Advantages of doing business in Ukraine

Ukraine - a territory with a huge market and a population of 44.8 million - is a potentially attractive country for almost any business. Special attention of foreign investors in Ukraine attracts agriculture, alternative energy, information technology, infrastructure and production. Many foreign companies receive high profits due to low wages in Ukraine, the geographical position of Ukraine, a new market with low competition and the rapid improvement of the business climate in the country.

Business in Ukraine has significant advantages, which include:

  • Simplified tax system. Often it is also called the “inner Ukrainian offshore”, and it is not surprising, since enterprises in the so-called “3rd group” of taxation, with a turnover of 5 million UAH per year, pay only 5% of the gross income tax.

Enterprises with a turnover above 5 million UAH often use a tax optimization scheme, working with individual entrepreneurs who are also payers of a single tax on the “3 group”.

Special and no less attractive conditions for 4 single tax groups - used specifically for agricultural producers.

Other advantages:

  • Exchange Rates. For those who come to Ukraine with a budget in dollars and euro, it is very profitable to exchange currency, because the last two years the exchange rate in the country has stabilized at a ratio of 26-27 UAH for 1 dollar, 28-29 UAH for 1 euro.
  • Cheap labour market. Doing business in Ukraine is beneficial for business owners, as the average wage in the country is about 10,000 UAH.
  • Low prices for raw materials make the processing and production of goods in Ukraine profitable.
  • Favourable location. Ukraine is the geographical centre of Europe with more than 170,000 km of roads, 22,000 km of railway lines and 13 ports. The main destination in Europe can be reached in 2 days by truck from Ukraine, which gives a competitive advantage.
  • Open a small and medium business in Ukraine is a relatively simple and quick procedure. Sale of business in Ukraine and re-registration is also made fairly quickly, unlike some other European countries.

Passive income:

  • High deposit rates in Ukraine - allow getting high passive income. In Ukraine, there are banks owned by international financial organizations with a high business reputation and reliability.
  • High-interest rates on loans in Ukraine develop a loan market with the attraction of foreign capital. This is facilitated by the improvement of the currency legislation of Ukraine, which occurred thanks to the Law “On Currency and Foreign Exchange Transactions”, which entered into force on February 7, 2019.
  • Real estate market. Now prices for real estate and land in Ukraine are much lower than in Europe. This allows you to make profitable long-term investments with small capital. In the near future, the abolition of the moratorium on the sale of agricultural land is expected. But now foreign companies that are engaged in agriculture are confidently acquiring agricultural plots for a long-term lease (50 years). Immediately after the lifting or relaxation of the moratorium, such agricultural companies will be able to take advantage of the low price of land and make good money on investments from the purchase of land.

Therefore, investing in Ukraine is profitable!

Thus, contrary to individual statements about the poor investment climate in the country and high corruption, small and medium business in Ukraine is very profitable. Proper business structuring and good legal support will help to minimize the existing risks in Ukraine.

Our experts will help you open a business in Ukraine and will provide legal support in the process of its conduct.

 

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