Ukraine provides many opportunities for entrepreneurs and companies to invest in various fields in the country. The favourable geographic location, reserves of natural resources, skilled workforce, close ties with the west, and excelling industries like the popular textile industry of Ukraine, attract a number of investors. There are several ways to invest in Ukraine.
Tips for Investing in Ukraine
Investing in Ukraine is an excellent opportunity. However, for a foreigner, it can be a complex task involving multiple risks. For this reason, it is highly recommended to follow specific tips and guidelines for investing and doing business in Ukraine.
Opening Personal Bank Accounts
Foreigners can open specific types of bank accounts in Ukraine. One option includes regular current and savings accounts. These accounts are opened in local currencies and some foreign currencies. Another option is to open an investment account. This allows foreigners to invest in Ukraine and send the profits back home. Opening an investment account is necessary before taking up other sorts of investment opportunities in the country. After opening bank accounts, it is essential to keep each type of account’s rules in mind. These rules are strictly regulated and are different for different types of accounts. For example, cash withdrawal is allowed by a regular current account but not by an investment account.
Investing in Real-Estate
The prices in the current Ukrainian real-estate markets are pretty attractive. Thus, foreign investors are inclined to buy properties in Ukraine. However, Ukraine’s real estate market is tricky and risky. It demands caution and careful dealing at every step of the transaction. It is highly essential to work with a well-informed and reliable legal advisor. The language barrier can also affect the bargaining process. A local business consultant can guide you through the negotiation process. One should also hire a local attorney to run standard register checks. All the payments and deals must be carried out strictly in accordance with the Ukrainian banking and investment law.
Trading on Ukraine’s Emerging Stock Market
You can invest in the stocks in Ukraine from the comfort of your home. Investing in stocks can be done online. You don’t have to be present in Ukraine for this investment. However, the different time zones must be kept in mind. For beneficial stock investments, you should be aware of the time of trading sessions in Ukraine and the corresponding time in your country.
Starting a Company in Ukraine
You can invest in Ukraine by setting up a limited liability company (LLC). It is most suitable for small to mid-sized businesses in Ukraine. Both the resident and non-resident foreigners can set up an LLC. They can be 100% shareholders of their company. Setting up the company requires specific steps to be followed. First, necessary documents like a work permit are needed to incorporate the company. After the submission of required documents, the incorporating process can be completed in 1-2 days. Foreign shareholders must obtain a Ukrainian tax number before the registration of an LLC. After the incorporation of the company, you can efficiently begin your business with local contractors.
Being Aware of Tax Rates
Before investing and doing business in Ukraine, you should know the tax rates on certain types of incomes and transactions. The tax rates depend on the income of the taxpayer and the type of the taxpayer. Some transactions are exempted from taxations. Therefore, professional advice is necessary to know about the applicable tax for your scenario. Some of the taxes include corporate tax, social security tax, individual income tax, etc. You should see the tax rates that are applicable in your case. This is necessary so that you do not unknowingly commit any tax fraud.