Market Entry and Direct Investment in Ukraine

In most cases, this takes the form of a TOV, i.e. a limited liability company under Ukrainian law. It has no statutory minimum capital requirement, may be wholly owned by a foreign parent company and is similar in structure to a German GmbH. A representative office or branch may be considered for the sole purposes of market monitoring and establishing initial contacts.

No, the TOV does not stipulate a statutory minimum share capital. The shareholders determine the amount themselves. Liability is limited to the company’s assets.

The registration with the Unified State Register itself takes only a few days and can be carried out via state registrars, notaries or the Diia platform. The preparatory steps for foreign shareholders, such as the legalisation and translation of documents and the opening of a bank account, take longer, however.

Yes, on two levels. Ukrainian law provides for national treatment and protection against expropriation without compensation. In addition, there is the investment protection agreement between Germany and Ukraine, which guarantees international standards of protection and access to investor-state arbitration. Ukraine is also a member of ICSID.

In principle, yes, but subject to foreign exchange regulations. Since the start of the full-scale invasion, the National Bank has imposed restrictions on the repatriation of dividends and cross-border payments. However, these restrictions are being gradually eased. The current situation should be checked before any major transaction.

Non-agricultural land may be acquired by foreign nationals under certain conditions, usually in connection with their own on-site business activities. Foreign nationals and foreign-controlled companies are not permitted to acquire agricultural land. In such cases, arrangements are made through leases or locally structured shareholdings.