Doing business in Ukraine today is about more than risk. Reconstruction, energy, agriculture and technology all offer real opportunities. Yet the rules differ from what most foreign companies are used to. We guide you from the decision to enter the market to your first signed contract — without unpleasant surprises.
Where to start with doing business in Ukraine
The first step is to define what you actually plan to do here. Selling to an importer, setting up production, opening a service centre or buying an existing business each call for a different structure. We therefore start with a short scoping session to pin down goals, budget and timing.
Next, we prepare a roadmap: which entities you need, which permits apply, who signs what and how long each stage is likely to take.
Choosing the right vehicle
The most common vehicle is the limited liability company (TOV). It is governed by the Law of Ukraine “On Limited and Additional Liability Companies”. The law allows shareholder agreements, flexible allocation of powers and well-defined exit mechanisms — features familiar to most international investors.
Alternatives include a joint-stock company for larger projects or a representative office of the foreign parent. However, a representative office is not a legal entity and should not trade in its own right. In practice, therefore, you will usually need a subsidiary to sell and employ staff.
Buying an existing business
If you are acquiring a company, legal due diligence is essential. Moreover, the deal may require merger clearance from the Antimonopoly Committee even when the buyer is a foreign group with a modest local footprint. Our Antitrust practice handles these filings.
Registration, beneficial owners and banking
Registering a company in Ukraine is usually quick once the documents are in order. Foreign documents need an apostille or consular legalisation, plus a certified Ukrainian translation. You must also disclose your ultimate beneficial owners and ownership structure.
Opening a bank account is a separate step. Banks look closely at owners and the source of funds. In addition, currency control rules and martial-law restrictions on cross-border payments — including dividend repatriation — remain in place and change periodically. Your funding plan should therefore be agreed with counsel early on.
Tax considerations when doing business in Ukraine
The standard corporate income tax rate is 18%, and the standard VAT rate is 20%. Payments to non-residents, such as dividends, interest and royalties, are generally subject to withholding tax in Ukraine. However, Ukraine’s double tax treaties can reduce the rate, provided the recipient qualifies.
As a result, your financing structure and ownership chain have a direct impact on tax. Transfer pricing rules also apply to related-party transactions. See our Tax practice for more.
Regulated sectors and permits
Some activities require a licence or permit before you start. For example, energy, financial services, healthcare and trade in excise goods each have their own regulator. The permit list should therefore be drawn up at the planning stage, not after the company is registered.
Ukraine also offers a state support framework for investment projects with significant investments. This status can bring specific incentives, but the eligibility criteria are strict. We help you assess whether it fits your project. For the power sector, see our Energy practice.
Hiring and employment
Employment relationships are governed by the Labour Code of Ukraine, which is more protective of employees than many foreign investors expect. Foreign nationals working in Ukraine generally need a work permit. Tech companies may also consider Diia City, a special regime with its own tax rules and gig contracts.
We prepare employment contracts, internal policies and hiring documents as part of our Business Legal Support.
Protecting your brand and IP
Trademark rights in Ukraine arise from registration, not from use. You should therefore file before launching — either nationally or via the Madrid System. For example, a registered mark lets you ask customs to stop counterfeit imports. We also make sure the company owns its code, designs and know-how. See our Intellectual Property practice.
Doing business in Ukraine: investment protection and disputes
Ukraine has bilateral investment treaties with many countries. Commercial disputes, in turn, can be referred to international arbitration. It is therefore worth getting the arbitration clause and governing law right from your very first contract. We handle disputes through our Dispute Resolution practice.
We will not tell you that doing business in Ukraine is risk-free. What we can do is help you see the risks early and manage them well. To discuss your project, get in touch — we work in both English and Ukrainian.