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Home Fashion

Is it safe to invest in Ukraine?

by Jason Robin
October 11, 2021
in Fashion
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Is it safe to invest in Ukraine?
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Ukraine is attempting to entice overseas direct investments into the country. Several roadshows Optimization of business processes in Ukraine promoting the desirability of investing in Ukraine are being held in various countries and promoted in the columns of a few of the world’s most prestigious publications and magazines.

How do you characterize Ukraine’s investment environment? Which industries have the most potential?

Despite the tough economic scenario Business registration in Ukraine, Ukraine’s financial market is excellent. After 2014, Ukrainian administrations have worked hard to develop the country and make it more appealing to foreign investors. The law has been updated to meet EU requirements. The process of forming a business is simple and requires just a few days. Although the tax levels have stayed constant for many years, the underlying laws have been modified each year. The tax office operates in a more precise and efficient manner. As a consequence of all this, investor sentiment in Ukraine has risen year after year after 2014. Additionally, the following sectors have a lot of potentials:

  • Food industry
  • Agribusiness
  • Light industry
  • IT sector
  • Automobile supply industry

What seems to be the process for putting the capital projects into action?

The owner must send a request and accompanying papers to the state and local self-government agencies to seek funding for an eligible investment plan. If the capital proposal is accepted, the Council of Ministers of Ukraine and the city authority must sign an agreement mentioning the terms of service as well as the process for implementing the project. Just an owner with a corporate business established in Ukraine is eligible to sign the memorandum of understanding. When a foreign buyer wants to carry out the capital projects, it must form a corporate structure in Ukraine that owns 100 percent of the involvement rights (shares). The administration will have 3 to 6 months to review the request and reach an agreement.

Establishing a Limited Liability Company within Ukraine

Of all the ways to finance in Ukraine, this seems to be arguably the most complicated. However, it’s really the safest and most secure way to invest in Ukraine. Establishing a limited liability company (LLC) in Ukraine is usually a two-step process. During the preliminary phase, you need to contact a global business professional operating in Ukraine to create the Articles of Organization and perform the assigned papers. In Ukraine, creating a business usually takes only one or two nights, after which the owners can register for a tax account or begin conducting company with contractors.

What will Ukraine’s future hold? Will it be safe?

It’s hard to predict how Ukraine’s geopolitical or economic situation will evolve in the coming years. Ukraine must continue to collaborate with global funders, including the World Bank or the International Monetary Fund, and also the EU. The speedy eradication of the corona epidemic, like in other nations, is equally critical. The climate for business will keep improving. The Ukrainian government recognizes the importance of global investors in the country’s economic development. Efforts are always being undertaken in Ukraine to develop a favorable investment environment.

Jason Robin

Jason Robin

Jason is a professional blogger and marketer, who frequently writes about custom packaging, technologies, news and health to help businesses understand and adapt new ways to reach and inspire their target audience.

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