Ukraine: Operating a Business

Legal Forms of Companies

Tovarystvo z Obmezhenoyu Vidpovidalnistyu ou TVO (Private Limited Company): Number of partners: Minimum 1, no maximum.
Capital (max/min): No minimum capital required.
Shareholders and liability: Limited to the value of their contribution.
Vidkryte akstionerne tovarystvo (Joint-stock company): Number of partners: Minimum 1, no maximum.
Capital (max/min): Minimum: 1250 times the minimum wage at the date of registration
Shareholders and liability: Limited to the value of their contribution.
Limited partnership: Number of partners: Minimum 2, no maximum.
Capital (max/min): No minimum capital requirement.
Shareholders and liability: Liability of the active partners is unlimited, that of sleeping partners is limited to the value of their contribution.
General partnership: Number of partners: Minimum 2.
Capital (max/min): No minimum capital requirement.
Shareholders and liability: Liability is unlimited.

Setting Up a Company	Ukraine	Eastern Europe & Central Asia
Procedures (number)	6.00	5.26
Time (days)	6.50	11.78

Source: The World Bank - Doing Business, Latest data available.

The Competent Organisation: 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 Ministry of Economy.
For Further Information: Consult Doing Business Website, to know about procedures to start a Business in Ukraine.

Dun & Bradstreet - Worldwide directory with financial information on businesses

Bankruptcy Laws: The law on the restitution of the debtor's solvency or the declaration of bankruptcy came into force in January 2000.

	2018	2019	2020
Labour Force	20,417,459	20,207,728	19,461,889

For Further Information About the Labour Market: COE, Labor migration
Statistics on the Ukrainian labor market

Opening Hours
Legal Weekly Duration: 44 hours for services and trade and 48 hours for industry.
Maximum Duration: It is possible to go over the 40 hours a week for some professions: 44 hours for services and shops and 48 hours for industry. 120 hours per year of overtime is the limit, except in certain categories (managers and other).

Working Rest Day: Saturday and Sunday are the weekly days of rest.
Paid Annual Vacation: The Ukranians have a right to 24 days of paid vacation per year, plus 13 days public holidays, which are not working days.
Retirement Age: 60 years old.
Child Labour and Minimum Age For Employment: The minimum working age is 16.

Minimum Wage: The national monthly minimum wage is UAH 8,647 (approx. EUR 169) as established by the State Budget of Ukraine and enforced by the State Labour Service.
Average Wage: The average monthly wage is approximately 24,000 UAH in Ukraine (approx. 470 EUR).
Other Forms of Pay
Pay For Overtime: In theory, overtime work can only be imposed in a "case of emergency". Overtime, (not more than 120 hours per year) is paid double.
Pay For Rest Days Worked: If the employee works during a day of rest, he is paid double.
Pay For Night Hours: The night shift is remunerated according to the current collective convention and cannot be below the 120% of the daily rate.
For more information, refer to the report on the Regulation of Labor and Employment in the Ukraine published by the Volkov Koziakov & Partners.
Pay For Overtime at Night: Night overtime is paid double.

The Areas Covered: Accidents, illnesses, retirement, death, disability, maternity, medical care, family and child benefits and unemployment benefits.
Contributions: Contributions Paid By the Employer: 22% of the gross remuneration (capped at 15 times the minimum salary).
Contributions Paid By the Employee: 0%

Recruitment Agencies: There are different types of recruitment agencies in the Ukraine, either specialized in a precise area or targeted at temporary employment. Most of them have their own websites.
Recruitment Websites: Work in Ukraine
Work in Kiev

Type of Contract: Employment contracts are regulated by law, collective agreements and individual negotiations. Employees have a probation period that can last between 1 and 3 months. There are three employment contracts: Permanent, temporary and provisional.

Labour Laws: Labor Law
Consult Doing Business Website, to obtain a summary of the labor regulations that apply to local entreprises.

Procedure: In the case of a dispute. the parties can go to the Ukrainian Tribunal of Commerce or an international court, by common agreement. Since 1994, parties can lodge an appeal with an international commercial arbitration court, which is a lot more advantageous.

Competent Legal Body: The body in charge of contetious matters between employers and employees in the Ukraine is the International Commercial Arbitration Court.

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.
Unionisation Rate: The Ukraine has nearly 15 million unions for an active population of 22 million people.
Labour Unions: Ukrainian Trade Union Federation
Regulation Bodies: Ministry of Social Policy

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