Doing Business in Ukraine in 2021

Thursday, March 25, 2021
1 MIN
Doing Business in Ukraine in 2021

Things you should learn about when it comes to doing business in Ukraine 2021.

Are you in Ukraine doing business or planning to do so in the near future? Then you are making a great decision, as Ukraine is slowly but surely becoming an attractive location to invest in for foreign businesses. While it has slight challenges, the area has a great geographical location, being the largest territory in Europe rich in natural resources with a skilled yet low-cost workforce.

However, doing business in Ukraine isn’t done in a snap. There are things you should learn about when it comes to doing business in Ukraine 2021. Here is a quick guide to follow.

Starting a Company

For those starting a company, you can find various business structures you can take on when doing business in Ukraine. The most suited one for small and mid-sized businesses is the Limited Liability Company, with both resident and non-resident foreign nationals free to incorporate this business structure. Furthermore, they can also be 100% shareholders of said business.

When you open an LLC, here are points to consider and remember:

  • When incorporating a company in Ukraine, the process is pretty simple. You can finish it within 2 working days, so long as you have all the required documents prepared beforehand.
  • Before registering an LLC, foreign shareholders should get a Ukrainian tax number.
  • The LLC’s director should have the right to reside in Ukraine, either being a citizen of the country, a permanent citizen, or a foreign individual with a work and residence permit for the area. Corporate directors aren’t allowed.
  • Ukrainian companies need to have a local registered address.
  • Foreigners who want to relocate to Ukraine, so they can operate the business should apply for a relocation visa, which is a work and residence permit. This is still subject to approval from appropriate authorities.

Paying for Investments

You may have noticed more US companies doing business in Ukraine, investing in its natural resources and strategic location. If you are planning to pay for investments for opening companies, buying real-estate, among other business investments, there are two ways to do so.

  • One may pay directly from their bank account overseas, with the payment made in their account's currency.

An investment bank account in Ukraine can be opened as well to pay for investments. The foreign national will need to transfer money in their foreign currency to the investment bank account, converting it to Ukraine’s local currency, which is the hryvnia (UAH). They will then pay for the investment using local currency.

Wrapping It Up

Many can feel the ease of doing business in Ukraine because of its emerging market that allows both citizens and foreigners to start companies. Now, the process of registering and doing business in 2021 in Ukraine is simplified, taking mere days to do so, as long as you are prepared.

That’s why make sure that you are aware of what documents and requirements you need to have a smooth application and registration process. Good luck and reap the benefits of doing business with Ukraine now; contact us here at GT Invest for more details, and we can get you started on your new investment.

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