A Fair Exchange the European Way: Make an Investment, Get Permanent Residency in Ukraine
It is impossible to create favorable investment climate in Ukraine without implementing effective investment policies. Many European countries have been actively encouraging investment by granting permanent residency or even citizenship to investors. Doing it the European way, Ukraine has been introducing legislative changes to create comfortable conditions for foreign-owned businesses.
For example, foreigners and stateless persons who invest $ 100,000 or more in their startups in Ukraine shall qualify for permanent residency in our country.
Let us look at the basic principles of this trend with Accountor Ukraine.
First of all, in order for a contribution to be considered an investment, it must be made and registered in the manner prescribed by the Cabinet of Ministers of Ukraine, and must meet certain requirements:
- The funds must be invested in a startup, (i.e., starting a new company), or contributed to the equity of a company that has been here for a while
- The amount of the investment must be the monetary equivalent of at least $ 100,000 in UAH
- Mandatory equivalent of foreign currency: i.e., the investment may be made in any currency, but the funds must undergo conversion to UAH
- The investment must be registered with the Ministry of Economy of Ukraine in accordance with the established procedure
- The intended purpose of the investment must be the economy of Ukraine, that is, the investment must be used for the economic activities, which shall bring profit to Ukraine by means of taxes
- The invested funds must be legal, i.e., must not be obtained illicitly.
The next step for obtaining a residence permit is applying to state authorities: to the embassy or consulate of Ukraine (if the investor is outside Ukraine) or to the local department of the State Migration Service (if the investor is in Ukraine). Along with the application letter, the investor must also submit a copy of the Charter and / or copies of the registered agreements (contracts) on investment activities, and a bank certificate confirming receipt of the converted currency amounting to no less than 100 (one hundred) thousand US dollars. The official residency decision waiting time is one year; however, in practice, it may take six months or less.
Having obtained the immigration permit and having arrived in Ukraine, the investors must apply for their residency document to a local office of the State Migration Service of Ukraine. The application shall be processed for another fifteen working days. After the application is processed, the investor shall receive an ID card valid for ten years. That is, every ten years, the ID card holders will have to apply for their ID to be renewed.
Getting high-quality legal assistance for this process can save the investors’ time and minimize their expenses.
At Accountor Ukraine, we have a clear understanding of the matter and a lot of experience in providing legal services and financial consulting services to non-residents.
We believe that the smallest details matter. We practice the Scandinavian approach to doing business that guarantees you confidence, accuracy and safety in any operational and investment-related activities in Ukraine.