Ukrainia

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DOING BUSINESS

 


Local business incentives - Legal forms of companies - Registration and licensing procedures - Legal framework - Foreign exchange control - Regulations concerning equity investment - FDI inflows - Expertise of the political risk

Local business incentives

As for aids and incentives for setting up a business, companies can contact the different ministries related to the company's ativity. A majority of the ministries is located in Kiev. Foreign investors may find many information on the web site : ukraine-gateway.org.

 

Legal forms of companies

Form Number of partners/shareholders Minimum and/or maximum capital Liability Registration fee Release of financial documents
Private Limited Company Minimum 3 Hryvnias 10,700. 30% must be released before the statutory shareholders meeting and the remainder within the registration year. Partners' liability is limited to the amount contributed. About Hryvnias 4.400 Yes
Public Limited Company Minimum 3 Hryvnias 21,300. 50% must be released before the statutory shareholders meeting and the remainder within the registration year. Certain decisions must be taken with majority and others with just the majority votes. About Hryvnias 4,400 Yes

Registration and licensing procedures
A new business, with foreign participation, has to be registered with the administration of the district where it will be set up.
Besides documents concerning the company setting up, for registration purposes, the foreign partner must provide a whole list of documents and notably a K-bis certificate, an Ukrainian bank's certificate garantying that the company can honour its commitments. These documents must be authenticated by a French notary, legalized by the French Ministry of Foreign Affairs, the Consulate of Ukraine in France and translated into Ukrainian.
The legal registration delay is currently 5 working days after the sending in of the whole file. The foreign investment must be registered within the 3 working days of the contribution deposit.

Foreign exchange control
The first anti-crisis measures have been, above all, focused on exchange control: suspension of pre-payments; obligation to use letters of credit for payments to non-residents; compulsory conversion of 50% of export receipts; suspension of foreign currencies interbank transactions; suspension of open positions for banks.

Regulations concerning equity investment
The legislation provides the possibility to create an Ukrainian company with foreign investments in a Private Limited Company, in a joint-stock company, or in a 100% subsidiary form, and regulates their constitution and running. Partial take-over of an existing company, notably within an undergoing privatisation programme, is subject to the same legal procedures but requires approval from the State Assets Funds.  


Foreign Direct Investment inflows in Ukrainia

FDI inflows 2003 2004 2005 World rank (*)
2005
FDI inflows (USD million) 1424 1 715 7 808 33/141
Source : UNCTAD - World Investment Report
Note : (*) World Rank = UNCTAD Inward FDI Performance Index. It is a measure of the extend to which a host country receives inward FDI relative to its economic size. It is calculated as a ratio of the country's share in global FDI inflows to its share in global GDP.

 

Last modified in 2006 - ongoing update
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