Build a Factory in Ukraine: A Guide for Investors

by Roman Cheplyk
Wednesday, March 15, 2023
Build a Factory in Ukraine: A Guide for Investors

If you’re looking for a location to build a factory, Ukraine is definitely worth considering.

Ukraine is known for its skilled workforce, favorable business environment, and strategic location. In this article, we'll guide you through the process of building a factory in Ukraine, from finding the right location to dealing with legal requirements.

1. Why Build a Factory in Ukraine?

Before we dive into the details, let's take a look at some of the reasons why Ukraine is an attractive location for investors:

  • Skilled workforce: Ukraine has a highly skilled workforce, particularly in engineering and manufacturing. The country has a long history of industrial production and is home to many technical universities.

  • Favorable business environment: Ukraine has implemented a number of reforms in recent years to improve its business environment. The country ranks 64th in the World Bank's Ease of Doing Business index and offers a number of incentives to foreign investors.

  • Strategic location: Ukraine is located at the crossroads of Europe and Asia, making it a key transit country for trade between the two regions. The country has access to several major transport corridors, including the Black Sea ports and the Dnipro River.

2. Choosing the Right Location

The first step in building a factory in Ukraine is to choose the right location. Here are some factors to consider:

  • Proximity to markets: Depending on the type of factory you're building, you may want to be close to your target market. For example, if you're manufacturing consumer goods, you may want to locate your factory near major population centers.

  • Infrastructure: Ukraine has a well-developed transportation network, but not all regions are equally well-connected. Make sure your chosen location has good road, rail, and air links.

  • Availability of land: You'll need to find a suitable plot of land for your factory. Look for areas with available land that is zoned for industrial use.

  • Labor pool: Consider the availability of skilled labor in your chosen location. Look for areas with a high concentration of technical universities and a history of industrial production.

3. Dealing with Legal Requirements

Once you've chosen a location, you'll need to deal with the legal requirements of building a factory in Ukraine. Here are some of the key steps:

  • Register your business: You'll need to register your business with the Ukrainian authorities. This typically involves obtaining a tax identification number and registering with the local tax authorities.

  • Obtain permits: Depending on the nature of your factory, you may need to obtain various permits and licenses. This may include environmental permits, building permits, and fire safety certificates.

  • Hire a local lawyer: It's a good idea to hire a local lawyer who can help you navigate the complex legal system in Ukraine. A local lawyer can help you with everything from obtaining permits to negotiating contracts with suppliers.

4. Finding Suppliers and Partners

Building a factory in Ukraine will require working with a number of suppliers and partners. Here are some tips for finding the right ones:

  • Attend trade fairs: Ukraine hosts a number of trade fairs each year that attract suppliers from around the world. Attending these fairs can be a good way to meet potential partners and suppliers.

  • Use online platforms: There are a number of online platforms that can help you connect with suppliers and partners in Ukraine. and are two examples.

  • Work with local partners: Working with a local partner can be a good way to navigate the local business environment and find reliable suppliers. Look for partners with a good track record and a strong understanding of the local market.

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