How to protect your investments in Ukraine: legal support for foreign investors from A to Z

Legal support is the key to safe investing in Ukraine for foreigners. Learn how to protect your investments, optimize taxes, and avoid legal risks with the support of Visit Ukraine business lawyers.

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Ukraine is increasingly opening up to foreign capital. Agriculture, IT, industry, and the enormous potential for post-war reconstruction create favorable conditions for capital investment. However, along with opportunities, investors face bureaucratic, tax, and legal challenges. Reliable legal support is a key tool for minimizing risks and ensuring business stability in the Ukrainian context.

Legal support for foreign investors in Ukraine: what you need to know

1. Forms of entry for investors into the Ukrainian market: how to choose the right start

Foreign investors have several strategic options for entering the Ukrainian market. The most common are:

● Establishing a legal entity in Ukraine, most often a limited liability company (LLC) wholly owned by foreign capital;

● Acquiring corporate rights in an existing Ukrainian company;

● Entering into investment agreements with local partners;

● Franchising, agency or distribution agreements that do not require the creation of a separate legal entity.

Each format has its own legal nuances: from the method of taxation to the level of liability of the parties. A lawyer helps investors choose the most profitable and safest option, taking into account the industry, investment volumes and strategic goals.

2. Business registration: how to open a company?

Registering a company as a foreigner in Ukraine requires compliance with clear procedures:

● notarized translation of your passport and other documents;

● obtaining an identification code;

● preparation of the charter, decision on establishment, registration of a legal entity;

● opening a bank account;

● registration with the tax authorities.

Most of the steps can be carried out by a lawyer on your behalf, which significantly saves time and reduces the risk of errors.

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3. Legal support of contractual relations: how to avoid risks?

No contract should be signed without legal review. Among the most important documents are asset purchase agreements, contracts with suppliers and contractors, and investment memoranda.

Key provisions that investors should pay attention to:

● clearly defined obligations of the parties;

● penalties for breach of terms;

● mechanisms for terminating cooperation;

● arbitration clauses (including international ones).

A competent lawyer also conducts due diligence on potential partners to identify hidden risks.

4. Tax planning: pay less — legally

Tax strategy is another area of risk. Foreign investors should avoid double taxation, taking into account the conventions signed by Ukraine.

A lawyer, together with a tax advisor, helps to:

● choose the optimal taxation system (general, simplified);

● structure asset ownership correctly;

● ensure transparent financial reporting;

● avoid unnecessary VAT, income tax, or dividend repatriation charges.

Transfer pricing and currency control in international transfers require special attention.

5. Dispute resolution: local and international protection mechanisms

In the event of a dispute, a foreign investor has several legal protection mechanisms at its disposal:

● appealing to the commercial or administrative courts of Ukraine;

● international arbitration (e.g., ICC, LCIA, ICSID), if provided for in the contract;

● filing complaints with international organizations or the ECHR, especially in cases of violation of rights by the state.

An experienced lawyer with procedural skills can effectively represent the investor's interests both in court and in pre-trial proceedings.

6. Legislative guarantees for investors

Ukraine officially guarantees equal rights for domestic and foreign investors. Under current legislation, a foreigner has the right to:

● freely dispose of investments;

● repatriate profits in foreign currency;

● receive compensation in the event of expropriation;

● enjoy stable tax conditions for at least 10 years.

A separate mechanism — the law on state support for investment projects (so-called “investment grants”) — allows projects worth more than €20 million to receive state assistance, ranging from land allocation to infrastructure construction.

A successful investment is not only a financial decision, but also a legally sound strategy. Without professional support, it is easy to lose money due to a simple mistake or legal oversight.

That is why Visit Ukraine offers individual legal advice and comprehensive support to foreigners who plan to invest or start a business in Ukraine. From choosing the form of ownership to protection in court, our lawyers ensure maximum protection and transparency at every stage.

Contact us now for advice to be confident in your actions and receive professional support!

Reminder! Even under the current conditions, foreign investors choose Ukraine for business development and obtaining a residence permit. Read about the most popular areas, how to make the right investment, and why legal support is critical at every stage in our previous article.

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