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 International Law Offices
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Total area: 603,700 sq. km
Population: ~48 million
Principal cities: Kyiv (Kiev), Donetsk, Zaporizhzhya (Zaporozhye), Dnipropetrovs’k (Dnepropetrovsk), Kharkiv (Kharkov), Lviv (Lvov), Odesa (Odessa)
Official language: Ukrainian (although in business Russian is mainly used)
Neighboring states: Russia, Moldova, Belarus, Poland, Romania, Slovakia, Hungary
Currency
: Hryvnya (UAH)
Ukraine has focused long ago on closer integration with the rest of the world while preserving its traditional links with the countries of the former Soviet Union. Reflecting its importance and size, Ukraine is a member of the United Nations, the IMF, the World Bank, the EBRD, etc.
Investment policy and investment possibilities
Foreign ownership of most types of business is permitted.
Foreign investments are welcome, especially, those ones involving technology transfer and capital.
Similar regime of investment and business activity is applicable to local and foreign investors.
Protection of foreign investments is available under Ukrainian legislation and international treaties.
As of January 1, 2002 foreign investors can own non-agricultural land in Ukraine.
Possible business structures and corresponding regulations
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The corporate and management structure is relatively flexible.
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A joint stock company is a legal entity whose capital is divided into a specified number of shares. There are two types of joint stock companies: "open" joint stock company and "closed" joint stock company. Shares of joint stock companies must be registered with the State Commission for Securities and Stock Exchange.
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Limited liability companies require less complex structure. A limited liability company does not have shares. Participants in the company own a percentage of the company’s capital.
- To establish a presence in Ukraine representative offices are used although they can be engaged in business activities. The representative office does not constitute a legal entity.
- A joint venture can take the form of a company which has a distinct legal personality or an un-incorporated entity which does not.
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Concessions are allowed in certain fields for the period up to 50 years.
- Preliminary approval from the Antimonopoly Committee may be required for certain acquisitions of shares or assets.
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There is no ceiling regarding the amount of capital a foreign company invests into a Ukrainian company.
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Foreign investments must be registered with the local authorities.
Tax planning
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Ukraine has developed a wide double tax treaty network.
- Domestic tax treatment applies to foreign corporations and expatriate personnel.
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Dividends, interest and royalties may be freely repatriated.
- Withholding tax of 15% applies to dividends, interest and royalties, but domestic tax law is subordinated to international tax treaties.
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The principal taxes in Ukraine are corporate profits tax, personal income tax, VAT, payroll taxes, excise tax, land tax, tax on owners of motor vehicles and import duties. There are also other taxes and different local taxes that may be levied by the local authorities.
Investment protection & incentives
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Investment incentives are generally available on an equal basis for both local companies and foreign investors.
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In-kind contributions may benefit from certain tax exemptions.
- Property (except for goods for re-sale) contributed by a foreign investor to the statutory fund of a Ukrainian entity can be imported free of import duty.
- Exemption from import duties is available in respect of goods traded with ex-USSR countries.
Accounting and financial reporting and banking system
- The banking system consists of the National Bank of Ukraine and commercial banks. The National Bank of Ukraine (NBU) is the country’s central bank that leads a uniform monetary policy and performs bank supervisory functions.
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The law On accounting and financial reporting provides for National Regulations (Standards) on Accounting in Ukraine (NR(S)AU) which are intended not to contradict IAS. Overall, standards combine the concepts found in IAS, but with less interpretative guidance.
Exchange control
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Payments under foreign trade contracts between a resident and a non-resident entity should be in foreign currency only.
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Certain transactions between residents and non-residents require a license from the NBU.
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Foreign loans must be registered with the NBU.
- Payments in foreign currencies between residents of Ukraine are prohibited.
- Ukrainian companies usually must receive payment for exported goods, and obtain pre-paid imported goods within the period of 90 days.
The above is intended to provide a brief guide only. It is essential that appropriate professional advice is obtained. Our company will be glad to assist you in this respect.
Please do not hesitate to contact us.
© 2007
International Law Offices | |
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| 20 november 2008 The law firm International Law Offices became a contributor of the annual project of the professional investigative edition Doing Business 2009.
Doing Business 2009 is a joint publication of the group the World Bank, the International Finance Corporation and Palgrave Macmillan.
Doing Business 2009 is the sixth in a series of annual reports investigating the regulations that enhance business activity and those that constrain it. The present publication covers data on economies of 118 countries from Afghanistan to Zimbabwe.
The publication presents 10 stages of the life of a business.
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| 14 november 2008 “BUSINESS IN UKRAINE” is the first brochure representing collected works of the authors of International Law Offices that opened series of the same name.
Publication was timed to the event organized by International Law Offices – the conference Doing Business in Ukraine: Odessa and Odessa region that was held in October of 2008.
Creators of the present publication are considerable composite authors of the firm that have done their best to consolidate the whole materials prepared and published in various Ukrainian and foreign editions during 2006-2008.
more details… | |
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| 30 october 2008 In 2008 International Law Offices made its contribution into the large-scale printing project Getting the Deal Through series, section Shipping, by publication of the information review on Ukraine in this professional edition that is one of the influential in Europe and in the world in publication of reviews on shipping. Getting the Deal Through prepares comparative analysis for practice lawyers and corporations in different sectors of the economy in some countries.
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| 28 october 2008 Use of the FCR in Ukraine
By partner Arthur Nitsevych
Published in Forwarderlaw.com – the comprehensive resource for legal information on freight forwarding global logistics.
16th of September, 2008
The present article written by partner of the Law Firm International Law Offices Arthur Nitsevych, CNI, is dedicated to the FIATA FCR.
“…Technological progress results in development of the social relations. New forms of transport documentation appear in the field of forwarding. And even nowadays Ukraine adopts the world experience in application of the traditional forms. ..”
The full text of the article you may find here
http://www.forwarderlaw.com/library/view.php?article_id=524&highlight=Arthur+Nitsevych
or at the web-site of ILO in Articles & Publications directory.
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| 18 september 2008 International Law Offices , Ukraine support Royal Haskoning in due diligence work within the frame of projects credited by EBRD and European
institutions.
Royal Haskoning is an independent, worldwide operating
consultancy firm. The firm was founded in 1881 in the Netherlands. At
present, 4300 employees combine a wide range of knowledge and experience.
Royal Haskoning offers multidisciplinary and integrated services locally,
based on experience built globally. RH says that ":.experience in working in
Ukraine learns that the language issue is the key issues to overcome in each
and any assignment..." RH has established, over the last couple of years a
useful local network of professionals working in the maritime industry".
Such staff plays a very important role in supporting the technical team in
undertaking their due diligence work. In addition RH maintains "a close
business relationship with Limited Liability Company "International Law
Offices" (ILO), who are the lead legal service provider in the country's
maritime and ports sector. ILO operate a full-fledged office in Odessa and the company is able to provide the team with all the necessary logistics
support in the country."
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| 15 july 2008 A new article of Arthur Nitsevych, partner of ILO, was published in June 2008 in the magazine PROJECT FINANCE and was dedicated to the Public-private partnership opportunities in Ukraine.
The public-private partnerships (PPP) concept has been widely spread around the world in recent years. In view of the economic upturn in Ukraine the state and municipal property in different sectors requires reconstruction, innovation, high operation and maintenance standards. Let’s review the viability of legal framework schemes to get the idea if projects may be procured.
The full text of the article is on the web-site in Articles & Publications directory.
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