Why set up a business in Ukraine and what to take into account
Ukraine is an emerging investment hub. It is an emerging market and provides expanding businesses with strategic positioning in the heart of Europe – with good connections to Russia and the Middle East. 40% of its export consists of metal and agriculture products. Ukraine is mainly importing mineral fuel, petroleum and petroleum distillation products, machines and equipment, and chemicals.
The current political situation has created new opportunities for doing business in Ukraine because of its progressive approach to Europe and the implementation of important reforms aimed at turning the country into a free economy.
In 2020, the country climbed five more places in the World Bank’s Ease of Doing Business ratings, to 64 out of 190 countries, and the Bank rates Ukraine second among the countries of the world in the last 10 years regarding the speed and depth in the improvement of the business climate. Between 2015-2019, Ukraine witnessed foreign direct investment flows of $16 billion, resulting in the construction of over 100 manufacturing plants, representing tens of thousands of new high-added-value jobs. These include a $200 million state-of-the-art seed processing facility by Bayer from Germany, a $150 million grain terminal by Cargill from the US, a second $16 million manufacturing site by US-based Jabil, and the arrival of such global brands as General Electric, Ryanair, HEAD, IKEA, H&M, Decathlon, and many others.
What are the advantages of setting up a business in Ukraine?
The huge potential of human resources, especially in the technical areas
Low level of competition
Simplified system of taxation
Minimal rates of taxation
The procedure for the registration of a legal entity has been simplified and now takes only a few days
Easy procedure of getting a loan
Streamlined contracts enforcement procedures
What to take into account when starting a business in Ukraine?
Bureaucracy, which is best handled by a professional with sound knowledge of the relevant procedures.
Ukrainian law does not allow investors to set up a partnership in the country or convert a representative office into a company.
Complicated and costly procedures of obtaining construction permits and property registration.
Requirements for export.