Low-income families in Ukraine will receive assistance to start their own businesses

Wednesday, May 5, 2021
Low-income families in Ukraine will receive assistance to start their own businesses

Interest-free refunds are granted once and up to 15 times the minimum wage

On April 21, 2021, the Parliament added to the Unified State кegister of тormative фcts the corresponding Resolution №397 on the conditions for granting assistance to achieve economic independence of the family, as well as its size and conditions of return. The Ordinance will enter into force on 1 January 2021.

A Ukrainian citizen registered as unemployed will receive assistance to start up his business by submitting the following documents to the employment centre:

  • Application for assistance
  • Statement of absence or criminal record
  • Business plan

On the basis of the results of the examination of the documents and the business plan, a decision is taken whether or not to provide financial assistance to a citizen wishing to start his business. In the event of a positive decision, a citizen is obliged to register a legal person or entrepreneur within 30 calendar days. The procedure may be extended to 60 days if there are compelling reasons (illness, death, care of a sick child, etc.).

Financial assistance is granted for a period of three years and may be returned both at the end of the period and throughout the period in equal installments. Deductions are made from the total amount of all taxes, common social contributions and fees paid by the citizen.

The aid is not returned in such cases:

  • The amount of all taxes, uniform social contributions and fees paid by a citizen exceeds the amount of financial assistance
  • In the first year of receiving financial assistance, fewer than two people from the recipient’s family were formally employed
  • Death of beneficiary of financial assistance

The amount of financial assistance is not included in the calculation of the average monthly income of a low-income family and does not affect the receipt of State subsidies and benefits.

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