Operating a Business

flag Ukraine Ukraine: Operating a Business

In this page: Legal Forms of Companies | The Active Population in Figures | Working Conditions | The Cost of Labour | Management of Human Resources

 

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.
 

Business Directories

Financial Information Directories
Dun & Bradstreet - Worldwide directory with financial information on businesses

To go further, check out our service Business Directories.


 

Professional Associations

General Professional Associations
UCCI - Ukrainian Chamber of Commerce and Industry

To go further, check out our service Professional Associations.


 

Business Setup Procedures

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

Source: Doing Business - Latest available data.

 
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.
Business Support Department
 

Recovery Procedures

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

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The Active Population in Figures

201820192020
Labour Force 20,417,45920,207,72819,461,889

Source: International Labour Organization, ILOSTAT database

 
201720182019
Total activity rate 66.48%66.58%66.64%
Men activity rate 72.99%72.96%72.86%
Women activity rate 60.44%60.65%60.83%

Source: International Labour Organization, ILOSTAT database

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

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Working Conditions

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
55 for women and 60 for men. For women, it is gradually being increased to 60 since 2011. It will reach 60 in 2021.
Child Labour and Minimum Age For Employment
The minimum working age is 16.

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The Cost of Labour

Pay

Minimum Wage
UAH 6,500 per month since 1st January 2022 (official governmental sources)
Average Wage
Gross average monthly wage: UAH 14,577 (source: State Statistics Service, January 2022).
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.
 

Social Security Costs

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%
Competent Organization
Ministry of Labour and Social Policy (in Ukrainian)

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Management of Human Resources

 

Recruitment

Method of Recruitment
Some agencies impose their own recruitment methods and others hire intermediaries.
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
Work in Kiev
 

The Contract

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.

Breach of Contracts

  • Retirement
Retirement age is set at 60 years for men and 55 years for women. For women, the retirement age has been gradually increasing to 60 since 2011; it will reach 60 in 2021. Retirement can be premature in certain sectors.
  • Dismissals
An employer can dismiss an employee for continued bad performance, serious fault, unjustifiable absence of more than 3 hours or prolonged illness of more than four months and company economic problems. An employee can resign with two-weeks notice.
Labour Laws
Labor Law
Employement Law
Consult Doing Business Website, to obtain a summary of the labor regulations that apply to local entreprises.
 

Dispute Settlement

 

Conciliation Process

  • Legal Framework
The law that deals with contentious matter between employers and employees in the Ukraine is the International Commercial Arbitration Act.
  • 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.
 

Judicial Structures

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

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

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Latest Update: November 2022