Business in Ukraine

General Information about Ukraine: Official name - Ukraine. Population - 52 million. Area - 603,700 sq. m. Language - Ukrainian. Capital City - Kyiv. Currency - Grivnia

National Holidays of Ukraine: January 1 – New Years Day; January 7 – Christmas; March 8 – International Women’s Day; April – Easter; Holy Trinity Day; May 1 & 2 – Day of International Solidarity; May 9 – Victory Day; June 28 – Constitution Day; August 24 – Independence Day.

Legal System

Ukraine gained its independence in 1991. As a newly independent country, creating a modern and stable legal system became one of Ukraine's top priorities. The current legal system is still undergoing reforms. Ukraine had established legal system based on continental law. In the Unite States, this system is referred to as a civil law (European) system as opposite to the common law (Anglo-American) system. Therefore, there is no need to build absolutely every legal institution from scratch. Even in the worst days of Communist ruling, the core of Ukrainian civil law was quite workable - it was BGB, the German Civil Code. Of course, there was socialist doctrine grafted on top, but the principal areas of law, such as the law of contracts, civil law obligations and liability, torts and labor law, as well as applicability of choice of law and international arbitration to international business transactions, were based on European tradition.

Constitution

The adoption of a new constitution of Ukraine on the 28th of June 1996 became an important event in the life of the people of Ukraine. The basic economic, social, cultural, public and political rights are guaranteed by the Constitution. According to the Constitution of Ukraine is a sovereign, independent, democratic, social and juridical state. Territorial integrity and inviolability of Ukraine are proclaimed in the Constitution. The power in Ukraine belongs to people. It is exercised through democratic elections and referendums and by state government bodies and self-government institutions. The form of state government is a republic. The head of state is the president. The Verkhovna Rada of Ukraine is the highest legislative body in the country. The principles of economic, political and ideological multiformity are proclaimed in the Constitution. All citizens have equal rights. People are proclaimed to be the greatest social value in Ukraine. These and other regulations are successively developed in the chapters of the Constitution. The best national traditions are embodied in the Constitution; it creates the legal bases of regulation of social relations.

Foreign investment in Ukraine

According to the current Ukrainian legislation, foreign investors have the right to make investments within the territory of Ukraine in the form of hard foreign currency, immovable and movable property and related property rights; other values (property) considered to be foreign investments according to the current legislation.

The given types of investment may be performed in the form of participation in economic partnership established with the Ukrainian legal entities or citizens.

An enterprise is granted the status of an enterprise with foreign investments after a foreign investment is reflected in its balance. The Status of the enterprise with foreign investments grants the enterprise with certain incentives including tax incentives.

The State shall guarantee stable protection of foreign investments. For being granted the status, the foreign investment shall be registered.

Foreign investment according to the Article 395 of the Economic Code of Ukraine shall be officially registered within the period of three working days by the Council of Ministers of the Autonomous Republic of the Crimea, as well as by regional, Kyiv and Sevastopol City State Administrations after being actually invested.

The procedure of the registration is determined by the Resolution “On State Registration of Foreign Investments”.

Business partnership: A partnership is a type of business entity in which partners share with each other the profits or losses of the business.

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