gathering inquiries and offers for the services rendered by that foreign partner, or in exploring the Polish market in search of certain products ordered by the foreign partner.

3. Companies with foreign participation

A foreign person (whether legal or natural) may conduct full business activities only in form of a limited liability company (Sp. z o.o.) or a joint stock company (S.A.).

Companies (Sp. z o.o. and S.A.) with foreign participation are called ‘’joint ventures’’ (j.v.).

There are no specific legal requirements as for the percentage of shares held in the capital by a foreign party. Hence a company may be either purely foreign (100% of foreign capital) or combined (capital divided into Polish and foreign shares).

To establish a company it is necessary to have the following documents:

1. an extract from the register of the foreign company which is to be a shareholder of the Polish company;
2. a sample of the signature of all members of board of directors of the Polish company; this document must be certified by a notary. If the director of a Polish company is present at the place in Poland, a such document will be done here;
3. a notary power of attorney given by the board of directors of the foreign company to adwokat (a barrister) Andrzej Philips. This power must be confirmed by an apostile.

With those documents it is necessary to go to a Polish notary to create the articles of association. The articles of association must define the following:

- the name, place of incorporation, a scope of activities of the company;

- duration of its activities - if it is to be established for a finite period;

- the value of equity capital;

- the initial capital.

The initial minimum capital for a limited liability company is 50.000 złotys. The capital may be covered with a cash or goods like cars, equipment’s, machines etc.

Covering the capital with goods it is necessary to describe them very exactly in the articles of association. If it is covered with cars it is necessary to have: their value, year of their production, numbers of the engine, number of chassis. No mistake may be done in this description.

The articles of association must be registered by the court of justice.

To the application to the court it is necessary to enclose:

- articles of association,

- list of partners, signed by the board of director,

- resolution appointing the board of directors signed by the shareholder(s), so the board of directors of the foreign company;

- declaration, signed by the board of directors, that the capital will be covered with cash or goods sent from abroad. No money requested to be shown at the registration.

- the sample of signatures of the board directors (of a Polish company).

WHY DOES IT PAY TO INVEST IN POLAND ?

WHY DOES IT PAY TO INVEST IN POLAND ?

WHY POLAND ?

Poland's entry into the European Union on 1 May 2004 was the culmination of wide-ranging political and economic transformation initiated in 1989. As a part of the Single European Market, Poland is still undergoing economic and social changes. With economic growth at 5.7% (2004 est.), a young, well-educated and ambitious labour force, location at the very heart of the continent and low corporate income tax (19%), Poland has become an exciting place for investors from around the world.

Because of its 38,6 million market and cheap and skilled labour force Poland is a very attractive place to invest in but not only for that reasons. Poland has prepared a number of economical incentives for foreign business to make it one of the most interesting and beneficial places in Europe to invest in.

Investors who benefit from the investment grants are eligible also for other forms of support, such as: tax relieves in Special Economic Zones, local tax relieves etc., however the total value of grants and other kind of public aid offered to the investor cannot exceed 50% of the investment outlays.

Poland is also one of the youngest countries on the continent - 35% of Poles are under 25 years of age.

The average price of 1 m2 of a new apartment on a real estate market in 2002 was 391,5 USD. The highest prices (691 USD) you can find in the central Poland with Warsaw as a capital where prices average between 750USD and 1250USD/m2. The cheapest apartment can be found in the south (with a strong mining industry and Katowice as a capital) priced at 256USD/m2.

Polish labour force is still very cheap. It costs just $3.0 an hour (including social security contributions) to employ a skilled manufacturing worker in Poland.

In 2002 the average gross salary in Poland was estimated at 633 USD per month. The lowest guaranteed salary in Poland (from 01.01.2003) is 280 USD.


PURCHASE OF REAL ESTATE BY FOREIGNERS

Purchasing property by foreigners is governed by the provisions of the Act of 24 March 1920 on Purchase of Real Estate by Foreigners with further amendments. The general rule is that foreigners require a permit from the Minister of Internal Affairs and Administration to buy real estate.

The following real estates you may buy without the obligation to obtain a permit

* Purchase of independent residential premises
* Purchase by a controlled corporate entity, for its statutory purposes, of undeveloped real estate in urban areas if their total area in the entire country does not exceed 4,000 m2
* Purchase of real estate by a foreigner who has been residing in Poland for at least five years from the issuance of a permanent residence permit
* Purchase by a foreigner whose spouse is a Polish national and who has resided in Poland for at least two years from the issuance of a permanent residence permit, of real estate that will become the joint property of both spouses
* Purchase of real estate by a foreigner if, on the day of purchase, the foreigner is entitled to statutory succession after the assignor of the real estate, provided that the assignor was its legal owner or perpetual usufructuary for at least five years
* Purchase of real estate by a foreign bank, which is a mortgagee, after an ineffective auction under enforcement proceedings

Cases where a permit is required

A permit is required in each case of real estate purchase, i.e. acquisition of ownership title or perpetual usufruct right to real estate on the basis of a legal transaction.
The following require a permit:

* Purchase of real estate
* Purchase or taking up of shares in a commercial company which has a registered place of business in the Republic of Poland and is the legal owner or perpetual usufructuary of the real estate

European Economic Area (EEA) nationals and entrepreneurs must obtain a permit in the following cases:

* To purchase agricultural and forest land - for 12 years after Poland became a member of the EU (i.e. until 2 May 2016),
* To purchase a second home (i.e. the real estate which is intended to be developed for residential or recreational purposes and which will not be used by a foreigner as the habitual residence) - for five years after Poland became a member of the EU (i.e. until 1 May 2009).

However, EEA foreigners will not be required to obtain a permit during those transitory periods in the following cases:

Ø to purchase agricultural land situated in:

* the eight western and northern provinces – after the end of the seven year period since the execution of a lease contract (date of execution must be certified), if during that period they have pursued farming in person on the land concerned and have legally resided in Poland,
* the eight central ane eastern provinces – after the end of the three year period since the execution of a lease contract (date of execution must be certified), if during that period they have pursued farming in person on the land concerned and have legally resided in Poland

Ø to purchase a second home:

* if the purchaser has legally and continuously resided in Poland for at least four years, or
* for the purpose of pursuing business activities in the form of tourist services