ULA - Ukrainian Logistics Alliance

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Ukraine occupies a special place in the European transit system due to its developed transport network and non-freezing ports. The length of the public railway network is 21654.7 km. The length of the network of public roads is 169,501.6 km.
The technological capacities of Ukraine's transport infrastructure are capable of transporting more than 1 billion tons of cargo annually by rail and processing more than 160 million tons of cargo in ports.
Ukraine has the highest transit rate in Europe of 3.75.
Ukraine is an ideal place for logistics between the markets of the European Union, the CIS and Asia.
Government portal
The only web portal of the executive authorities of Ukraine
Verkhovna Rada of Ukraine
Official web portal of the Parliament of Ukraine
Ministry of Economy of Ukraine
Ministry of Finance of Ukraine
Ministry of Foreign Affairs of Ukraine
State Fiscal Service of Ukraine
Office of the National Investment Council of Ukraine
Ukraine Invest
Visa rules
The order of entry, exit and stay of foreign citizens in Ukraine is under strict state control. The main goal is to protect the country from illegal migration, international terrorism and other troubles. Foreigners enter and leave Ukraine through checkpoints at the state border with a national passport and in the case of a visa, unless otherwise required by law or international treaties of Ukraine.

Citizens of many countries do not need a visa to stay up to 90 days in any 180-day period (generally no more than 180 days per year). Detailed information on the regime of entry of foreigners into Ukraine by country and visa requirements can be found on the website of the Ministry of Foreign Affairs of Ukraine, in particular at  link >>>


In December 2019, Ukraine introduced a platform for e-visas, where citizens of 52 countries can obtain visas online. There are three types of visas:

1 transit visas (type "B"). Type "B" visas are subject to issuance if each transit period does not exceed 5 days. Transit visas are issued as single, double and multiple and are valid for no more than 1 year

2 short-term visas (type "C") are subject to issuance for a period not exceeding 90 days within 180 days. Type "C" visas are issued as single, double and multiple entry visas valid for a period of 6 months to 5 years

3 long-term visas (type "D") are subject to issuance for the purpose of issuing a temporary residence permit, which gives the right to stay in Ukraine for more than 90 days. Type "D" visas are issued only as multiple-entry visas.

From 01.11.2020 Ukrainian e-Visas are issued as follows:

- urgent registration of e-Visa - 1 working day, and regular - 3 working days;
- In addition to the existing one-time e-Visa, a new type of visa has appeared: e-Visa for double entry;
- Consular fee for a single e-Visa will be $ 20. US dollars, twice - 30 dollars. USA.



Employment of foreigners
Foreign citizens residing in Ukraine legally enjoy the same employment rights as Ukrainian citizens. In order to employ a foreign citizen, the employer must obtain a work permit for foreigners issued by the employment center, except in cases where such an employee has a permanent residence permit in Ukraine.

If the employee is employed in a representative office of a foreign company, a work permit for foreigners is not required.

As a rule, a work permit for foreigners is issued for a period of 1 year. Permission for a longer period - up to 3 years, can be granted to founders of legal entities in Ukraine, IT specialists and highly paid professionals whose monthly salary exceeds 50 minimum wages set for citizens of Ukraine (300 thousand hryvnias from January 1, 2021).
Business registration
Ukraine provides a quick and easy procedure for registering a business, regardless of whether you are a Ukrainian investor or a foreign one. You can create new businesses that will be 100% owned by you; open branches and other separate divisions of your company; to acquire Ukrainian enterprises that already operate, or to create joint ventures with Ukrainian legal entities and individuals.

The constant modernization of Ukraine's corporate law brings the regulatory framework closer to world standards and provides investors with well-known and transparent tools. Ukrainian legislation provides for the creation of a wide range of internationally recognized business structures, including:
- Limited Liability Company (LLC)
- Public joint stock companies (PJSC)
- Private Joint Stock Companies (PJSC)
- Joint ventures
- Representative offices

The most popular form of business organization in Ukraine is a limited liability company (LLC), which is approximately equivalent to an LLC in the UK or a GmbH in Germany. The advantages of a limited liability company are that it is a very flexible form of business organization, the use of which requires minimal costs - the cost of law firms to develop the founding documents of a limited liability company and registration procedures in one week is less than € 100.

The main difference between PJSC and PJSC is that a public joint stock company is allowed to make public offerings with an offer that can be addressed to more than 100 individuals and / or legal entities other than the company's shareholders, and the issuer's shareholders do not have a preemptive right to purchase placed shares. Instead, PJSC is allowed to distribute its shares only through private offerings.

In addition to these types of companies, there are other types of legal entities in Ukraine, but in practice these forms are rarely used to implement investment projects.
Decisions about which structure is right for a company should be made in conjunction with a Ukrainian legal advisor.
After investors decide which type of organization best suits their goals, they will have to go through the registration procedure. The registration procedure, required documents, relevant competent authorities and deadlines vary depending on the type of company.

Ltd. can be registered online through a special web portal of the Ministry of Justice. Online and offline registration takes up to 24 hours and is free.

The founders of the JSC must also submit a package of documents to the Ministry of Justice. Prior to that, private placement of shares must be registered with the National Commission on Securities and Stock Market, which also approves the results of private placement of shares and issues certificates of ownership of shares to the founders of the JSC. The overall JSC registration process usually takes up to 3 months.

Unlike a limited liability company or a joint-stock company, a representative office is registered with the Ministry of Economic Development, Trade and Agriculture. The state fee is $ 2,500 and the registration process takes up to 60 business days. The application for registration consists of a completed application form, a document confirming the registration of the parent company and a certificate from the bank on the status of the parent company's accounts.

Licenses and permits

In Ukraine, carrying out certain types of economic activity in the field of tourism requires obtaining a license or other permit from a state-authorized body.

Subject to licensing:

- retail sale of alcoholic beverages, tobacco products, liquids used in electronic cigarettes and fuels;
- tour operator activity;
- transportation of passengers, hazardous cargo and hazardous waste by road, rail, international transportation of passengers and cargo by road;
- transportation of passengers, dangerous goods and hazardous waste by river, sea transport;
- transportation of passengers, dangerous goods and hazardous waste by air;
- gambling market activity;

For each type of activity the state has established separate license conditions, which the licensee undertakes to fulfill.
In Ukraine, it is prohibited to provide accommodation services without a certificate of establishment of the appropriate category. Hotel categories are established based on the results of voluntary certification of temporary accommodation (accommodation) services and assessment of compliance of hotels with the requirements of a certain category. Hotel appraisal work is performed in accordance with the requirements of DSTU4269: 2003 "Tourist services. Classification of hotels".

Intellectual Property

According to the Constitution of Ukraine, "everyone has the right to own, use and dispose of their property, the results of their intellectual and creative activities."

Legislation of Ukraine on protection of intellectual property rights meets the requirements of the World Trade Organization and protects:
- copyright (works in the field of science, literature and art);
- related rights (performance of a work, production of phonograms, videograms, publication of broadcasts of broadcasting organizations);
- industrial property rights (inventions, utility models, industrial designs, innovation proposals, marks for goods and services, geographical indications of origin of goods, plant varieties and animal breeds, topographies of integrated circuits, trade secrets).

Relations arising in connection with the acquisition and exercise of ownership of marks for goods and services (hereinafter - the mark) in Ukraine are governed by the Law of Ukraine "On Protection of Rights to Marks for Goods and Services" (hereinafter - the Law).

A mark is a designation that distinguishes the goods and services of one person from the same or related goods and services of others. Ownership of the mark is certified by a certificate. The Certificate of Ukraine for the Mark for Goods and Services is an official security document issued on behalf of the state by the authorized body - the Ministry of Economic Development and Trade of Ukraine.

The right to receive a certificate has any natural or legal person, association of persons or their successors. The validity of the certificate is 10 years from the date of application and is extended at the request of the certificate holder every 10 years, subject to payment of the fee, in the manner prescribed by law. The object of the mark can be any designation or any combination of designations. Such symbols may include, in particular, words, including proper names, letters, numbers, pictorial elements, colors and color combinations, as well as any combination of such symbols.

The certificate of Ukraine for a mark for goods and services gives its owner the right to use the mark, as well as the exclusive right to prohibit others from using the registered mark without his consent, the exclusive right to dispose of the right to the mark.

Requirements for the application are established by Article 7 of the Law of Ukraine "On Protection of Rights to Marks for Goods and Services" and issued on its basis 20.08.97 and registered with the Ministry of Justice of Ukraine under № 416/2220 dated 22.09.1997 (hereinafter - the Rules).
The application is submitted by a person wishing to obtain a certificate directly to the State Enterprise "Ukrainian Institute of Intellectual Property" (hereinafter - Ukrpatent) - an authorized institution of examination.

An application is a set of documents required for the issuance of a certificate. The application is drawn up in Ukrainian and must relate to one sign and contain:
- application for registration of the mark, which must indicate information about the applicant and his address;
the image of the applied sign;
- a list of goods and services for which the applicant requests registration of a mark, grouped according to the International Classification of Goods and Services for the Registration of Marks (ICCP).
If the applicant requests the protection of a color or combination of colors as a distinguishing feature of his mark, he must:
- state this and indicate in the application the color or combination of colors;
- submit color images of the mark in the application.

The application form is given in the appendix to the Rules. The fee shall be paid for the application within the time limits established by paragraph 8 of Article 7 of the Law, in accordance with the Procedure for payment of fees for actions related to protection of intellectual property rights, approved by the Cabinet of Ministers of Ukraine on December 23, 2004 further - Order). The amount of the fee for filing an application for a mark for goods and services is determined in accordance with codes 40100 and 40200 of the Annex to the Procedure on the basis of the content of the application materials received by Ukrpatent on the date of its filing.

Examination of the application is carried out in accordance with Article 10 of the Law of Ukraine "On Protection of Rights to Marks for Goods and Services" and the Rules and consists of a formal examination and qualification examination (examination on the merits). After a formal examination, during which the application is checked for compliance with the formal requirements of Article 7 of the Law and set the date of its submission, a qualifying examination of the application, during which the compliance of the claimed designation with the conditions of legal protection. The final results of the examination of the application, which is not withdrawn and is not considered as such, are reflected in the substantiated conclusion of the examination of the application, which takes effect after approval by the Ministry of Economic Development. Based on this conclusion, the Ministry of Economic Development decides to register the mark for all goods and services specified in the application or to refuse to register the mark for all goods and services specified in the application, or to register the mark for some of the goods and services specified in the application. for the rest of the goods and services specified in the application. The decision on the application is sent to the applicant.

On the basis of the decision on registration of the mark for goods and services and in the presence of a document on payment of state duty for issuance of a certificate and fee for publication on its issuance, information on issuance of a certificate. These duties and fees shall be paid upon receipt by the applicant of the decision to register the mark. Simultaneously with the publication of information on the issuance of the certificate, the Ministry of Economic Development carries out the state registration of the mark, for which it enters the relevant information into the State Register of Certificates of Ukraine for Marks for Goods and Services.
Public-private partnership
Concession
The legal framework of Ukraine for public-private projects is regulated by the Law of Ukraine "On Concession", adopted in 2019 and developed in accordance with best international practices.
According to the new procedure, the concession can be initiated by public authorities, state-owned enterprises and investors themselves. To initiate a concession tender, potential investors must submit a concession proposal, including a concept note and feasibility study prepared in accordance with the methodology for analyzing the effectiveness of public-private partnerships, to the asset management body.

Privatization
Legislation governing privatization in Ukraine - the Law of Ukraine "On Privatization of State and Municipal Property" and the Cabinet of Ministers of Ukraine dated 10.05.2018 № 432 "On approval of the Procedure for electronic auctions for the sale of small privatization objects." Privatization is the paid alienation of state-owned property for the benefit of individuals or legal entities.

The main purpose of privatization:
- Attracting direct investments and investors, both from Ukraine and from other countries.
- Attracting additional revenues to the budget both from sales and, subsequently, from tax revenues from business.
- Improving the performance of enterprises or the quality of property use through the search for an effective owner.
- Modernization of production or re-profiling of facilities and creation of new jobs.

The following are not privatized in Ukraine:
- Enterprises that ensure the security of the state.
- Enterprises that are natural monopolies.
- Enterprises that are important to society or whose services / goods cannot be performed by private business.

Advantages for investors:
- transparency and availability of information on all assets available for privatization, as well as procedures involving open bidding through an online platform and the participation of independent experts;
- the opportunity to enter into a contract of sale under English law.
All assets available for privatization are listed in the online catalog and are divided into two groups:
- small (cost less than UAH 250 million), they can be purchased through the online platform ProZorro.Sales, which provides the highest level of transparency of the privatization procedure;
- large ones (worth more than UAH 250 million) are sold with the help of independent professional advisers who are preparing the asset for privatization and are looking for potential investors for the auction.

All the necessary information about privatization can be found on the website of the State Property Fund of Ukraine link >>>

Antitrust control
Ukraine is a country of market economy. It is competition - the free competition of entrepreneurs in order to gain advantages over others through their own achievements - that creates a number of important conditions for the successful development of society. In the economic sphere, competition is a prerequisite for the optimal distribution of limited public resources, their most efficient use by each individual producer, a prerequisite for scientific and technological progress. Ukrainian legislation on the protection of economic competition provides for special legal mechanisms aimed at preventing anti-competitive concerted actions of entrepreneurs, anti-competitive actions of government agencies, monopolization of commodity markets.

The basis of these mechanisms are three types of control exercised by the Antimonopoly Committee of Ukraine:
- control over the concerted actions of business entities, the purpose of which is to prevent anti-competitive collusion of entrepreneurs;
- control over the concentration of economic entities, designed to prevent the emergence of monopolies in the market in the event of mergers or acquisitions, creation of new enterprises, acquisition of corporate rights or acquisition of control of one entity over another in any way;
- control over anti-competitive actions of executive bodies, local self-government bodies, administrative and economic management and control bodies.

Therefore, investors who plan to concentrate economic entities in Ukraine need to obtain permission from the Antimonopoly Committee of Ukraine.
Taxation
All taxes and fees, rates, benefits, rules, as well as the procedure and mechanisms for assessing and paying taxes are defined in the Tax Code of Ukraine. The taxation system consists of national and local taxes and fees. The key payments for most businesses that are in the general taxation system are:

1. Corporate income tax
Resident economic entities, foreign legal entities that receive income from a source of origin from Ukraine and permanent representative offices of foreign enterprises must pay a tax of 18%. Such tax is determined in accordance with the financial statements of the enterprise in accordance with national accounting regulations or international financial reporting standards. The foreign organization is responsible for paying tax on all income originating in Ukraine, including interest, dividends and royalties.

According to the Tax Code of Ukraine, income received by a non-resident with a source of origin from Ukraine may be subject to a special tax of 15%. The tax is withheld by a resident or a permanent establishment of a foreign entity from the amount of any income with its source of origin in Ukraine, unless otherwise provided by a valid bilateral agreement on the avoidance of double taxation. Ukraine has concluded more than 70 bilateral double taxation agreements.

2. Value added tax (VAT)
The sale of goods (services) within the customs territory of Ukraine, the import of goods into the customs territory of Ukraine and the export of goods outside the customs territory of Ukraine are subject to VAT. The basic VAT rate is 20% of the contract value of the relevant goods (services).

3. Land tax
Tax levied on legal entities and individuals for the use of land. Payment for land by land users is 0.1–12% of the normative monetary value of the used land plot (established by the local self-government body).

4. Labor tax
The general rate of personal income tax (PIT), which applies to almost all income received by a resident individual in Ukraine, is 18%.

An additional military tax of 1.5% is levied on income subject to personal income tax.

Employers are also required to pay a single contribution to the compulsory state social insurance of employees in the amount of 22% to the State Pension Fund.

The maximum base for accrual of SDRs is 15 times the minimum wage - from January 1 to November 30 - 90,000 (6,000 UAH * 15), from 1 to 31 December - 97,500 (6,500 UAH * 15).
In addition to the general system of taxation, Ukraine also has a simplified system of taxation, according to which companies pay a single tax, which is:
- 3% of the amount of income - in the case of VAT;
- 5% of the amount of income - if the company is not a VAT payer.

Customs regulation

Favorable geographical position of Ukraine on the main traffic flows, access to the sea, the presence of a developed network of roads and railways, increased attention in recent years Ukraine has paid to the development, improvement and alignment of its legislation on state customs in accordance with international agreements and conventions , provides us with all the necessary prerequisites to occupy a prominent place among the major trading and transit countries in the world.

Principles of state customs, in particular, procedures of customs control and customs clearance of goods moving across the customs border of Ukraine, customs regimes and conditions of their application, prohibitions and / or restrictions on import into Ukraine, export from Ukraine and movement through Ukraine in transit of certain species goods are determined by the Customs Code and other laws of Ukraine. Customs clearance of goods can be carried out at any customs office, regardless of the place of registration of the importer. The business entity must be accredited by local customs authorities to carry out import-export operations. The main document required for customs clearance of goods is a customs declaration submitted by an importer or customs broker.

Importers may declare the goods before the goods enter the customs territory of Ukraine or before the goods are delivered to the places of customs clearance by submitting a preliminary customs declaration. Imports of goods into the customs territory of Ukraine are subject to VAT at a rate of 20%.

Accounting
The issue of accounting in Ukraine is regulated by the Law of Ukraine "On Accounting and Financial Reporting in Ukraine", provisions (standards) of accounting, developed on the basis of International Financial Reporting Standards and European Union legislation in the field of accounting.
The accountant is responsible for keeping records at the enterprise, and the director, as the authorized person of the owner, is responsible for the organization of accounting. Enterprises in Ukraine have the right to entrust accounting not only to their own staff, but also to external contractors on a contractual basis. Such services for start-ups with a small volume of operations usually cost around € 100 per month.
Banking operations
The National Bank of Ukraine pursues a monetary policy in order to ensure the stability of the currency of Ukraine, regulates currency, and establishes rules for conducting banking operations.

The Ukrainian national currency, the hryvnia, is the only legal tender in Ukraine that is accepted without any restrictions. Transactions with foreign investments in Ukraine and repatriation of dividends and other investment income are included in the list of transactions allowed in foreign currency. Transactions between Ukrainian citizens and foreign citizens can be carried out both in hryvnia and in foreign currency.

Payments on the territory of Ukraine can be made both in cash and in non-cash forms. To conduct business, enterprises operating in Ukraine open accounts in hryvnias and foreign currency in banks, which in turn have correspondent accounts with the National Bank of Ukraine and other banks in Ukraine and abroad, conducting financial transactions using the BankID system of the National Bank. Ukraine and the International Money Transfer System SWIFT. Tariffs for sending SWIFT payments average 0.5% of the amount. International payment systems Visa, MasterCard, American Express, Western Union, MoneyGram, INTELEXPRESS, HAZRY, RIA, Sigue Money Transfer, MEEST operate on the territory of Ukraine; innovative Apple Pay and Google Pay services;

National payment system "Ukrainian payment space", as well as electronic payment systems for payment transactions on the Internet. 8.5 thousand bank branches together with a network of 279.0 thousand trade payment terminals and almost 20 thousand ATMs create extremely convenient conditions for conducting financial transactions throughout Ukraine.

In recent years, Ukraine has taken a decisive step towards liberal regulation of currency rules and adopted in 2019 the Law of Ukraine "On Currency and Foreign Exchange Transactions". The basic principle is the admission of any cross-border payments, the purchase of foreign currency or the exchange of currency, except in cases of direct restriction in accordance with the law. Non-residents enjoy the same rights with respect to foreign exchange transactions.
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