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Doing Business with Ukraine

A comprehensive guide to doing business, exporting, investing, and manufacturing in Ukraine.

Foreign Direct Investment with the International Trade Council / Company Incorporation / Company Formation

Ukraine Invest

Tel: +38 98 567 88 99
Email: info@ukraineinvest.gov.ua
Web: www.ukraineinvest.gov.ua

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State Customs Service of Ukraine

Tel: +380 44 247 27 24
Email: post@customs.gov.ua
Web: www.customs.gov.ua

National Chamber of Commerce

Ukrainian Chamber of Commerce and Industry

Tel: +380 44 584 28 24
Email: ucci@ucci.org.ua
Web: www.ucci.org.ua

Ministry of Economy Information from the International Trade Council - a Peak-body - international chamber of commerce

Ministry of Economy of Ukraine

Tel: +38 44 200 47 53
Email: meconomy@me.gov.ua
Web: www.me.gov.ua

Basic Statistics about Ukraine

  • Type of Government: Unitary Semi-Presidential Republic
  • Population: ~36.7 million (as of 2023, excluding Crimea and parts of Donetsk and Luhansk)
  • GDP: ~$160 billion USD (nominal, 2022 estimate)
  • Corporate Tax Rate: 18%
  • Personal Income Tax Rate: 18% (flat rate)
  • Major Exports: Grain (especially wheat and corn), sunflower oil, iron and steel, chemicals, machinery
  • Major Imports: Machinery, vehicles, chemicals, fuel, pharmaceuticals

Exporting to Ukraine

Exporting to Ukraine requires adherence to certain regulations and processes to ensure compliance with both Ukrainian and international trade laws. This guide outlines the essential steps for exporting goods to Ukraine, as well as key contacts in relevant government and trade agencies.

1. Ensure Product Compliance with Ukrainian Regulations

Before exporting, it’s important to ensure that your product complies with Ukrainian standards and regulations, which may differ from those in your home country. This includes checking the requirements for:

  • Product Certification: Many products must meet Ukrainian quality, safety, and technical standards, which could require obtaining certifications such as the UkrSEPRO certificate or compliance with Ukrainian Technical Regulations.
  • Labeling: Products may need labeling in Ukrainian language, particularly for food, pharmaceuticals, and consumer goods.
  • Sanitary and Phytosanitary (SPS) Measures: Agricultural products, foodstuffs, and plant-based goods must meet the State Service of Ukraine on Food Safety and Consumer Protection standards.
  • Key Contacts:

2. Obtain an Export License (if required)

Depending on the type of goods you are exporting, you may require an export license from your home country or Ukraine. Items such as military goods, dual-use items, and certain chemicals are subject to export controls.

  • How to Proceed:
    • Check whether your product is subject to export controls under Ukrainian law or international agreements (such as the Wassenaar Arrangement for dual-use goods).
    • Apply for an export license through your country’s export control authority, if necessary.
  • Key Contact:

3. Determine the Correct Harmonized System (HS) Code

Each product being exported to Ukraine must be classified under a Harmonized System (HS) Code, which is used globally to identify and classify traded goods. The HS code determines the applicable customs duties and tax rates.

  • How to Proceed:
    • Identify the correct HS code for your product by consulting the World Customs Organization (WCO) or your country’s customs authority.
    • Ensure that the HS code you use on all documents matches the classification used by Ukrainian Customs.
  • Key Contact:

4. Prepare Export Documentation

Comprehensive documentation is essential to ensure the smooth customs clearance of goods in Ukraine. The following documents are typically required:

  • Commercial Invoice: Must include the description of goods, value, HS code, and buyer/seller details.
  • Packing List: Details the contents of each package, including weight, dimensions, and quantity.
  • Certificate of Origin: May be required to prove the origin of the goods, especially for goods eligible for preferential tariffs under trade agreements.
  • Bill of Lading: Acts as a receipt and contract for the shipment of goods.
  • Customs Declaration: Must be filled out according to Ukrainian customs regulations, including the HS code and value of goods.
  • How to Proceed:
    • Work with a freight forwarder or customs broker to ensure all documents are prepared correctly and submitted to Ukrainian customs.
    • Ensure your documents comply with the Unified Automated Information System used by Ukrainian customs.
  • Key Contact:

5. Determine Applicable Import Duties and Taxes

Ukraine applies import duties and Value Added Tax (VAT) on most imported products. The amount of duty depends on the product’s HS code, while the VAT rate is generally 20%.

  • How to Proceed:
    • Calculate the applicable customs duties for your product based on its HS code and the Ukrainian Customs Tariff.
    • The standard VAT rate is 20%, but some goods (e.g., medical equipment) may qualify for a reduced rate or exemption.
  • Key Contact:

6. Arrange Shipping and Logistics

Shipping logistics play a critical role in exporting goods to Ukraine. You must ensure that your goods are shipped using the appropriate transport mode (air, sea, or land) and that they comply with Ukrainian import regulations.

  • How to Proceed:
    • Select a reliable shipping carrier or freight forwarder with experience in Ukrainian imports.
    • Ensure your goods are insured and that all shipping documents (Bill of Lading, Airway Bill, etc.) are prepared correctly.
  • Key Contact:

7. Customs Clearance and Payment of Duties

Once the goods arrive in Ukraine, they must go through customs clearance. Ukrainian customs authorities will inspect the goods, verify the documentation, and calculate any applicable duties and taxes.

  • How to Proceed:
    • Submit all required documentation to the State Customs Service of Ukraine for inspection and clearance.
    • Pay any applicable import duties, VAT, and other taxes before the goods are released.
  • Key Contact:

8. Compliance with Trade Agreements (if applicable)

Ukraine is a member of several trade agreements, including the Deep and Comprehensive Free Trade Area (DCFTA) with the European Union. These agreements may provide preferential tariffs or duty exemptions for certain goods. Ensure that your product qualifies for any applicable trade preferences.

  • How to Proceed:
    • Verify whether your product qualifies for preferential treatment under Ukraine’s trade agreements.
    • Submit the necessary documentation (such as a Certificate of Origin) to benefit from reduced tariffs.
  • Key Contact:

9. Understand Sanctions and Trade Restrictions

As a result of ongoing geopolitical tensions, certain goods may be subject to sanctions or trade restrictions when exporting to Ukraine. This is particularly relevant for goods originating from or destined for regions under international sanctions.

  • How to Proceed:
    • Check the latest sanctions and trade restrictions imposed by the European Union, United States, or United Nations that could affect your exports to Ukraine.
    • Ensure your products do not violate any export restrictions or sanctions, especially if they involve controlled items such as military goods or dual-use technologies.
  • Key Contact:

10. Post-Clearance Compliance and Record Keeping

After completing the export process, it is important to maintain accurate records of your export transactions for auditing and tax purposes. Ukrainian customs authorities may request documentation for up to three years after the goods have cleared customs.

  • How to Proceed:
    • Keep copies of all export documentation, including invoices, shipping documents, customs declarations, and payment receipts.
    • Monitor compliance with Ukrainian regulations to avoid penalties or fines for non-compliance.

Key Contacts for Exporting to Ukraine

  1. Ministry of Economy of Ukraine
    Website: https://me.gov.ua
    Responsible for trade policy, export promotion, and economic development.
  2. State Customs Service of Ukraine
    Website: https://customs.gov.ua
    Handles customs regulations, import duties, and customs clearance.
  3. State Service of Ukraine on Food Safety and Consumer Protection
    Website: https://dpss.gov.ua
    Regulates food safety, plant health, and agricultural imports.
  4. State Export Control Service of Ukraine
    Website: https://www.dsecu.gov.ua
    Oversees export controls and licensing for controlled goods.
  5. Ukrainian Sea Ports Authority
    Website: https://www.uspa.gov.ua
    Manages Ukraine’s seaports and maritime trade logistics.

Importing to Ukraine

Importing goods into Ukraine requires compliance with a structured process governed by Ukrainian customs and trade laws. Below are the essential steps you need to follow to ensure a smooth and legal importation of goods into Ukraine. This guide also includes key contacts in relevant government and trade agencies that can provide assistance.

1. Determine the Correct Harmonized System (HS) Code

The first step in importing goods into Ukraine is determining the correct Harmonized System (HS) Code for your products. The HS code is used to classify goods and determine the applicable customs duties, taxes, and regulations.

  • How to Proceed:
    • Visit the World Customs Organization (WCO) or consult the Ukrainian Customs Tariff to identify the appropriate HS code for your product.
    • Ensure that the HS code you use on all documentation matches the classification used by Ukrainian Customs.
  • Key Contact:

2. Check Import Restrictions and Licensing Requirements

Certain goods may require an import license or be subject to import restrictions in Ukraine. For example, products such as pharmaceuticals, chemicals, foodstuffs, and dual-use items may need special permits or undergo additional inspections.

  • How to Proceed:
    • Check if your product is subject to any import restrictions or requires an import license under Ukrainian law.
    • Apply for an import license through the relevant government agency, if necessary.
  • Key Contacts:

3. Verify Product Compliance with Ukrainian Standards

Products imported into Ukraine must comply with Ukrainian technical standards and quality control regulations. This may involve obtaining product certification or passing sanitary and phytosanitary (SPS) inspections, especially for food, agricultural products, and pharmaceuticals.

  • How to Proceed:
    • Ensure your product complies with Ukrainian Technical Regulations and standards. You may need to obtain certification from accredited agencies in Ukraine, such as the Ukrainian Scientific Research and Training Center for Standardization, Certification, and Quality (UkrSEPRO).
    • For agricultural and food products, ensure compliance with sanitary and phytosanitary (SPS) requirements.
  • Key Contacts:

4. Prepare Import Documentation

Accurate and complete documentation is critical for the customs clearance process. The typical documents required for importing goods into Ukraine include:

  • Commercial Invoice: Details the description, quantity, and value of the goods, as well as the buyer and seller information.
  • Packing List: Provides detailed information about the contents of each package, including weight, dimensions, and quantity.
  • Certificate of Origin: May be required to verify the origin of the goods, particularly when preferential tariffs apply under trade agreements.
  • Bill of Lading or Airway Bill: Serves as proof of shipment and receipt of the goods.
  • Customs Declaration: Prepared in accordance with Ukrainian customs requirements, stating the HS code, value of the goods, and other relevant details.
  • How to Proceed:
    • Work with a customs broker or freight forwarder to ensure all required documents are properly prepared and submitted to Ukrainian customs authorities.
    • Use Ukraine’s Unified Automated Information System to submit and track customs documentation electronically.
  • Key Contact:

5. Calculate Import Duties, VAT, and Other Taxes

Imported goods are subject to customs duties, Value Added Tax (VAT), and potentially excise duties. These taxes and duties are calculated based on the product’s HS code, customs value, and type of goods.

  • How to Proceed:
    • Calculate the customs duties for your product based on its HS code. Import duties typically range from 0% to 10%, depending on the product category.
    • Calculate VAT, which is generally 20% of the declared customs value plus applicable duties. Some goods may be subject to reduced VAT rates or be VAT-exempt.
    • If applicable, calculate excise tax for goods such as alcohol, tobacco, and fuel.
  • Key Contact:

6. Arrange Transportation and Shipping

Choosing the right transport mode (air, sea, or land) and ensuring that your goods are shipped according to Ukrainian import regulations is crucial for timely delivery.

  • How to Proceed:
    • Work with a reliable freight forwarder or logistics provider who has experience in shipping to Ukraine.
    • Ensure that all shipping documents, such as the Bill of Lading or Airway Bill, are prepared correctly and that the goods are properly insured.
  • Key Contact:

7. Customs Clearance and Payment of Duties

Once the goods arrive in Ukraine, they must go through customs clearance. Ukrainian customs will inspect the goods, verify the submitted documentation, and calculate the applicable duties and taxes.

  • How to Proceed:
    • Submit all required documentation to the State Customs Service of Ukraine for inspection and clearance.
    • Pay the applicable import duties, VAT, and any other relevant taxes before the goods are released.
    • Follow up with your customs broker to ensure that any discrepancies or delays are resolved promptly.
  • Key Contact:

8. Post-Clearance Compliance and Record Keeping

After customs clearance, it is important to maintain accurate records of your import transactions. Ukrainian customs authorities may audit your imports and request documentation for up to three years after the goods have cleared customs.

  • How to Proceed:
    • Keep records of all import documents, including invoices, shipping documents, customs declarations, and payment receipts.
    • Ensure compliance with post-clearance obligations, such as reporting to government agencies or resolving any outstanding customs issues.
  • Key Contact:

9. Comply with Trade Agreements and Preferential Tariffs (if applicable)

Ukraine is a party to several trade agreements, including the Deep and Comprehensive Free Trade Area (DCFTA) with the European Union and agreements with the World Trade Organization (WTO). These agreements may allow for preferential tariffs or duty exemptions on certain products.

  • How to Proceed:
    • Check if your imported goods qualify for preferential treatment under any trade agreements.
    • Submit a valid Certificate of Origin to claim any applicable tariff reductions.
  • Key Contact:

10. Understand Sanctions and Trade Restrictions

As a result of ongoing geopolitical tensions and international sanctions, certain goods may be subject to sanctions or trade restrictions when importing into Ukraine. This is particularly relevant for goods originating from regions under international sanctions or involving dual-use technologies.

  • How to Proceed:
    • Ensure your product does not violate any import restrictions or sanctions imposed by the European Union, United States, or United Nations.
    • Comply with any export control laws, especially if your goods are classified as controlled items, such as military goods or dual-use technologies.
  • Key Contact:

Key Contacts for Importing Goods into Ukraine

  1. State Customs Service of Ukraine
    Website: https://customs.gov.ua
    Responsible for customs regulations, import duties, and clearance.
  2. Ministry of Economy of Ukraine
    Website: https://me.gov.ua
    Oversees trade policy and economic development.
  3. State Service of Ukraine on Food Safety and Consumer Protection
    Website: https://dpss.gov.ua
    Regulates food safety, agricultural imports, and consumer protection.
  4. UkrSEPRO Certification System
    Website: https://www.ukrsepro.com
    Provides certification services for product standards.
  5. Ukrainian Sea Ports Authority
    Website: https://www.uspa.gov.ua
    Manages Ukraine’s seaports and maritime logistics.
  6. Ukrainian Railways (Ukrzaliznytsia)
    Website: https://www.uz.gov.ua
    Oversees rail transport and logistics in Ukraine.
  7. State Export Control Service of Ukraine
    Website: https://www.dsecu.gov.ua
    Regulates export control and sanctions compliance.

Investing / Incorporating in Ukraine

Incorporating a company in Ukraine involves navigating legal, regulatory, and administrative procedures. Ukraine offers several types of company structures, with the Limited Liability Company (LLC) being the most popular for both foreign and domestic investors due to its flexibility and limited liability for shareholders. This guide outlines the essential steps to incorporate an LLC in Ukraine, including any associated costs and key contacts in government or related agencies.

1. Choose the Legal Structure of the Company

Before incorporating, you need to select the appropriate legal structure for your business. In Ukraine, the most common types of business entities are:

  • Limited Liability Company (LLC) (ТОВ – Товариство з обмеженою відповідальністю)
  • Private Joint Stock Company (PJSC)
  • Representative Office (for foreign companies)

For most foreign investors, an LLC is the preferred option due to its simplicity and flexibility.

  • Cost: No specific registration fees for choosing a legal structure.
  • Key Contact:

2. Prepare and Submit the Company Charter

The Company Charter (Statut) is the founding document of your business and outlines important details like the company’s name, objectives, share capital, governance structure, and operational rules. This document must be prepared in Ukrainian language and signed by all founders.

  • How to Proceed:
    • Draft the Company Charter in compliance with Ukrainian law. It should include:
      • Company name (must be unique and registered)
      • Legal address in Ukraine
      • Objectives and scope of business activities
      • Governance rules (e.g., board composition, shareholder meetings)
      • Information on share capital and ownership structure
    • Obtain notarized signatures for the document.
  • Cost: Notary fees for document certification range from UAH 1,000 to UAH 2,500 (~$30–$70 USD), depending on the notary and complexity.
  • Key Contact:

3. Register the Company with the State Registrar

To legally incorporate, you must register your company with the State Registrar via the Unified State Register of Legal Entities, Individual Entrepreneurs, and Public Organizations (USR). This step establishes your business as a legal entity.

  • How to Proceed:
    • Submit the following documents:
      • Application for company registration
      • Company Charter
      • Proof of registered legal address
      • Information on the founders (passport and tax identification numbers)
    • You can apply either in person at the local registration office, online via the Diia Portal, or through a notary.
    • Upon successful registration, your company will receive a tax identification number and be entered into the Unified State Register.
  • Cost:
    • No state fees for LLC registration (if submitted online).
    • UAH 1,700–3,400 (~$50–$100 USD) for notary services, if using a notary to submit documents.
  • Key Contact:

4. Obtain a Tax Identification Number (TIN)

All legal entities in Ukraine must obtain a Tax Identification Number (TIN) from the State Tax Service. This number will be used for all tax filings and official communications with the tax authorities.

  • How to Proceed:
    • Upon company registration, you will automatically be assigned a TIN for your legal entity. No additional steps are required if you register through the Unified State Register.
    • If needed, you can request a confirmation of your company’s TIN from the State Tax Service.
  • Cost: No fees for obtaining a TIN.
  • Key Contact:

5. Register for VAT (if applicable)

If your company’s anticipated turnover exceeds UAH 1 million (~$27,000 USD), or if you plan to engage in VAT-taxable activities, you must register for Value Added Tax (VAT) with the State Tax Service. VAT registration is mandatory for certain business activities (e.g., import/export) regardless of turnover.

  • How to Proceed:
    • Submit an application for VAT registration to the State Tax Service within 10 days of exceeding the turnover threshold.
    • You will receive a VAT Certificate and be assigned a VAT payer number.
  • Cost: No fees for VAT registration.
  • Key Contact:

6. Open a Corporate Bank Account

Once your company is registered, you will need to open a corporate bank account at a licensed Ukrainian bank. This account will be used for all company transactions, including capital contributions, payments to suppliers, and payroll.

  • How to Proceed:
    • Select a Ukrainian bank with favorable business banking services (e.g., PrivatBank, Oschadbank, Raiffeisen Bank).
    • Submit the following documents to the bank:
      • Proof of company registration (certificate from the Unified State Register)
      • Confirmation of TIN and VAT registration (if applicable)
      • Company Charter
      • Board resolution authorizing the opening of the account
      • Passport and TIN of the company’s director
    • Some banks may allow the account opening process to be initiated online.
  • Cost: Most banks charge a small monthly maintenance fee, ranging from UAH 150 to UAH 500 (~$5–$15 USD).
  • Key Contact:

7. Contribute Initial Share Capital

Ukrainian law requires that founders contribute the initial share capital to the company’s bank account. There is no minimum share capital requirement for LLCs, which gives flexibility to founders to decide the amount.

  • How to Proceed:
    • Deposit the agreed-upon share capital into the company’s corporate bank account.
    • Ensure that the contribution is made within 6 months of registration.
  • Cost: Dependent on the amount of share capital you decide to contribute. No minimum is required by law for LLCs.

8. Register Employees and Payroll with the Social Insurance Fund

If you plan to hire employees, you must register your company with the Social Insurance Fund and the Pension Fund of Ukraine. You are required to withhold and remit employee income tax and social security contributions from your employees’ salaries.

  • How to Proceed:
    • Register your company as an employer with the Social Insurance Fund and Pension Fund through the State Tax Service.
    • Set up payroll procedures to withhold personal income tax (18%), military tax (1.5%), and Unified Social Contribution (22%) on employee salaries.
  • Key Contact:

9. Obtain Business Permits and Licenses (if applicable)

Depending on the nature of your business, you may need to obtain additional business permits or licenses from relevant authorities in Ukraine. Common industries requiring licenses include:

  • Financial services
  • Telecommunications
  • Construction
  • Healthcare
  • How to Proceed:
    • Check the licensing requirements for your industry with the Ministry of Economy or relevant regulatory body.
    • Apply for the necessary permits or licenses before starting operations.
  • Key Contact:

10. Comply with Ongoing Reporting and Tax Obligations

After incorporation, your company will need to comply with ongoing regulatory, tax, and reporting obligations. This includes:

  • Filing annual financial statements with the Tax Service.
  • Submitting quarterly tax returns (if applicable).
  • Paying corporate taxes (current corporate tax rate: 18%).
  • Key Contact:

Manufacturing in Ukraine

Setting up a manufacturing plant in Ukraine can be a rewarding opportunity given the country’s strategic location, relatively low labor costs, and access to both EU and CIS markets. However, the process involves several legal, regulatory, and logistical steps. Below is a step-by-step guide, including key contacts in government and related agencies, to help you navigate the process.

1. Conduct a Feasibility Study and Market Research

Before setting up a manufacturing plant, it’s essential to conduct a feasibility study to determine the viability of your project. You should assess:

  • Market demand for your product (both domestic and export markets)
  • Availability of raw materials and supply chains
  • Labor costs and availability of skilled workers
  • Infrastructure (transportation, utilities, etc.)
  • Environmental impact and regulatory requirements
  • Key Contacts:

2. Choose a Legal Structure and Register a Company

To set up a manufacturing plant, you must first incorporate a company in Ukraine. The most common structure is a Limited Liability Company (LLC).

  • How to Proceed:
    • Choose the legal structure (LLC is most common for foreign investors).
    • Register your company with the Unified State Register of Legal Entities, Individual Entrepreneurs, and Public Organizations.
    • You will need to submit the company charter, obtain a tax identification number, and open a corporate bank account.
  • Key Contacts:

3. Select a Location and Acquire Land or Facilities

Choosing the right location is crucial for the success of your manufacturing plant. You should consider factors such as proximity to suppliers, access to transportation networks (road, rail, ports), and local labor availability.

  • How to Proceed:
    • Research industrial zones and regions that offer favorable conditions for manufacturing (e.g., tax incentives, proximity to key markets).
    • Contact local authorities or real estate firms to find available land or existing facilities for purchase or lease.
    • Ensure the land is zoned for industrial use and complies with local regulations.
  • Key Contacts:

4. Obtain Necessary Permits and Licenses

Setting up a manufacturing plant requires various permits and licenses depending on the nature of your production. Common permits include:

  • Construction Permit: If you’re building or renovating a facility.
  • Environmental Permit: For waste management, emissions, and resource use.
  • Operational License: For specific industries like pharmaceuticals, food processing, chemicals, etc.
  • How to Proceed:
    • Submit an application for a construction permit to the relevant local authority.
    • Apply for environmental permits from the Ministry of Environmental Protection and Natural Resources.
    • Obtain industry-specific licenses if necessary.
  • Key Contacts:

5. Develop Construction Plans and Begin Facility Development

Once permits are obtained, you can proceed with developing the manufacturing facility. This may involve constructing a new plant or renovating an existing building.

  • How to Proceed:
    • Hire local engineering, procurement, and construction (EPC) contractors to design and build the facility.
    • Ensure the construction complies with local building codes and health & safety regulations.
    • Coordinate with local utility companies to secure access to water, electricity, gas, and telecommunications.
  • Key Contacts:
    • State Architectural and Construction Inspection of Ukraine
      Website: https://dabi.gov.ua
    • Local Utility Providers (e.g., Kyivenergo, Ukrhydroenergo)

6. Obtain Equipment and Machinery

Source and install the necessary equipment and machinery for your manufacturing operations. Ukraine has access to both European and CIS markets for industrial equipment, so you can consider importing or purchasing locally.

  • How to Proceed:
    • Identify suppliers of manufacturing equipment either locally or internationally.
    • Ensure the equipment complies with Ukrainian technical standards and safety regulations.
    • If importing equipment, work with a customs broker to ensure compliance with customs regulations and duty payments.
  • Key Contacts:

7. Hire and Register Employees

To operate your plant, you will need to hire a workforce. Ukrainian labor law mandates that all employees must be registered with the State Employment Service and the Social Insurance Fund.

  • How to Proceed:
    • Recruit employees either directly or through local recruitment agencies.
    • Register the employees with the State Employment Service and the Social Insurance Fund.
    • Set up a payroll system that complies with Ukrainian labor laws, including withholding for income tax (18%), military tax (1.5%), and Unified Social Contribution (22%).
  • Key Contacts:

8. Comply with Environmental and Safety Regulations

Manufacturing operations in Ukraine are subject to strict environmental and health & safety regulations. You must comply with these regulations to avoid penalties and ensure a safe working environment.

  • How to Proceed:
    • Conduct an environmental impact assessment (EIA) if required for your industry.
    • Develop and implement a health and safety management plan to comply with Ukrainian labor laws.
    • Arrange regular inspections by the State Labor Service and adhere to fire safety regulations.
  • Key Contact:

9. Register for VAT and Pay Corporate Taxes

If your manufacturing plant anticipates annual revenue exceeding UAH 1 million (~$27,000 USD), you must register for Value Added Tax (VAT). Additionally, corporate profits are subject to a corporate tax rate of 18%.

  • How to Proceed:
    • Apply for VAT registration with the State Tax Service.
    • Set up a system to regularly file VAT returns and corporate tax returns.
    • Ensure compliance with all tax obligations, including social security contributions for employees.
  • Key Contact:

10. Commence Operations and Scale Up

Once all necessary permits, licenses, and registrations are in place, you can commence manufacturing operations. As you scale up, you may want to take advantage of government incentives, export opportunities, and local supply chains.

  • How to Proceed:
    • Begin production and ensure compliance with ongoing regulatory requirements.
    • Explore export opportunities via free trade agreements like the Deep and Comprehensive Free Trade Area (DCFTA) with the European Union.
    • Leverage government incentives for manufacturers, such as tax benefits or grants to support job creation and investment.
  • Key Contacts:

Key Contacts for Setting Up a Manufacturing Plant in Ukraine

  1. Ministry of Economy of Ukraine
    Website: https://me.gov.ua
    Oversees economic policy, foreign investment, and business permits.
  2. State Architectural and Construction Inspection of Ukraine
    Website: https://dabi.gov.ua
    Manages construction permits and building code compliance.
  3. Ministry of Environmental Protection and Natural Resources
    Website: https://mepr.gov.ua
    Responsible for environmental permits and sustainability regulations.
  4. State Customs Service of Ukraine
    Website: https://customs.gov.ua
    Oversees import/export regulations and customs duties.
  5. State Tax Service of Ukraine
    Website: https://tax.gov.ua
    Manages VAT registration, corporate taxes, and other tax obligations.
  6. State Employment Service of Ukraine
    Website: https://www.dcz.gov.ua
    Manages labor registration and employment matters.
  7. Ukrainian Chamber of Commerce and Industry
    Website: https://ucci.org.ua
    Provides support for businesses, including export assistance and market research.

Trademark Registration in Ukraine

Registering a trademark in Ukraine grants businesses exclusive rights to use their brand names, logos, and other marks in connection with their goods or services. The process is governed by Ukrainian intellectual property law and involves several steps. Below is a detailed guide, including related costs and key contacts in government or related agencies.

1. Conduct a Trademark Search

Before filing a trademark application, it is important to conduct a trademark search to ensure that your desired mark is unique and not already registered or pending registration in Ukraine.

  • How to Proceed:
    • Visit the Ukrainian Intellectual Property Institute (Ukrpatent) website and use the online trademark database to check for existing trademarks.
    • Optionally, hire a trademark attorney to perform a more thorough search and provide legal advice.
  • Cost:
    • Free for a basic search on the Ukrpatent website.
    • UAH 1,000–3,000 (~$30–$100 USD) if you hire a professional to conduct the search.
  • Key Contact:

2. Prepare the Application

Once you’ve confirmed that your desired trademark is available, prepare the trademark application. The application must include the following details:

  • Applicant’s name and address
  • Trademark representation (logo or wordmark)
  • List of goods or services the trademark will cover (classified according to the Nice Classification System)
  • How to Proceed:
    • Ensure that the trademark image is clear and accurately represents your mark.
    • Choose the appropriate classes of goods or services using the Nice Classification system.
    • You may file the application as an individual, a legal entity, or through a trademark attorney.
  • Cost:
    • UAH 4,800 (~$130 USD) for filing an application for one class of goods or services.
    • UAH 1,200 (~$35 USD) for each additional class.
    • Attorney fees (optional): UAH 5,000–10,000 (~$150–$300 USD) if you hire legal assistance.
  • Key Contact:

3. Submit the Application to Ukrpatent

Submit your completed application to Ukrpatent, either online or in person. You can file electronically through the Ukrpatent E-Portal or submit physical copies at the Ukrpatent office.

  • How to Proceed:
    • Submit your application through the Ukrpatent E-Portal for a faster process.
    • Pay the required fees at the time of submission.
    • Keep a copy of the submission acknowledgment for your records.
  • Cost:
    • UAH 4,800 (~$130 USD) for filing an application for one class.
    • Additional classes: UAH 1,200 (~$35 USD) per class.
  • Key Contact:

4. Undergo Formal Examination

Once the application is submitted, it will undergo a formal examination by Ukrpatent. This examination ensures that all required documents are complete and the application meets the basic legal requirements.

  • How to Proceed:
    • Wait for Ukrpatent to notify you of the formal examination results. This process typically takes 1–2 months.
    • If any documents are missing or need clarification, Ukrpatent will request additional information.
  • Cost: No additional cost for the formal examination if the application is complete.

5. Undergo Substantive Examination

After passing the formal examination, the application undergoes a substantive examination, during which Ukrpatent will evaluate whether the trademark meets the distinctiveness and registrability requirements. This includes checking for conflicts with existing trademarks and ensuring the mark does not violate public policy or morality.

  • How to Proceed:
    • Ukrpatent will notify you once the substantive examination is complete. This process typically takes 8–12 months.
    • If any issues arise, you will have the opportunity to respond or amend the application.
  • Cost:
    • UAH 5,000–10,000 (~$150–$300 USD) for legal representation or attorney fees, if applicable.

6. Publication of the Trademark

Once the trademark passes the substantive examination, Ukrpatent will publish the trademark in the Official Bulletin of Industrial Property. During this period, third parties have three months to file an opposition if they believe your trademark infringes on their rights.

  • How to Proceed:
    • Monitor the Official Bulletin for the publication of your trademark.
    • If no oppositions are filed within the three-month period, the trademark will proceed to registration.
  • Cost: No additional cost for the publication.
  • Key Contact:

7. Trademark Registration Certificate Issuance

If no oppositions are filed, and the trademark passes all examinations, Ukrpatent will issue a Trademark Registration Certificate. This certificate grants you exclusive rights to use the trademark in Ukraine for 10 years, with the option to renew.

  • How to Proceed:
    • Pay the registration fee and wait for the issuance of the certificate.
    • Once issued, ensure you maintain the trademark by using it in commerce and renewing it before expiration.
  • Cost:
    • UAH 600 (~$16 USD) for issuing the Trademark Registration Certificate.
  • Key Contact:

8. Renewal and Maintenance

A Ukrainian trademark is valid for 10 years from the filing date. You can renew the trademark for additional 10-year periods indefinitely, as long as you pay the renewal fee.

  • How to Proceed:
    • Submit a renewal application within 6 months before the expiration date.
    • Pay the renewal fee and receive confirmation of the trademark extension.
  • Cost:
    • UAH 12,000 (~$325 USD) for a 10-year renewal.
  • Key Contact:

Key Contacts for Trademark Registration in Ukraine

  1. Ukrainian Intellectual Property Institute (Ukrpatent)
    Website: https://ukrpatent.org
    Ukrpatent is the central authority for all intellectual property matters in Ukraine, including trademark registration, searches, and renewals.
  2. Ukrpatent E-Portal
    Website: https://e-services.uipv.org
    The e-portal allows for the electronic submission of trademark applications and tracking of application status.
  3. Official Bulletin of Industrial Property
    Website: https://ukrpatent.org/ua/bulletin
    The official publication where new trademarks are published for opposition.

Commercial Dispute Resolution in Ukraine

Resolving commercial disputes in Ukraine can be done through several formal and alternative mechanisms, depending on the nature of the dispute. The primary method is through the Commercial Courts, but alternative dispute resolution (ADR) methods like mediation and arbitration are also becoming popular. Below is a step-by-step guide to the commercial dispute resolution process in Ukraine, including costs and key contacts with government or related agencies.

1. Attempt Negotiation or Mediation (Optional)

Before resorting to formal litigation, parties are encouraged to attempt to resolve their dispute through negotiation or mediation. Mediation is an informal process where a neutral third party helps the disputing parties reach a mutually acceptable solution.

  • How to Proceed:
    • Engage in direct negotiations with the other party.
    • If negotiations fail or stall, consider hiring a professional mediator. Mediation can be voluntary or contractually agreed upon.
    • Mediation agreements are not enforceable unless formalized in a court-approved settlement.
  • Cost:
    • Mediation fees depend on the complexity of the case and the mediator’s experience but may range from UAH 5,000 to UAH 20,000 (~$150–$600 USD).
    • Free or minimal cost if the mediation is conducted through government-supported mediation centers.
  • Key Contact:

2. Determine Jurisdiction and Court Competence

If mediation or negotiation fails, the next step is to file a lawsuit with a Commercial Court. In Ukraine, commercial disputes typically fall under the jurisdiction of the Commercial Courts, which handle disputes between legal entities, individual entrepreneurs, or between them and state entities.

  • How to Proceed:
    • Verify whether the dispute falls under the jurisdiction of the Commercial Court. Generally, these courts handle:
      • Disputes related to contracts, debts, property rights, corporate governance, and more.
    • If the dispute involves an international element (e.g., foreign parties), you might consider international arbitration or the Kyiv Court of Appeal for international commercial disputes.
  • Key Contact:

3. File a Claim with the Commercial Court

To initiate a commercial lawsuit, you must file a statement of claim with the appropriate Commercial Court. The statement must detail the facts of the case, claims, and legal grounds.

  • How to Proceed:
    • Prepare the statement of claim including:
      • Names and addresses of the parties
      • The cause of action (e.g., breach of contract)
      • Supporting documents (contracts, invoices, correspondence, etc.)
      • Calculation of damages
    • Submit the claim to the Commercial Court where the defendant is located or, in some cases, where the contract was performed.
  • Cost:
    • Court fees are generally calculated as a percentage of the claim amount:
      • 1.5% of the claim amount, with a minimum of UAH 2,102 ($60 USD) and a maximum of UAH 350,000 ($9,500 USD).
    • If the claim is non-monetary (e.g., about property rights or performance of obligations), the court fee is around UAH 2,102 (~$60 USD).
  • Key Contact:
    • Unified Judiciary of Ukraine
      Website: https://court.gov.ua
      This platform allows you to file claims, track case progress, and access court decisions.

4. Preliminary Hearing and Case Preparation

Once the claim is filed, the court will schedule a preliminary hearing. During this stage, the judge may attempt to facilitate a settlement or clarify issues for trial.

  • How to Proceed:
    • Prepare for the hearing by organizing your evidence and legal arguments.
    • The court will request both parties to submit all relevant documents and may issue procedural orders.
    • The judge may recommend a settlement before proceeding to a full trial.
  • Cost: No additional cost for the preliminary hearing unless you hire legal representation, which may cost UAH 10,000–50,000 (~$300–$1,500 USD) depending on the complexity of the case.

5. Trial and Judgment

If no settlement is reached during the preliminary hearing, the court will proceed to a full trial. The trial may involve oral arguments, expert testimony, and witness examination.

  • How to Proceed:
    • Present your case before the judge, including documents, witness statements, and expert reports if necessary.
    • The opposing party will also present their evidence and arguments.
    • The court will issue a judgment once it has reviewed all the evidence and heard from both parties.
  • Cost:
    • Legal fees for representation at trial may range from UAH 20,000 to UAH 100,000 (~$600–$3,000 USD), depending on the complexity of the case and attorney fees.
  • Key Contact:

6. Appeal the Judgment (if necessary)

If you are dissatisfied with the court’s decision, you can appeal to the Appellate Commercial Court or the High Commercial Court of Ukraine. Appeals must typically be filed within 20 days of the initial court ruling.

  • How to Proceed:
    • File a notice of appeal with the appellate court, specifying the grounds for appeal.
    • The appellate court will review the case and may uphold, modify, or overturn the lower court’s decision.
  • Cost:
    • Court fees for an appeal are generally 110% of the original filing fee, with a minimum of UAH 2,102 (~$60 USD).
  • Key Contact:

7. Enforce the Court Judgment

Once a final decision is issued, the successful party can apply for enforcement of the judgment. This is done through the State Enforcement Service or a private enforcement officer.

  • How to Proceed:
    • File an application for enforcement with the State Enforcement Service or hire a licensed private enforcement officer.
    • The enforcement officer will execute the judgment, which may include seizing assets, freezing bank accounts, or garnishing wages.
  • Cost:
    • State Enforcement Service Fee: 10% of the amount recovered.
    • Private Enforcement Officer Fee: Negotiated fee, typically 5-10% of the enforced amount.
  • Key Contacts:

8. Consider Arbitration as an Alternative (Optional)

For certain disputes, particularly those involving international contracts, arbitration may be a preferred alternative to litigation. Ukraine recognizes both domestic and international arbitration awards, and parties can agree to resolve disputes through an arbitration clause in their contracts.

  • How to Proceed:
    • If your contract includes an arbitration clause, file for arbitration with an arbitration court.
    • Common arbitration bodies in Ukraine include the International Commercial Arbitration Court at the Ukrainian Chamber of Commerce and Industry (ICAC).
  • Cost:
    • Arbitration fees vary depending on the size and complexity of the dispute. ICAC fees are generally based on a percentage of the claim amount, starting at 1% of the claim with a minimum fee of UAH 30,000 (~$800 USD).
  • Key Contact:

Key Contacts for Commercial Dispute Resolution in Ukraine

  1. Commercial Court of Ukraine
    Website: https://supreme.court.gov.ua/supreme/pokaznyky/commercial
    Handles commercial litigation between businesses.
  2. State Enforcement Service of Ukraine
    Website: https://minjust.gov.ua/sections/derzhavna-vikonavcha-sluzhba
    Enforces court judgments.
  3. International Commercial Arbitration Court (ICAC)
    Website: https://icac.org.ua/en
    Handles arbitration of international and domestic commercial disputes.
  4. Ukrainian Mediation Center (UMC)
    Website: https://ukrmediation.com.ua
    Offers mediation services for resolving commercial disputes.
  5. High Commercial Court of Ukraine
    Website: https://supreme.court.gov.ua
    Handles appeals in commercial dispute cases.

Other Notes on Doing Business with Ukraine

Ukraine presents a range of opportunities and challenges for foreign investors and businesses. To ensure success in such a dynamic environment, it is crucial to consider various social, cultural, political, and economic factors that can influence your business operations. Below is an overview of key factors to consider when doing business in Ukraine.

1. Political Climate and Stability

Understanding Ukraine’s political environment is essential for foreign investors. Since gaining independence from the Soviet Union in 1991, Ukraine has gone through significant political changes, including the Revolution of Dignity in 2014 and ongoing tensions with Russia, including the annexation of Crimea and the conflict in Eastern Ukraine.

  • Key Political Considerations:
    • Pro-European Reforms: Following the 2014 revolution, Ukraine has implemented a series of economic and political reforms aimed at aligning with European Union standards. These reforms have improved transparency, anti-corruption efforts, and business regulations, but challenges remain.
    • Ongoing Conflict: The conflict in Eastern Ukraine and tensions with Russia pose risks, particularly in affected regions. However, much of the country, including major business hubs like Kyiv, Lviv, and Odesa, remains stable and safe for business.
    • Government Support for Business: The Ukrainian government actively seeks foreign investment and has introduced incentives, such as deregulation, privatization of state-owned enterprises, and free trade agreements with the EU, Canada, and other countries.
  • Key Contact:

2. Rule of Law and Legal Framework

Ukraine has made significant progress in improving its rule of law and legal infrastructure, particularly in the areas of intellectual property, corporate governance, and contract enforcement. However, challenges such as corruption and judicial inefficiencies still exist.

  • Key Legal Considerations:
    • Contract Enforcement: Ukraine’s legal system provides the framework for the enforcement of contracts, but businesses may encounter delays in court proceedings. The government is working on judicial reforms to improve the efficiency and transparency of the courts.
    • Anti-Corruption Measures: Ukraine has introduced several anti-corruption institutions, including the National Anti-Corruption Bureau of Ukraine (NABU) and the High Anti-Corruption Court, to tackle corruption in both the public and private sectors.
    • Intellectual Property Protection: Copyrights, trademarks, and patents are protected under Ukrainian law, but enforcement can be inconsistent. Businesses are advised to register their intellectual property and work with local legal experts to ensure protection.
  • Key Contact:

3. Cultural and Social Considerations

Understanding the cultural and social environment is key to building successful business relationships in Ukraine. The country has a rich cultural heritage, and its social norms can vary significantly between regions.

  • Key Cultural Considerations:
    • Business Etiquette: Ukrainian business culture places a high value on personal relationships and trust. Building rapport with business partners is essential, and face-to-face meetings are often preferred over virtual communication. Punctuality is important, and respect for hierarchy is commonly observed.
    • Language: Ukrainian is the official language, although Russian is widely spoken, particularly in the eastern and southern regions. English is becoming more common in business settings, especially in major cities like Kyiv and Lviv. However, it’s advisable to have an interpreter or provide translated documents for official dealings.
    • Regional Differences: Local customs and business practices can vary between regions. Western Ukraine, for example, tends to have closer cultural ties with Europe and may exhibit a more Westernized business culture, while Eastern Ukraine may have more Soviet-era influences.
    • Consumer Behavior: Ukrainian consumers are price-conscious but increasingly attracted to quality and foreign brands. The country’s growing middle class is driving demand for higher-end products, especially in urban areas.
  • Key Contact:

4. Foreign Exchange and Currency Risks

Ukraine’s official currency is the Ukrainian Hryvnia (UAH). The currency is subject to fluctuations due to macroeconomic conditions and political developments. Foreign investors should be aware of foreign exchange risks and plan accordingly.

  • Key Economic Considerations:
    • Currency Fluctuations: The Hryvnia can be volatile, particularly during periods of political instability or economic uncertainty. Businesses should consider hedging strategies to mitigate foreign exchange risks when dealing with large transactions in UAH.
    • Exchange Controls: Ukraine has made significant progress in liberalizing its currency controls. However, certain restrictions on capital movement may still apply, particularly for large foreign currency transfers and repatriation of profits. It is important to consult with a local financial expert to navigate these regulations.
    • Inflation: Ukraine’s inflation rate has been relatively high in recent years, which can affect the cost of doing business. Businesses should account for inflation when setting prices and negotiating contracts.
  • Key Contact:

5. Taxation and Regulatory Environment

Ukraine has reformed its tax system to make it more business-friendly, but it remains important to understand the local tax structure and compliance requirements.

  • Key Tax Considerations:
    • Corporate Income Tax: The corporate income tax rate in Ukraine is 18%. Companies must also pay the Value Added Tax (VAT), which is currently set at 20% for most goods and services.
    • Simplified Tax System: Ukraine offers a simplified tax system for small and medium-sized businesses, which allows companies with annual revenue below a certain threshold to pay a flat tax rate instead of the standard corporate tax.
    • Tax Incentives: The government offers various tax incentives for foreign investors, including exemptions or reductions in certain sectors such as agriculture, IT, and renewable energy.
    • Compliance: Ukraine’s tax system can be complex, and businesses are advised to work with local accountants or tax advisors to ensure compliance with all regulations.
  • Key Contact:

6. Labor Market and Human Resources

Ukraine offers a skilled and educated workforce at competitive labor costs. However, businesses must be aware of the local labor laws and employment practices.

  • Key Labor Considerations:
    • Labor Costs: Ukraine has relatively low labor costs compared to Western Europe, making it an attractive destination for manufacturing, IT outsourcing, and other labor-intensive industries.
    • Workforce Education: Ukraine is known for its strong education system, particularly in the fields of engineering, IT, and science. The country has a large pool of IT professionals, and the tech sector has seen significant growth in recent years.
    • Employment Law: Ukrainian labor law is protective of employees. Employers must provide written employment contracts, comply with regulations on working hours, overtime, and paid leave, and contribute to social security and pension funds.
    • Hiring and Firing: Terminating employees can be complex due to the protections offered by Ukrainian labor law. Businesses should ensure they follow proper procedures to avoid legal disputes.
  • Key Contact:

7. Infrastructure and Logistics

Ukraine’s infrastructure is improving, but there are still challenges, particularly in transportation and logistics. However, the country’s strategic location makes it a key logistics hub between Europe and Asia.

  • Key Infrastructure Considerations:
    • Transportation: Ukraine has a well-developed railroad network and several major seaports, such as the Port of Odesa. The road infrastructure is being upgraded, but there are still areas where roads are in poor condition, making transportation slower and more expensive.
    • Energy and Utilities: Ukraine has a diverse energy sector, including natural gas, nuclear, and renewable energy sources. However, energy costs can be volatile, and businesses should consider potential disruptions.
    • Digital Infrastructure: Ukraine has a fast-growing IT sector and a well-developed digital infrastructure in urban areas. However, rural regions may have limited access to high-speed internet.
  • Key Contact:

8. Foreign Investment and Trade

Ukraine has actively sought to attract foreign direct investment (FDI) by improving its business climate, reducing administrative barriers, and offering incentives.

  • Key Foreign Investment Considerations:
    • Investment Incentives: Ukraine offers free trade zones, tax exemptions, and other incentives for foreign investors in key sectors such as agriculture, manufacturing, IT, and renewable energy.
    • EU Association Agreement: Ukraine has signed a Deep and Comprehensive Free Trade Area (DCFTA) agreement with the European Union, allowing businesses access to the EU market with reduced tariffs and non-tariff barriers.
    • Privatization Opportunities: The Ukrainian government is actively privatizing state-owned enterprises, providing significant opportunities for foreign investors to enter various industries.
  • Key Contact:

Key Contacts and Resources

  1. Ministry of Foreign Affairs of Ukraine
    Website: https://mfa.gov.ua/en
  2. Ministry of Justice of Ukraine
    Website: https://minjust.gov.ua/en
  3. Ukrainian Chamber of Commerce and Industry
    Website: https://ucci.org.ua
  4. National Bank of Ukraine (NBU)
    Website: https://bank.gov.ua/en
  5. State Tax Service of Ukraine
    Website: https://tax.gov.ua/en
  6. State Employment Service of Ukraine
    Website: https://www.dcz.gov.ua/en
  7. Ministry of Infrastructure of Ukraine
    Website: https://mtu.gov.ua/en
  8. UkraineInvest
    Website: https://ukraineinvest.gov.ua

Our Members Include Leading Organizations in Ukraine

Ask our Experts on Doing Business in/with Ukraine

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