Ukraine
Ukraine is a country in Eastern Europe. It is the second largest country in Europe after Russia, which borders it to the east and north-east.
Industry is the most important area of Ukraine's economy. In the current structure of Ukraine's industry a great proportion is occupied by heavy industry, especially the steel, machine-building and coal industries. A considerable part is played by the food and light industries. About two-fifth of Ukraine's people work in industry, and about a fifth work in agriculture Most other Ukrainians have jobs in such service industries as education and health care.
Ukraine has very favourable conditions for the development of agricultural production: fertile soils, temperately warm climate, a well-developed industry processing agricultural raw materials. Ukraine is one of the world's most productive farming regions and is known as the breadbasket of Europe.
The banking system of Ukraine is supervised by the National Bank of Ukraine that defines and pursues the monetary policy in Ukraine, issues the national currency and oversees its circulation, as well as regulates banks’ activities in the territory of Ukraine.
82 banks are registered in Ukraine, among which 23 banks are 100% owned by foreign investors. Bank lending is a quite expensive mechanism and loans are generally granted against collateral. The most common types of financing businesses in Ukraine are bank lending and foreign investments through capital investments and loans.
The Ukrainian authorities regularly declare their support for foreign investment, and the broader public is well disposed to it.
In general, the regulatory framework for the establishment and operation of businesses in Ukraine by foreign investors is similar to that for domestic investors (apart from the ownership of agricultural land).
As a general rule, investment permits are not required, but all enterprises must be established according to the form and procedure prescribed by law and registered with the appropriate government agencies. Foreign investors are generally not required to seek special approval for foreign directinvestments, but may register with the state authorities. Registration of a foreign investment may ease the restrictions on the remittance of dividends abroad. Unfortunately, many investors still encounter difficulties at a practical level. These do not relate specifically to the issue of foreign ownership or investment, but rather to arbitrarily enforced administrative hurdles and/or random delays.
Foreign investors are guaranteed the national treatment of investments, i.e., foreign investors have the same rights as Ukrainian ones. State support in specific industries like agriculture and renewable energy is available in the form of state subsidies as well as feed-in tariffs.
Investment permits are not required, but all enterprises must be established according to the form and procedure prescribed by Ukrainian laws and registered with the appropriate government agencies. Foreign investors are generally not required to seek special approval from authorities for foreign direct investments.
There are some restrictions for foreign investments in the publishing and broadcasting sectors, and foreigners are not allowed to participate in the manufacturing of weapons.
Also, in some cases approval from the Antimonopoly Committee of Ukraine (AMC) may be required in respect of mergers, acquisitions or the incorporation of a new company.
The anti-monopoly regulations may be subject to rapid changes, but it is important to consider the potential application of such regulations to a merger/acquisition.
Foreign investments will not be subject to nationalisation, expropriation, requisition or any other measure of similar effect, except where this is in the public interest. In such cases, compensation would be provided to the investor which reflects the market value of the property.
In compliance with the domestic regime, when doing business in Ukraine foreign citizens have the same rights and fulfil the same obligations as citizens of Ukraine, except for the cases expressly provided for by the Ukrainian legislation and international treaties. Businesses owned by the foreign citizens or non-resident companies have the same legal status as Ukrainian companies. Intellectual property is protected by the domestic legislation as well as international treaties.
Ukraine has significant economic potential as a result of its strategic location connecting Europe, Russia and Asian markets, a well-educated labour force, its large domestic market,and access to a variety of resources, including some of Europe’s best agricultural land, significant coal and some oil and gas reserves.
Establishing and operating, as well as liquidating, a business in Ukraine is governed mainly by Ukraine’s Civil Code, Commercial Code, the Business Entities Law, the Limited and Additional Liability Companies Law, and the Joint-Stock Companies Law. These laws provide for different forms of legal entities that can conduct business in Ukraine. A foreign investor may also conduct its activities in Ukraine through a representative office, which does not have the status of a separate legal entity.
The most common business structures in Ukraine are:
— Limited liability company, in which shareholders (participants) are liable for the company’s debts and liabilities only to the value of their contributions to the charter capital
— Joint-stock company, in which shares issued by the company must be registered with the National Securities and Stock Market Commission (“Securities Commission”), and shareholders are liable for the company’s debts to the extent of the par value of their shares; and
— Representative office, a place through which a foreign company carries out its activities in Ukraine (similar to a branch with the authority to act on behalf of the foreign company in Ukraine).
Intellectual property is protected by the domestic legislation as well as international treaties.
The system of courts of general jurisdiction in Ukraine is based on the principles of territoriality and specialisation. In the courts of law, civil and criminal cases are judged.
Courts of general jurisdiction are composed of local appeal, the high specialised courts and the supreme court of Ukraine. The highest judicial body in the ‘courts of law’ is the supreme court of Ukraine. The sole body of constitutional jurisdiction in Ukraine is the constitutional court of Ukraine. There are also specialised courts, such as commercial courts and administrative courts. Ukraine is a country with a developed scientific and industrial base, and is a member of the World Trade Organisation.
Our law firm VLO provides legal services for corporate and private clients in Ukraine. These services include mergers and acquisitions, business and debt restructuring, tax and tax disputes, corporate disputes, investments, bankruptcy, litigation and arbitration.
If you have questions, please us right now.
E-mail: vlolawfirm@gmail.com
Industry is the most important area of Ukraine's economy. In the current structure of Ukraine's industry a great proportion is occupied by heavy industry, especially the steel, machine-building and coal industries. A considerable part is played by the food and light industries. About two-fifth of Ukraine's people work in industry, and about a fifth work in agriculture Most other Ukrainians have jobs in such service industries as education and health care.
Ukraine has very favourable conditions for the development of agricultural production: fertile soils, temperately warm climate, a well-developed industry processing agricultural raw materials. Ukraine is one of the world's most productive farming regions and is known as the breadbasket of Europe.
The banking system of Ukraine is supervised by the National Bank of Ukraine that defines and pursues the monetary policy in Ukraine, issues the national currency and oversees its circulation, as well as regulates banks’ activities in the territory of Ukraine.
82 banks are registered in Ukraine, among which 23 banks are 100% owned by foreign investors. Bank lending is a quite expensive mechanism and loans are generally granted against collateral. The most common types of financing businesses in Ukraine are bank lending and foreign investments through capital investments and loans.
The Ukrainian authorities regularly declare their support for foreign investment, and the broader public is well disposed to it.
In general, the regulatory framework for the establishment and operation of businesses in Ukraine by foreign investors is similar to that for domestic investors (apart from the ownership of agricultural land).
As a general rule, investment permits are not required, but all enterprises must be established according to the form and procedure prescribed by law and registered with the appropriate government agencies. Foreign investors are generally not required to seek special approval for foreign directinvestments, but may register with the state authorities. Registration of a foreign investment may ease the restrictions on the remittance of dividends abroad. Unfortunately, many investors still encounter difficulties at a practical level. These do not relate specifically to the issue of foreign ownership or investment, but rather to arbitrarily enforced administrative hurdles and/or random delays.
Foreign investors are guaranteed the national treatment of investments, i.e., foreign investors have the same rights as Ukrainian ones. State support in specific industries like agriculture and renewable energy is available in the form of state subsidies as well as feed-in tariffs.
Investment permits are not required, but all enterprises must be established according to the form and procedure prescribed by Ukrainian laws and registered with the appropriate government agencies. Foreign investors are generally not required to seek special approval from authorities for foreign direct investments.
There are some restrictions for foreign investments in the publishing and broadcasting sectors, and foreigners are not allowed to participate in the manufacturing of weapons.
Also, in some cases approval from the Antimonopoly Committee of Ukraine (AMC) may be required in respect of mergers, acquisitions or the incorporation of a new company.
The anti-monopoly regulations may be subject to rapid changes, but it is important to consider the potential application of such regulations to a merger/acquisition.
Foreign investments will not be subject to nationalisation, expropriation, requisition or any other measure of similar effect, except where this is in the public interest. In such cases, compensation would be provided to the investor which reflects the market value of the property.
In compliance with the domestic regime, when doing business in Ukraine foreign citizens have the same rights and fulfil the same obligations as citizens of Ukraine, except for the cases expressly provided for by the Ukrainian legislation and international treaties. Businesses owned by the foreign citizens or non-resident companies have the same legal status as Ukrainian companies. Intellectual property is protected by the domestic legislation as well as international treaties.
Ukraine has significant economic potential as a result of its strategic location connecting Europe, Russia and Asian markets, a well-educated labour force, its large domestic market,and access to a variety of resources, including some of Europe’s best agricultural land, significant coal and some oil and gas reserves.
Establishing and operating, as well as liquidating, a business in Ukraine is governed mainly by Ukraine’s Civil Code, Commercial Code, the Business Entities Law, the Limited and Additional Liability Companies Law, and the Joint-Stock Companies Law. These laws provide for different forms of legal entities that can conduct business in Ukraine. A foreign investor may also conduct its activities in Ukraine through a representative office, which does not have the status of a separate legal entity.
The most common business structures in Ukraine are:
— Limited liability company, in which shareholders (participants) are liable for the company’s debts and liabilities only to the value of their contributions to the charter capital
— Joint-stock company, in which shares issued by the company must be registered with the National Securities and Stock Market Commission (“Securities Commission”), and shareholders are liable for the company’s debts to the extent of the par value of their shares; and
— Representative office, a place through which a foreign company carries out its activities in Ukraine (similar to a branch with the authority to act on behalf of the foreign company in Ukraine).
Intellectual property is protected by the domestic legislation as well as international treaties.
The system of courts of general jurisdiction in Ukraine is based on the principles of territoriality and specialisation. In the courts of law, civil and criminal cases are judged.
Courts of general jurisdiction are composed of local appeal, the high specialised courts and the supreme court of Ukraine. The highest judicial body in the ‘courts of law’ is the supreme court of Ukraine. The sole body of constitutional jurisdiction in Ukraine is the constitutional court of Ukraine. There are also specialised courts, such as commercial courts and administrative courts. Ukraine is a country with a developed scientific and industrial base, and is a member of the World Trade Organisation.
Our law firm VLO provides legal services for corporate and private clients in Ukraine. These services include mergers and acquisitions, business and debt restructuring, tax and tax disputes, corporate disputes, investments, bankruptcy, litigation and arbitration.
If you have questions, please us right now.
E-mail: vlolawfirm@gmail.com
