Business Administration in Ukraine

Overview by Globlatrade.net:

Setting Up a Company

Legal Business Entities

Types of Companies and Capital (Max/Min) Number of Partners/Shareholders and Liability Registration Fees
Private Limited Company
 
 
The minimum authorized capital required to set up a Private Limited Company is 100 times the minimum monthly wage, i.e. approximately 4,100 USD today.
Minimum 2
 
 
For certain important decisions, a majority of more than 50% of the votes is required, for example for the expulsion of a partner. However, all other decisions are adopted by simple majority.
Authentication of the company's premises (if necessary): UAH 350. Open a bank account for initial capital: UAH 0-100. Register at the Registration Office: UAH 170. Register at the State Statistics Committee: UAH 25.94. Register VAT at the State Tax Authority and obtain a VAT number: UAH 17. Approval of Ministry of Internal Affairs to prepare a company seal: UAH 81. Prepare a seal: UAH 60-180.
Public Limited Company
 
 
1,250 times the minimum monthly wage (which is the equivalent today of about 51,000 USD).
Minimum 2
 
 
The vote takes place according to the principle of "one share, one vote". For certain important decisions (for example the modification of the company articles), the agreement of three quarters of the shareholders is necessary. For less important decisions, a simple majority is enough.
Authentication of the company's premises (if necessary): UAH 350. Open a bank account for initial capital: UAH 0-100. Register at the Registration Office: UAH 170. Register at the State Statistics Committee: UAH 25.94. Register VAT at the State Tax Authority and obtain a VAT number: UAH 17. Approval of Ministry of Internal Affairs to prepare a company seal: UAH 81. Prepare a seal: UAH 60-180.
 
Business Setup Procedures
A new business, with foreign participation, has to be registered with the administration of the district where its headquarters will be set up.
Besides documents concerning the company setting up, for registration purposes, the foreign partner must provide a whole list of documents and notably a registration certificate, a Ukrainian bank certificate garanteeing that the company can honor its commitments. These documents must be authenticated by a notary, legalized by the Ministry of Foreign Affairs, and the Consulate of Ukraine, all in the country of origin of the company setting up, and translated into Ukrainian.
The time for legal registration is currently 5 working days after the sending in of the whole file. The foreign investment itself must be registered within 3 working days of the contribution deposit.
The Competent Organization
The formation of a company with foreign shareholding has to be registered with the local administration where the headquarter of the company being formed is situated.
It is also necessary to register with the Minisry of Foreign Relations and Trade.

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Working Conditions

Legal Weekly Duration
44 hours for services and trade and 48 hours for industry.
Retirement Age
55 for women and 60 for men.
Working Contracts
Employment contracts are regulated by law, collective agreements and individual negotiations. An employee is on probation of 1 to 3 months. During this period, the employee can be dismissed or confirmed.  There are three employement contracts: Permanent, temporary and provisional.

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Cost of Labor

Minimum Wage
669 UAH (84 USD). It should be noted that salaries have to be paid twice a month: half the salary every two weeks.
Average Wage
Average monthly gross earnings in Ukraine is UAH 2,083 (USD 268).
Social contributions
Social Security Contributions Paid By Employers: 47.5 %.
Social Security Contributions Paid By Employees: 1.5 %.

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Social Partners

Social Dialogue and Involvement of Social Partners
The Federation of Ukrainian Trade Unions, which unites 44 unions and 26 regional associations, brings together more than 10 million members.
Unions
Ukrainian Trade Union Federation
List of Ukrainian trade unions
Unionization Rate
The Ukraine has nearly 15 million unions for an active population of 22 million people.
Labor Regulation Bodies
Ministry of Labor and Social Policy

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  • IBobserver newspaper

    IBobserver is the first specialized newspaper in Ukraine and CIS region, devoted to the international trade development

    IBcontacts on 17 Feb 2011 related to Business Administration in Ukraine

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