Legal Support for Foreign Investments in Ukraine
Investment by foreign citizens in Ukraine is a relevant and important topic that reflects the country’s economic development and contributes to attracting foreign investment. The legal aspects of this process are crucial as they determine the rules and conditions under which foreign investors can operate in the Ukrainian market. Foreign investment can be directed towards various sectors of the economy, from industry and trade to services and innovation.
Who Can Be Foreign Investors in Ukraine
In Ukraine, foreign investors can be citizens of other countries, foreign companies, and international organizations. The recognition of the status of a foreign investor is based on the norms specified in the Law of Ukraine “On Foreign Investments”.
Individuals who are not citizens of Ukraine may engage in investment activities in the country in accordance with the law and established rules. Additionally, foreign companies and enterprises can also invest in Ukraine by organizing their activities and interacting with local businesses.
International organizations, such as funds, agencies, or international financial institutions, can also play the role of foreign investors in Ukraine, promoting project development and economic growth.
Types of Foreign Investments
Foreign investments are monetary or material contributions from other countries to the economy of Ukraine. They can take various forms and structures, depending on the nature and objectives of the investor:
- Direct foreign investments. The investor gains control or participation in a company by purchasing shares or becoming a participant.
- Portfolio foreign investments. The investor buys securities (stocks, bonds) or places money in deposits without gaining control over the company.
- Infrastructure projects. Money is invested in large construction projects, such as energy or transportation.
- Technological and scientific research investments. They involve financing the development of new technologies and scientific research.
- Real estate investments. This involves the acquisition of real estate for development or leasing.
- Sectoral investments. Financial investments in specific sectors, such as food industry or pharmaceuticals.
What Does Legal Support for Investments Include
Legal support for investments is a complex of legal services aimed at the effective and secure implementation of investment operations. Services provided by experts of the legal company Dextra Law include:
- Development of an investment strategy in terms of financial components and investor protection;
- Mediation and negotiation of the best investment terms (risk identification);
- Provision of NDA investment agreements;
- Development of contracts and agreements;
- Conducting due diligence audits and preparation for their passage;
- Foreign structuring of investment transactions;
- Compliance with corporate law requirements;
- Representation in government bodies;
- Post-investment support.
What Documents Are Usually Required?
For foreign investments in Ukraine, various documents are required to ensure legal clarity, protection of interests, and compliance with legislative requirements:
- Documents confirming the status of a foreign investor: copies of passports or other documents of persons making investments, certificates of registration of foreign investor companies.
- Documents regulating the terms and obligations of parties, investment volume, investor and company rights and obligations;
- Documents on corporate structure;
- Financial statements and other documents indicating the financial condition of the investor;
- Due diligence documents required for assessing the company’s condition and investment risks;
- Confidentiality agreements ensuring non-disclosure of confidential information;
- Documents related to investment taxation and income;
- Shareholder agreements, stock or asset purchase agreements, ownership agreements, etc.
Some documents may require notarization to have legal force. If investments are related to specific types of activities, licenses or permits from relevant regulatory bodies may be required.
Cooperation with Dextra Law in investment has several advantages: professional expertise, a wide range of services, international experience, an individual approach, post-investment support, and numerous connections in the business community.
