How to find a reliable business partner in Ukraine as a foreigner: legal advice and necessary steps

Starting a business in Ukraine requires a reliable local partner. Learn how to check a partner, avoid fraud, and establish cooperation without legal risks

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Ukraine remains an attractive jurisdiction for foreign investment—convenient geographical location, access to European and Asian markets, relatively low operating costs, and active development of IT, agriculture, and manufacturing sectors. However, for a foreigner planning to do business here, choosing a reliable local partner is an important step. The wrong choice can result not only in lost investments, but also in years of litigation. In this article, we will look at how foreign investors should approach this issue from a legal perspective.

How to find a reliable business partner in Ukraine: practical advice from lawyers

1. Conduct a comprehensive background check (due diligence) on your potential partner

Before entering into any agreements, it is advisable to thoroughly investigate the company or individual with whom you plan to partner. The legal check should cover:

● Legal status: check the extract from the Unified State Register (USR) — is the company valid, who are its ultimate beneficiaries, are there any changes in the composition of participants or management.

● Court history: the presence of court cases — both as a plaintiff and a defendant, especially in the field of commercial disputes, tax claims or bankruptcy.

● Financial discipline: check whether the company is registered as a VAT payer, has tax arrears, fines, or enforcement proceedings.

● Reputation: it is worth studying mentions of the partner in the media, reviews from other clients, and information in open databases (YouControl, OpenDataBot, etc.).

This check allows you to minimize the risks of fraud, hidden debts, or unreliable business practices.

2. Conclude all agreements exclusively in writing

In business culture, there are still cases where parties agree “verbally.” For a foreign investor, this is absolutely unacceptable, and therefore any verbal agreements should be avoided. Our lawyers recommend drawing up:

● A cooperation agreement or corporate agreement if a joint legal entity is being created;

● Articles of association of a limited liability company with a clear definition of shares, the company's management structure, and the possibility of withdrawal of each party;

● A non-disclosure agreement (NDA) — especially at the negotiation stage or in areas involving sensitive information;

● A non-competition agreement if the partner will have access to critical information or the client base.

The legal documentation should be as clear, transparent, and understandable as possible to both parties.

3. Division of responsibilities: clear boundaries of authority for each party

The documents must specify:

● Who is responsible for finances, human resources, and strategic planning;

● Who has access to bank accounts and the right to sign important documents;

● How disputes are resolved: through Ukrainian courts, arbitration, or international arbitration;

● The mechanism for one of the partners to withdraw from the project — conditions for the redemption of shares, transfer of assets, and notice period.

This will avoid misunderstandings when the business is already up and running and a conflict threatens its stability.

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4. Protection against fraud and limitation of powers

Legal practice shows that even a signed agreement does not always stop an unscrupulous partner. To minimize risks and avoid abuse:

● Introduce double signatures — for example, for financial transactions or the conclusion of significant contracts;

● Record all important decisions in writing or using electronic services (e.g., corporate email or CRM);

● Provide for liability for exceeding authority — up to and including compensation for damages.

Clearly defined limits of liability help avoid situations where one partner makes important decisions without consulting the other.

5. Language and cultural barriers: work in two languages

It is recommended that business documents be drawn up in two languages — Ukrainian and English. This will not only help avoid language barriers, but also serve as a legal safeguard in the event of a dispute: contracts usually specify which version of the document takes precedence.

In addition, differences in business culture should be taken into account. For example, in Ukraine, informal communication is often expected before signing agreements, while in Western business, the emphasis is on procedure and documentation.

6. The need for legal support at all stages

Even an experienced investor needs the advice of a Ukrainian lawyer, as legislation is constantly changing and local practices often differ from global ones.

Visit Ukraine's specialists offer professional legal assistance to foreigners planning to do business in Ukraine. Our lawyers will help you:

● check potential partners;

● prepare all necessary documents;

● provide support during negotiations and registration procedures;

● protect your interests in the event of a conflict or unforeseen circumstances.

Get legal assistance with business issues — contact Visit Ukraine experts today!

Finding a reliable partner is one of the most important steps in starting a business in Ukraine. Integrity assessment, legal formalization of agreements, limitation of powers, and legal support will help foreign investors reduce risks and ensure stable business development. Don't skimp on security — it's better to prevent a problem than to solve it later.

We remind you! In 2025, Ukraine will offer a wide range of tax incentives for foreign investors. Read about the incentives available and how to use them effectively in our previous article.

Want to know more? Read the latest news and useful materials about Ukraine and the world in the News section.

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