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DOING
BUSINESS
IN UKRAINE
(progress in 2018)
MINISTRY OF ECONOMIC
DEVELOPMENT AND TRADE
OF UKRAINE
Starting a Business
	 Reform #1: decreased time to complete the
registration process at the Registration Office
	 Now registration takes up to 1 day (in contrast to 3
days last year). Registration may also be made on-
line
The Law of Ukraine on Amendments to the Law of Ukraine
on State Registration of Legal Entities and Natural Persons -
Entrepreneurs and Certain Other Legislative Acts of Ukraine
on Decentralization of Functions on State Registration of
Legal Entities, Natural Persons - Entrepreneurs and Civil
Organizations of 26/11/2015
http://zakon3.rada.gov.ua/laws/show/835-19/paran6#n6
The Law of Ukraine on Amendments to Certain Legislative
Acts of Ukraine on Use of Seals by Legal Entities and Private
Entrepreneurs of 03/23/2017
http://w1.c1.rada.gov.ua/pls/zweb2/
webproc4_1?pf3511=58365
	 Reform #2: state officials face a fine in case
they require any document on behalf of a
private entity to be sealed
	 Private companies are no longer required to have
a seal
-2
days
-200
UAH
-1procedure
-1
day
Dealing with Construction Permits:
Measure of Efficiency
15%
7%
5% 1.8%
-1procedure
-19
day
	 Reform #1: a contribution
to the city social and
engineering-transport
infrastructure in Kyiv is
decreased to 2% in contrast
to 10% last year
	 Share of costs for procedures in
construction costs
	 Reform #2: establishment
of an on-line public
procurement portal Prozorro
significantly decreased prices
for technical supervision
services. Now the price for
such services usually is not
higher than 1.8% of the
construction costs
	 Share of costs for procedures in
construction costs
	 REFORM #3: DL #5587
adopted by the parliament,
expected to be signed by the
President in May: cancellation
of the requirement to obtain
technical conditions for fire
and technological safety
http://kievcity.gov.ua/files/2016/11/30/
RKMR-411-1415.pdf
http://w1.c1.rada.gov.ua/pls/zweb2/
webproc4_1?pf3511=60794
Dealing with Construction Permits:
Measure of Quality
+1
score
+1
score
	 Reform #1: an architect
who designed the plans for
the building, and engineer
who conducts the technical
inspections are required to
have a liability insurance
	 REFORM #2: to be implemented
by the end of May: a government
agency (State Inspectorate for
Architecture and Construction
Control will be legally mandated
to conduct risk-based
inspections during construction)
	 Reform #3: to be
implemented by end
of May: An architect
who designed the plans
for the building, and
engineer who conducts
the technical inspections
will be required to have a
university degree
Standards of Self-Regulating
Organizations of Architects and
Engineers
The decree of the CMU on the Approval of
Criterias for the Risk-Based Inspecttions in
the Area of Construction Activity
http://www.dabi.gov.ua/wp-content/
uploads/2016/10/Proekt-postanovy-
Kabinetu-Ministriv-Ukrayiny.pdf
Draft Law on Amendments to
Certain Legislative Act of Ukraine
on Improvement of Conditions for
Construction Activity (the draft
is axpected to get the President’s
assent in May)
http://w1.c1.rada.gov.ua/pls/zweb2/
webproc4_1?pf3511=60794
Getting Electricity
	 REFORM #1: a utility shall pay a
compensation to customers if outages
exceed 24 hours
	 Reform #2: a connection of the warehouse
with the subscribed capacity of 140 kVA will
be simplified and streamlined
+1
score
-200
days
The Decree of the National Comission on State Regulation
of Energy and Utilities on Adoption of the Procedure for
Compliance with Standards for the Quality of the Electricity
Supply of 10/18/16
http://zakon2.rada.gov.ua/laws/show/v1841874-16
Law of Ukraine on Electricity Market of Ukraine
http://w1.c1.rada.gov.ua/pls/zweb2/
webproc4_1?pf3511=58829
Registering Property:
Measure of Efficiency
	 Reform #1: an assessment
of the price of the land plot
is no longer required to
notarize the agreement
	 Reform #2: a notary
usually has a direct access
to the State Land Cadastre.
The extract from the State
Center of the Land Cadastre
is no longer required for the
transaction
	 Reform #3: a notary
no longer has to register
ownership rights for seller
in the new State Register
of Property Rights to
Immovable Property-1000
UAH
-1procedure
-10
day
-68
UAH
-1procedure
-10
day
Letter of the Ministry of Justice of
Ukraine of 12/29/2016 № 47047/13626-
0-4-16/8.3
The Law of Ukraine on State Registration
of Titles to the Real Estate and
Encumbrances of 11/26/2015
http://zakon0.rada.gov.ua/rada/
show/834-19/paran6#n6
The Decree of the Cabinet of Ministers
of Ukraine on Certain Issues of Access of
Notaries to the State Land Cadastre of
06/24/457
http://www.kmu.gov.ua/control/uk/
cardnpd?docid=248301172
-1
step
Registering Property:
Measure of Quality
+0,5
score
+0,5
score
	 Reform #1: a specific and separate
mechanism for filing complaints about a
problem that occurred at the agency in
charge of immovable property registration
is in place
	 Reform #2: to be implemented by the
end of May: an official statistics tracking the
number of transactions at the immovable
property registration agency will be made
publicly available
The Law of Ukraine on State Registration of Titles to the Real
Estate and Encumbrances of 11/26/2015
http://zakon0.rada.gov.ua/rada/show/834-19/paran6#n6
Protecting Minority Investors
	 Reform: a Buyer must immediately disclose the
transaction described by the Methodology to the
public
+1
score
The Decision of the National Securities and Stock Market Comission
on Adoption of Amendments to the Regulation on the Disclosure of
Information by Issuers of Securities of 04/12/2016
http://zakon2.rada.gov.ua/laws/show/z0705-16
Paying Taxes
38,19%
22%
	 Reform: a Unified Social Contribution was
decreased to 22% (in contrast to 38,19% in 2015)
The Law of Ukraine on Amendments to the Tax Code of Ukraine
and Certain Other Legislative Acts of Ukraine to Ensure a Balance of
Budgetary Revenues in 2016 of 12/24/2015
http://zakon3.rada.gov.ua/laws/show/909-19/paran5#n5
Trading Across Borders
	 Reform: a List of Dual-Use Goods was decreased.
It doesn’t contain any goods with the code
HS 8708. Verification from the State Service of
Export Control of Ukraine on the auto-parts is not
required
-1procedure
-1document
The Decree of the Cabinet of Ministers of Ukraine on Amendments to
the Anexes to the Procedure for State Control over International Trade
in Dual Use Goods of 03/10/2017
http://zakon0.rada.gov.ua/laws/show/184-2017-п
Enforcing Contracts
	 Reform: to be implemented next year: a system
of private bailiffs was established which will make
an enforcement procedure more efficient and fast
-3
months
http://w1.c1.rada.gov.ua/pls/zweb2/webproc4_1?pf3511=56267
Our goal
DRAFT LAW OF UKRAINE
”ON AMENDMENTS TO SOME LEGISLATIVE ACTS OF
UKRAINE REGARDING IMPROVEMENT OF THE INVEST
CLIMATE IN UKRAINE”
TOP-40 IN DOING BUSINESS 2019
41

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Doing Business in Ukraine (progress in 2018)

  • 1. DOING BUSINESS IN UKRAINE (progress in 2018) MINISTRY OF ECONOMIC DEVELOPMENT AND TRADE OF UKRAINE
  • 2. Starting a Business Reform #1: decreased time to complete the registration process at the Registration Office Now registration takes up to 1 day (in contrast to 3 days last year). Registration may also be made on- line The Law of Ukraine on Amendments to the Law of Ukraine on State Registration of Legal Entities and Natural Persons - Entrepreneurs and Certain Other Legislative Acts of Ukraine on Decentralization of Functions on State Registration of Legal Entities, Natural Persons - Entrepreneurs and Civil Organizations of 26/11/2015 http://zakon3.rada.gov.ua/laws/show/835-19/paran6#n6 The Law of Ukraine on Amendments to Certain Legislative Acts of Ukraine on Use of Seals by Legal Entities and Private Entrepreneurs of 03/23/2017 http://w1.c1.rada.gov.ua/pls/zweb2/ webproc4_1?pf3511=58365 Reform #2: state officials face a fine in case they require any document on behalf of a private entity to be sealed Private companies are no longer required to have a seal -2 days -200 UAH -1procedure -1 day
  • 3. Dealing with Construction Permits: Measure of Efficiency 15% 7% 5% 1.8% -1procedure -19 day Reform #1: a contribution to the city social and engineering-transport infrastructure in Kyiv is decreased to 2% in contrast to 10% last year Share of costs for procedures in construction costs Reform #2: establishment of an on-line public procurement portal Prozorro significantly decreased prices for technical supervision services. Now the price for such services usually is not higher than 1.8% of the construction costs Share of costs for procedures in construction costs REFORM #3: DL #5587 adopted by the parliament, expected to be signed by the President in May: cancellation of the requirement to obtain technical conditions for fire and technological safety http://kievcity.gov.ua/files/2016/11/30/ RKMR-411-1415.pdf http://w1.c1.rada.gov.ua/pls/zweb2/ webproc4_1?pf3511=60794
  • 4. Dealing with Construction Permits: Measure of Quality +1 score +1 score Reform #1: an architect who designed the plans for the building, and engineer who conducts the technical inspections are required to have a liability insurance REFORM #2: to be implemented by the end of May: a government agency (State Inspectorate for Architecture and Construction Control will be legally mandated to conduct risk-based inspections during construction) Reform #3: to be implemented by end of May: An architect who designed the plans for the building, and engineer who conducts the technical inspections will be required to have a university degree Standards of Self-Regulating Organizations of Architects and Engineers The decree of the CMU on the Approval of Criterias for the Risk-Based Inspecttions in the Area of Construction Activity http://www.dabi.gov.ua/wp-content/ uploads/2016/10/Proekt-postanovy- Kabinetu-Ministriv-Ukrayiny.pdf Draft Law on Amendments to Certain Legislative Act of Ukraine on Improvement of Conditions for Construction Activity (the draft is axpected to get the President’s assent in May) http://w1.c1.rada.gov.ua/pls/zweb2/ webproc4_1?pf3511=60794
  • 5. Getting Electricity REFORM #1: a utility shall pay a compensation to customers if outages exceed 24 hours Reform #2: a connection of the warehouse with the subscribed capacity of 140 kVA will be simplified and streamlined +1 score -200 days The Decree of the National Comission on State Regulation of Energy and Utilities on Adoption of the Procedure for Compliance with Standards for the Quality of the Electricity Supply of 10/18/16 http://zakon2.rada.gov.ua/laws/show/v1841874-16 Law of Ukraine on Electricity Market of Ukraine http://w1.c1.rada.gov.ua/pls/zweb2/ webproc4_1?pf3511=58829
  • 6. Registering Property: Measure of Efficiency Reform #1: an assessment of the price of the land plot is no longer required to notarize the agreement Reform #2: a notary usually has a direct access to the State Land Cadastre. The extract from the State Center of the Land Cadastre is no longer required for the transaction Reform #3: a notary no longer has to register ownership rights for seller in the new State Register of Property Rights to Immovable Property-1000 UAH -1procedure -10 day -68 UAH -1procedure -10 day Letter of the Ministry of Justice of Ukraine of 12/29/2016 № 47047/13626- 0-4-16/8.3 The Law of Ukraine on State Registration of Titles to the Real Estate and Encumbrances of 11/26/2015 http://zakon0.rada.gov.ua/rada/ show/834-19/paran6#n6 The Decree of the Cabinet of Ministers of Ukraine on Certain Issues of Access of Notaries to the State Land Cadastre of 06/24/457 http://www.kmu.gov.ua/control/uk/ cardnpd?docid=248301172 -1 step
  • 7. Registering Property: Measure of Quality +0,5 score +0,5 score Reform #1: a specific and separate mechanism for filing complaints about a problem that occurred at the agency in charge of immovable property registration is in place Reform #2: to be implemented by the end of May: an official statistics tracking the number of transactions at the immovable property registration agency will be made publicly available The Law of Ukraine on State Registration of Titles to the Real Estate and Encumbrances of 11/26/2015 http://zakon0.rada.gov.ua/rada/show/834-19/paran6#n6
  • 8. Protecting Minority Investors Reform: a Buyer must immediately disclose the transaction described by the Methodology to the public +1 score The Decision of the National Securities and Stock Market Comission on Adoption of Amendments to the Regulation on the Disclosure of Information by Issuers of Securities of 04/12/2016 http://zakon2.rada.gov.ua/laws/show/z0705-16
  • 9. Paying Taxes 38,19% 22% Reform: a Unified Social Contribution was decreased to 22% (in contrast to 38,19% in 2015) The Law of Ukraine on Amendments to the Tax Code of Ukraine and Certain Other Legislative Acts of Ukraine to Ensure a Balance of Budgetary Revenues in 2016 of 12/24/2015 http://zakon3.rada.gov.ua/laws/show/909-19/paran5#n5
  • 10. Trading Across Borders Reform: a List of Dual-Use Goods was decreased. It doesn’t contain any goods with the code HS 8708. Verification from the State Service of Export Control of Ukraine on the auto-parts is not required -1procedure -1document The Decree of the Cabinet of Ministers of Ukraine on Amendments to the Anexes to the Procedure for State Control over International Trade in Dual Use Goods of 03/10/2017 http://zakon0.rada.gov.ua/laws/show/184-2017-п
  • 11. Enforcing Contracts Reform: to be implemented next year: a system of private bailiffs was established which will make an enforcement procedure more efficient and fast -3 months http://w1.c1.rada.gov.ua/pls/zweb2/webproc4_1?pf3511=56267
  • 12. Our goal DRAFT LAW OF UKRAINE ”ON AMENDMENTS TO SOME LEGISLATIVE ACTS OF UKRAINE REGARDING IMPROVEMENT OF THE INVEST CLIMATE IN UKRAINE” TOP-40 IN DOING BUSINESS 2019 41