Many entrepreneurs are interested how the registration of foreign investments in the Ukrainian company is done. And it is a matter of fact that Ukrainian business space is difficult to call stable nowadays.
Permanent changes in legislation, failure of officials to obey the law, possibility of ambiguous interpretation of some laws – all these factors do not help foreign investors feel comfortable in our economic environment.
Foreign investments: do they have to be registered?
First, it should be noted that the invitation foreigners to Ukraine to for financing business projects does not mean compulsory registration of investments. The legislation clearly and unambiguously says that is legal to do without this procedure.
On the other hand, an investor who does not have official status is not protected from many risks and in fact has no security guarantees for his capital from the state.
Thus, careful reading of part 3 of article 395 of the Commercial Code of Ukraine let us conclude that a foreign investor without official registration loses the following rights:
- The benefits provided by law;
- The guarantees for the return of illegally seized funds and assets;
- Protection from unlawful actions by officials and public institutions;
- Compensation for certain types of losses;
- Protection and guarantees when sending funds received as a result of investment;
- Guarantees in the event of termination of investment activity.
Thus, registration of a foreign citizen as an investor Ukrainian company gives many advantages in comparison with unofficial status. This allows him to provide appropriate security of his money, and get all the relevant guarantees from the state.
The rules and procedure of registration of foreign investments
Let us look in more detail what the law says our state on the registration of foreigners in Ukraine as investors. Initially, everything may seem extremely simple – the law quite clearly outlines the necessary steps of the foreign investment registration procedure.
Three legal acts clearly describe the procedure and rules for registration of foreign citizens-investors. They are the Law “On Foreign Investment”, the Cabinet of Ministers of Ukraine Regulation “On approval of state registration (re-registration) of foreign investment and its cancellation”, and the Instruction on the state registration of foreign investments.
The entire procedure contains three stages:
- Joining investment funds to the share capital of the company;
- Getting confirmation of tax authorities;
- Registration of the investment.
But, unfortunately, bureaucracy often breaks the dreams of investors. That is why “Bachynskyy, Kolomiets and partners” is always ready to help everyone to save nerves.
