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Doing business in Ukraine is different from doing business in other countries, especially the U.S. , England , Germany , and other northern and central European countries. Ukraine 's culture is not by nature very production-oriented, and it may not be the easiest place to do business, but Ukraine has other virtues — for example, it is a great place to make friends, meet interesting people, and have fun.
But it is necessary to know HOW TO START and WHAT TO EXPECT?
Region |
Eastern Europe & Central Asia |
Income Category |
Lower middle income |
Population |
46,008,406 |
GNI Per Capita (US$) |
2,800.00 |
Doing Business 2011 Rank |
Doing Business 2010 Rank |
Change in Rank |
145 |
147 |
 2
|
Topic Rankings |
DB 2011 Rank |
DB 2010 Rank |
Change in Rank |
Starting a Business |
118 |
136 |
 18
|
Dealing with Construction Permits |
179 |
181 |
 2
|
Registering Property |
164 |
160 |
 -4
|
Getting Credit |
32 |
30 |
 -2
|
Protecting Investors |
109 |
108 |
 -1
|
Paying Taxes |
181 |
181 |
No change |
Trading Across Borders |
139 |
139 |
No change |
Enforcing Contracts |
43 |
43 |
No change |
Closing a Business |
150 |
145 |
 -5
|
Indicator |
Ukraine |
Eastern Europe & Central Asia
average |
Procedures (number) |
10 |
6.3 |
Time (days) |
27 |
16.3 |
Cost (% of income per capita) |
6.1 |
8.5 |
Paid-in Min. Capital (% of income per capita) |
2.2 |
12.3 |
No. |
Procedure |
Time to Complete |
Associated Costs |
1 |
Notarize company charter and execute premises (if needed) |
1 day |
UAH 600 |
2 |
Open a bank account for initial capital |
1 day |
no charge or up to UAH 100 |
3 |
Pay registration fee at the bank |
1 day |
nominal |
4 |
Register at the Registration Office |
5 days |
UAH 170 |
5 |
Register at the State Statistics Committee |
1 day |
UAH 25.94 |
6 |
Register VAT at the State Tax Authority and obtain a VAT number |
10 days |
UAH 17 |
7 |
Approval of Ministry of Internal Affairs to prepare a company seal |
3 days for expedite service; officially 5 business days |
UAH 162 for expedite procedure; UAH 81 for regular procedure |
8 |
Prepare a seal |
2 days |
UAH 190-250, depending on the complexity of a seal |
9 |
Open a permanent bank account |
1 day |
bank's charge or no charge |
10 |
Notify the District Tax Inspectorate of the opening of the permanent bank account |
2 days |
no charge |
No. |
Procedure |
Time to Complete |
Associated Costs |
1 |
Hire a private design institute to develop a pre-project city planning justification |
1 day |
USD 9,104 |
2 |
Request and obtain certificate of approval from the Center of City Planning and Architecture |
30 days |
no charge |
3 |
Request and obtain architectural and technical objectives/ conditions from the Chief Department of Town-Planning, Architecture and Urban Environment Design of the City State Administration |
30 days |
UAH 1,664 |
4 |
Request and obtain technical terms and conditions from the sewage authority |
15 days |
UAH 2,895 |
5 |
Request and obtain technical terms and conditions from the water supply authority |
15 days |
no charge |
6 |
Request and obtain technical terms and conditions from the electricity distribution authority |
15 days |
UAH 700 |
7 |
Request and obtain technical terms and conditions from the fixed telephone line provider |
15 days |
UAH 700 |
8 |
Request and obtain technical terms and conditions from the Fire Safety Department |
15 days |
no charge |
9 |
Request and obtain technical terms and conditions from the Department of State Auto Inspection, Main Office of the Ministry of Interior Affairs of Ukraine in City |
15 days |
no charge |
10 |
Contribution to the city social and engineering-transport infrastructure |
1 day |
UAH 246,360 |
11 |
Request and obtain approval of project design drawings and estimates by comprehensive state expertise |
74 days |
UAH 17,248 |
12 |
Request and obtain the building permit from the State Inspection of Architecture and Construction Control |
30 days |
no charge |
13 |
Request and obtain order on city layout modification from the Main Department of Control for the Improvements in City |
40 days |
no charge |
14 |
Request and connect to water and sewage services |
4 days |
UAH 700 |
15 |
Request and connect to electricity services |
4 days |
UAH 1,200 |
16 |
Request and connect to phone services |
4 days |
UAH 720 |
17 |
Obtain Act of Readiness for Exploitation of Warehouse from the State Inspectorate |
14 days |
no charge |
18 |
Receive Inspection from State Inspectorate |
1 day |
no charge |
19 |
Obtain Certificate of Compliance from State Inspection of Architecture and Construction Control |
30 days |
UAH 2,160 |
20 |
Request and obtain warehouse architectural and technical passport approval from the City Department of Construction and Architecture |
30 days |
no charge |
21 |
Register the warehouse with the Main Department of Municipal Property of the City State Administration |
90 days |
UAH 325 |
22 |
Register a ownership title over the building with Main Department of Municipal Property of the City State Administration |
30 days |
UAH 51 |
No. |
Procedure |
Time to Complete |
Associated Costs |
1 |
Obtain an extract from the Bureau of Technical Inventory stating that the building and ownership rights in it are duly registered |
7, 14 or 30 days (depends on choice of expedited procedure) |
UAH 99,17 (7 days); UAH 81,12 (14 days); UAH 58,65 (30 days) |
2 |
The notary checks for encumbrances on the property (land and building) |
1 day |
UAH 150-200 |
3 |
Notarization of the sale agreement of the building |
1 day |
1% of transaction value of the building (state duty) + 1% of property value (State Pension Fund) + UAH 3,000 (Notary's fees) |
4 |
Evaluation of the price of the land |
14 days |
UAH 1000 |
5 |
Submit a request to obtain the State Certificate on Land Ownership under the name of the new owner |
1 day (simultaneous with procedure 6) |
no cost |
6 |
Obtain technical documentation from the Chief Administration on Land Ownership |
10 days (simultaneous with procedure 6) |
UAH 5,700 |
7 |
Obtain a certificate that the seller's rights in the land parcel are duly registered at the Center of State Land Cadastre |
10 days |
UAH 50 |
8 |
Notarization of the sale agreement (land and building) |
1 day |
1% of transaction value of the land (state duty) + Notary fees (already paid in Procedure 3) |
9 |
Submit the notarized sale agreement to the City Bureau of Technical Inventory and Registration of Property Rights in Real Estate |
3, 7 or 14 days (depends on choice of expedited procedure) |
UAH 110,83, UAH 86,26, or UAH 61,57 respectively |
10 |
Registration of the title of land plot |
54-85 days |
UAH 266 |
Indicator |
Ukraine |
Strength of legal rights index (0-10) |
9 |
Depth of credit information index (0-6) |
3 |
Public registry coverage (% of adults) |
0.0 |
Private bureau coverage (% of adults) |
10.1 |
Depth of credit information index (0-6) |
Private credit bureau |
Public credit registry |
Score |
Are data on both firms and individuals distributed? |
No |
No |
0 |
Are both positive and negative data distributed? |
Yes |
No |
1 |
Does the registry distribute credit information from retailers, trade creditors or utility companies as well as financial institutions? |
No |
No |
0 |
Are more than 2 years of historical credit information distributed? |
No |
No |
0 |
Is data on all loans below 1% of income per capita distributed? |
Yes |
No |
1 |
Is it guaranteed by law that borrowers can inspect their data in the largest credit registry? |
Yes |
No |
1 |
Score ("yes" to either public bureau or private registry) |
|
|
3 |
Indicator |
Ukraine |
Payments (number per year) |
135 |
Time (hours per year) |
657 |
Profit tax (%) |
10.4 |
Labor tax and contributions (%) |
43.3 |
Other taxes (%) |
1.8 |
Total tax rate (% profit) |
55.5 |
Tax or mandatory contribution |
Payments (number) |
Notes on Payments |
Time (hours) |
Statutory tax rate |
Tax base |
Total tax rate (% profit) |
Notes on TTR |
Pension fund contributions |
24 |
|
364 |
33.2% |
gross salaries |
37.4 |
|
Corporate income tax |
4 |
|
112 |
25.0% |
taxable income |
10.4 |
|
Work accident insurance fund contribution |
24 |
|
|
2.0% |
gross salaries |
2.2 |
|
Unemployment insurance contributions |
24 |
|
|
1.6% |
gross salaries |
1.8 |
|
Social Security contributions |
24 |
|
|
1.4% |
gross salaries |
1.6 |
|
Land tax |
12 |
|
|
UAH 1354 per square meter at 1% |
land area |
1.4 |
|
Municipal tax |
12 |
|
|
UAH 1.70 per each permanent employee per month |
number of employees |
0.2 |
|
Vehicle tax |
4 |
|
|
UAH 15.00 per 100 cubic cm |
Engine capacity |
0.2 |
|
Advertising tax |
1 |
|
|
0.5% |
advertising expenses |
0.1 |
|
Environmental taxes |
4 |
|
|
various rates |
weight of contaminants discharged |
0 |
|
Advance corporate income tax |
1 |
|
|
25.0% |
gross amount of dividends |
0 |
included in other taxes |
Value added tax (VAT) |
1 |
online filing |
181 |
20.0% |
value added |
|
not included |
Totals: |
135 |
|
657 |
|
|
55.5 |
|
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