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Ukraine offers a compelling investment landscape for businesses seeking strategic expansion in Europe. Its geographic positioning as the gateway to EU markets, combined with abundant natural resources and a highly skilled labour force, makes Ukraine a dynamic emerging market. As the country continues to integrate with European institutions, global trade networks, and develop key economic sectors, it offers significant opportunities for companies looking to establish a presence in a rapidly evolving business environment.
As one of Europe’s largest countries by area, Ukraine remains one of the world’s top exporters of grain and sunflower oil, with agriculture employing a significant portion of the population, having also strong industrial and technological potential. Despite the ongoing challenges related to security and reform implementation, the country continues to advance in regulatory alignment with the EU, digital transformation, and anti-corruption measures. Key investment sectors include agriculture, energy (especially renewables), IT, infrastructure, and manufacturing. With ongoing support from international financial institutions and a commitment to economic modernization, Ukraine remains a dynamic and resilient market for long-term investment.
As Ukraine navigates its current challenges while pursuing the development opportunities presented, some of the country’s industry sectors remain strong. These include agriculture, energy and natural resources, IT, manufacturing, defense tech and infrastructure development. Metal production and chemicals are also one of the leading industries in Ukraine.
Ukraine is one of the world’s largest producers and exporters of agricultural products, such as grains, sunflower oil, and poultry. The fertile soil and favourable climate make it a key player in the global agricultural market. There is strong potential for growth in agribusiness and food processing. Ukraine also has significant energy resources, particularly natural gas, coal, and renewable energy potential. Ukraine holds significant reserves of critical minerals essential for high-tech industries and global supply chains. For instance, it holds approximately 6% of the world’s graphite reserves, a critical material for battery production and other industrial applications. These resources have attracted substantial international interest and may present a unique opportunity for investment in this sector.
The IT sector is one of the fastest-growing industries in Ukraine, known for its highly skilled software developers and competitive pricing. Ukraine has become a popular outsourcing hub for global tech companies. With a rapidly developing startup ecosystem, a large pool of qualified developers, and competitive costs, the IT sector is one of the most attractive for foreign investment. The industry presents excellent opportunities in software development, AI, and cybersecurity. Ukraine has a well-established industrial base, particularly in machinery, chemical products, and manufacturing. Most promising areas include agri-machinery, defense vehicles, and e-mobility components. The sector is supported by a large workforce and has growing potential for foreign partnerships and investment.
Despite the ongoing war, Ukraine remains committed to modernizing its infrastructure, with a focus on transportation, logistics, and real estate. Reconstruction efforts and long-term development plans present significant opportunities for foreign firms involved in construction, engineering, and infrastructure projects, particularly as international support and investment play a crucial role in rebuilding and enhancing the country’s economic resilience.
Even though the ongoing war has caused a significant decline in the available workforce, some of the industries have still managed to remain strong. These industries include services, wholesale trade, manufacturing, finance and construction.
Ukraine offers a range of investment incentives to attract foreign direct investment and stimulate economic growth. These incentives are designed to support various sectors and projects, providing benefits such as tax exemptions, financial support, and simplified regulatory procedures. Below are some of the key investment incentives available when doing business in Ukraine:
Under the Law of Ukraine “On State Support for Investment Projects with Significant Investments,” the government provides substantial support for large-scale projects that meet specific criteria. Eligible projects can receive state support of up to 30% of the investment amount in various forms, including:
To qualify, projects must involve investments exceeding €12 million, create at least 10 new jobs with wages 15% higher than the regional average, and be implemented within five years in designated sectors such as processing industries, waste management, transportation, logistics, education, healthcare, science and tech, art, culture, tourism, sports and more.
Ukraine promotes the development of industrial parks to attract investments in processing industries, research and development, and information technology. Participants in these parks may benefit from:
These incentives aim to create a favorable environment for businesses, fostering economic development and innovation.
To boost the information technology (IT) sector, Ukraine has established the “Diia City” virtual economic zone, offering:
This regime is designed to attract IT companies and professionals, fostering a competitive and innovative digital economy.
Ukraine offers targeted incentives in priority sectors to stimulate growth and development:
These sector-specific incentives aim to harness Ukraine’s economic potential and attract investments in key areas. By offering these comprehensive incentives, Ukraine strives to create a conducive environment for investors, driving economic growth and integration into global markets.
The most common legal forms for doing business in Ukraine include:
A limited liability company is an organization, a business entity, the authorized capital of which is divided into shares, the size of which is established by the company’s charter. The essence of a limited liability company is that the participants of such a company are liable for its obligations to a limited extent. The name limited liability company does not mean limiting the liability of the company as a business entity to certain amounts of property or funds, it is about limiting the liability of participants, who bear the risk of losses within the limits of their contributions to the authorized capital, which they may lose. However, no additional requirements are imposed on participants, and additional amounts cannot be collected from participants (unlike a full or limited partnership). A limited liability company is one of the most popular legal forms of business in Ukraine as it has several advantages, including:
A joint-stock company is a commercial organization whose authorized capital is divided into a certain number of shares, which certify the rights and obligations of the company’s participants (shareholders). Joint-stock companies are established in the form of public or private companies. According to Ukrainian legislation, a joint-stock company is a business company whose authorized capital cannot be less than 200 minimum wages and which is divided into a certain number of shares of equal nominal value, corporate rights for which are certified by shares. This legal form is mostly used when it is directly required by the law for certain types of activities (e.g. banking, state and municipal entities for privatization), since it entails high level of scrutiny from regulatory bodies and high reporting standards.
An additional liability company is a business company founded by one or more people, the authorized capital of which is divided into shares, the size of which is determined by the charter. Unlike limited liability companies, the participants of an additional liability company are also liable with their own property in the event of the company’s insolvency. The participants of an additional liability company are liable for its debts with their contributions to the authorized (compounded) capital, and if these amounts are insufficient, additionally with their property in the same multiple of each participant’s contribution for all participants. The maximum amount of participants’ liability is provided for in the constituent documents. Thus, in the event of insolvency of an additional liability company, the participants of the company not only lose their contributions to the authorized capital, but also a certain amount may be charged from them to cover the company’s losses. The maximum amount of participants’ additional liability is established in the statutory documents. Therefore, this type of business entity is also not very common in Ukraine.
A general partnership is a partnership, a legal entity, all participants of which conduct joint entrepreneurial activity and jointly bear additional (subsidiary) liability for the obligations of the partnership with all their property. A joint capital is formed in a general partnership. A person may be a participant in only one general partnership. Only people registered as business entities may be participants in a general partnership. A participant in a general partnership does not have the right, without the consent of other participants, to perform transactions that are identical to those that constitute the subject of the partnership’s activity. The partnership is managed by a joint agreement of all participants: one or all participants. Each participant in the partnership has one vote, unless otherwise established by the constituent agreement. Participants who have been entrusted with the management of the partnership’s affairs must provide the other participants, at their request, with complete information about the actions, and perform these actions on behalf of and in the interests of the partnership. A participant in such a partnership who acted in the interests of the partnership but did not have the authority to do so has the right, if his actions were not approved by other participants, to demand reimbursement from the partnership for the expenses incurred by him if he proves that in connection with his actions the partnership retained or acquired property the value of which does not exceed these expenses. In the event of insolvency of a general partnership, all participants are jointly and severally liable to creditors for the obligations of the partnership. This means that the creditor has the right to demand funds from any of the participants or simultaneously from all participants of the general partnership, regardless of the amount of their contribution to the capital. Participants may be held liable only to the extent that the property available to the legal entity is not sufficient to fulfill the obligation. That is, until the fact of insolvency of the partnership is established and the amount of outstanding debts is determined, participants are not held liable. Participants are liable regardless of whether the debts arose before or after their entry into the partnership. A participant who has left the partnership is liable for the obligations of the partnership that arose before the moment of his departure, equally with the remaining participants, for 3 years from the date of approval of the report on the activities of the partnership for the year in which he left. Given the potential liability implications this form of business entity also is not so common.
A limited partnership is a partnership in which, together with one or more participants who carry out entrepreneurial activities on behalf of the partnership and are liable for the obligations of the partnership with all their property, there is one or more participants whose liability is limited to their contribution to the partnership’s property (contributors). If two or more participants with full liability participate in a limited partnership, they are jointly and severally liable for the debts of the partnership. If all contributors withdraw, the participants with full liability have the right to transform the partnership into a full partnership instead of liquidating it. In this case, as in the case of liquidation of the partnership, it is necessary to make appropriate amendments to the founding agreement and conduct state registration. This form of business entity also is not so common in Ukraine.
In Ukraine, an individual entrepreneur is a citizen who conducts business activity independently, without forming a legal entity. This status is granted upon official registration, enabling the entrepreneur to engage in commercial operations, sign contracts, etc. For individual entrepreneurs there is a simplified regulatory environment, with fewer reporting and administrative requirements (compared to the companies). They are personally liable for business debts, so all personal assets may be used to cover any liabilities. However, they may also use their personal assets/belongings for conducting business activities without their transfer, as in case of doing business via business entity. Ukrainian law provides several simplified tax regimes for such business conduct.
Foreign businesses seeking to establish a presence in Ukraine typically do so by registering a representative office, which functions as an official branch of the parent company. This process begins with the submission of an application and a package of documentation to the designated state registration authority. This structure enables international companies to explore opportunities and maintain a business footprint in the country while minimising tax exposure and administrative requirements. There are two types of representative offices, which may be established by non-resident entity in Ukraine: (i) non-commercial and (ii) commercial. Non-commercial representative office may not conduct actual business activities in Ukraine (only market research and other auxiliary activities) and commercial one can. Commercial representative office basically has the same status as any other Ukrainian legal entity.
The company acquires legal rights from the date of its registration. Under normal conditions, the incorporation time (registration procedure time) lasts up to 24 hours from the date of submission all necessary documents for registration. State registration is conducted in the order prescribed by law for state registration of legal entities.
The company may open current and deposit accounts in banks and enter into contracts and other agreements only after its registration. Agreements concluded before the company registration deemed to be concluded with this company, only if it is approved after registration.
The administrative fee for state registration of a common type of legal entity in 2025 depends on the amount of the subsistence minimum for able-bodied persons, which is set at 3028 UAH on January 1, 2025. The fee itself is 0.3 of the subsistence minimum.
There is no administrative fee for state registration of an individual entrepreneur in 2025. Everything may be done online, including opening bank accounts and receiving e-signature required for tax reporting purposes.
| The form of business | Minimum capital (approx. in EUR) | 1 or more | |
| English | Ukrainian | ||
| Public joint-stock company | Публічне акціонерне товариство (ПАТ) | 200 amounts of minimum salaries (UAH 8000 as of 1.1.2025) on the date of registration: UAH 1 600 000 (approx. EUR 32 700) | 1 or more |
| Private joint-stock company | Приватне акціонерне товариство (ПрАТ) | 200 amounts of minimum salaries (UAH 8000 as of 1.1.2025) on the date of registration: UAH 1 600 000 (approx. EUR 32 700) | 1 or more |
| Limited Liability Company | Товариство з обмеженою відповідальністю (ТОВ) | NS | ND |
| Additional Liability Company | Товариство з додатковою відповідальністю | NS | ND |
| General Partnership | Повне товариство (ПТ) | NS | min 2 |
| Limited Partnership | Командитне товариство | NS | min 2 |
| Individual / entrepreneur | Фізична особа-підприємець | N/A | N/A |
| Representative office | Представництво іноземного суб’єкта господарювання | N/A | N/A |
* NS = not stated; ND = not declared
The official company register in Ukraine can be accessed at https://usr.minjust.gov.ua/. Note that due to martial law it has limited access. However, there are private services that can provide you with required information for a small fee.
The Unified State Register of Court Decisions: https://reyestr.court.gov.ua
Ukraine’s standard CIT rate is 18%. Special rates apply to insurance and gambling activities.
ECT (9%) is a special tax regime for the residents of Diia City.
Rates for legal non-resident entities vary from 0% to 20% based on income type. Tax rates and taxable profit for permanent establishments (e.g. Commercial Representative Office) are the same as for residence in Ukraine.
General tax year in Ukraine is the same as a calendar year (January 1st until December 31st). However, company may receive an approval from tax office to apply different fiscal year. It is not common practice for Ukraine and it is rarely granted. Note, that fiscal year may be changed once in 5 years.
General term for submission of annual reports is March 1st following the tax year.
The company is automatically considered as a tax resident of Ukraine, if it is registered with Ukrainian tax office. Such registration is usually performed automatically upon registration of the entity. In certain cases, tax office may argue that certain entity, like non-commercial representative office shall be treated as a tax resident of Ukraine.
In Ukraine, VAT rates are the following:
Provision of services to a non-resident are subject to 20% VAT or it can be considered as an outside the scope of VAT, depending on the place of supply or the type of service.
There are two types of VAT registration: (i) voluntary, which may be done at establishment of legal presence in Ukraine or any time afterwards, (ii) obligatory, which is required when business entity`s turnover exceeds 1 mil. UAH within past 12-month period. Ukrainian VAT requirements apply only to entities registered as VAT payers in Ukraine. In case Ukrainian VAT payer supplies goods/services to non-resident it is obliged to accrue VAT on top of the sale price. Note that certain goods and services are VAT exempt (e.g. certain outsourcing, consulting, legal services).
There is no wealth or road tax in Ukraine. Due to current situation, Ukraine has also a military tax of 5%. Moreover, there is excise tax for certain products, like fuel, gas, alcohol beverages, cigarettes, etc. There are also certain municipal taxes, like real estate tax, tourism tax, etc.
In Ukraine, both residents and non-residents are entitled to work, but different requirements apply to each group.
According to the current legislation of Ukraine, there are four ways to exercise the right to work and provide services as an individual:
Residents do not need to obtain a work permit, but they must be of legal age. Minors are allowed to work with parental permission only if they are over 14 years old and the work does not interfere with their studies.
Non-residents have the same labour rights as Ukrainian nationals. However, to be employed, a non-resident needs to obtain a work permit from the State Employment Service, issued for a specific position and a specific period, depending on the foreigner’s category and the duration of work. After obtaining a work permit, a non-resident can obtain a residence permit. The permit may be extended an unlimited number of times, provided there are valid grounds for its renewal.
This is a contract between an employee and an employer. The employee agrees to do the work outlined in the contract, while the employer agrees to pay for the work and ensure proper working conditions, following labour laws, any collective agreements, and the company’s internal rules.
A fixed-term employment contract is used when a long-term employment relationship isn’t possible either because of the nature of the work or due to personal reasons of the employee (such as family circumstances). The length of employment is clearly stated in the contract.
Starting from July 19, 2022*, employers are required to inform employees working under fixed-term contracts about any job openings that match their qualifications and offer the possibility of a permanent (indefinite) contract. Employers must also ensure that these employees have equal opportunities to apply for and sign such contracts.
*According to Law No. 2352 of 01.07.2022, which applies during martial law in accordance with the Law of Ukraine ‘On the Legal Regime of Martial Law’. Most provisions of this law will stop being in effect once martial law ends, except for part three of Article 13 and Article 15 of this Law, the articles relating to payments by the state that carries out military aggression against Ukraine of monetary amounts lost as a result of armed aggression related to labour relations.
Seasonal work is a type of fixed-term employment established for a specific period, which, due to natural or climatic factors, cannot be carried out throughout the year but only during a particular season or period not exceeding six months. The industries and types of work considered seasonal are determined by the List of Seasonal Work.
Temporary work is another form of fixed-term employment contract, which can be concluded for up to two months. If the purpose is to replace an employee who is temporarily absent but retains the right to their position, the contract may last up to four months. The grounds and duration for entering into such contracts are clearly defined.
This contract establishes employment for an indefinite number of hours, without guaranteeing continuous work. The employee is only required to perform tasks specified in the contract if and when the employer provides such work. While the employer does not guarantee ongoing assignments, all terms regarding remuneration must still be observed.
Remote work allows the employee to carry out their duties outside the employer’s premises, at any location of their choosing, while using information and communication technologies. In this arrangement, the employee is responsible for managing their own working hours and is not bound by the employer’s internal labour regulations, unless otherwise specified in the employment agreement.
When working under a home-based employment contract, the employee performs their duties from their place of residence or another location of their choosing. This location must have a designated workspace and the necessary technical equipment, including tools, devices, inventory, or a suitable combination, required for producing goods, providing services, or performing tasks. Unless the employment contract states otherwise, home-based employees follow the standard working hours set by the enterprise, institution, or organisation.
The tax period in Ukraine is from the first to the last calendar day of the month.
A consolidated report on accrued income and withheld taxes shall be submitted by the 20th day of each calendar month (based on data for the previous month).
An individual is considered a tax resident of Ukraine if their place of residence is in Ukraine. If an individual’s place of residence is also abroad, they are still considered a tax resident of Ukraine under the following conditions:
The object of taxation is the total monthly/annual taxable income, i.e. income of a resident of Ukraine from all sources in Ukraine and abroad, except for those that are directly exempt from taxation. These include:
Salary and remuneration for work:
Income from civil law contracts:
Dividends, investment income:
Income from real estate and movable property:
Other income:
Examples of non-taxable income:
In Ukraine, the unified social contribution (USC) is 22% of the gross salary of an ordinary employee and 8.41% of the salary of an employee with a disability.
The maximum tax base for the unified social contribution is equal to 20 minimum salaries (currently UAH 160,000). Amounts exceeding this limit are not subject to the USC.
The minimum tax base for the USC is equal to 1 minimum wage (currently UAH 8,000). If the amount of accrued wages is less than UAH 8,000 for any reason (for example, due to partial unpaid absence of an employee from work), the SSC is still calculated on the amount of UAH 8,000.
5% of accrued income is the military tax paid by each employee.
Currently, there is no compulsory health insurance in Ukraine, meaning that employers are not required to take out health insurance policies for their employees. However, voluntary health insurance is available and can be taken out individually or collectively through an employer, with different terms and coverage amounts.
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