Rules & Regulations

Business registration

All businesses operating in Ukraine must be registered with the State Registrar of Legal Entities and Individual Entrepreneurs. This process involves obtaining a registration certificate and a tax identification number. In Ukraine, the laws and regulations governing business registration are primarily outlined in the Law of Ukraine "On State Registration of Legal Entities, Individual Entrepreneurs, and Public Organizations" and its accompanying regulations.

Corporate governance

Ukrainian company law sets out the rules for corporate governance, including the duties of directors, shareholders' rights, and the requirements for holding board meetings. The legal framework for corporate governance in Ukraine is primarily established by the Law of Ukraine "On Joint Stock Companies" and the Law of Ukraine "On Limited Liability Companies." These laws provide guidelines on the structure and operation of companies, the rights and responsibilities of shareholders and directors, disclosure requirements, and shareholder protection.

Taxation requirements

Taxation in Ukraine is governed by the Tax Code of Ukraine, which provides the legal framework for the administration and collection of taxes. Businesses and individuals engaged in economic activities are required to register with the tax authorities and obtain a taxpayer identification number (TIN). Taxpayers must fulfill their tax obligations by submitting regular tax reports and making timely payments. Reporting periods and deadlines vary depending on the type of tax and taxpayer.

Employment regulations

Ukrainian labor law governs the terms and conditions of employment, including minimum wages, working hours, and employee rights. Businesses must comply with these regulations when hiring and managing employees. Employment regulations in Ukraine are primarily governed by the Labor Code of Ukraine, which sets out the rights and obligations of employers and employees. Employment relationships in Ukraine are typically established through written employment contracts. The contract should include essential terms such as job duties, working hours, compensation, vacation, and termination conditions. The standard working week in Ukraine is 40 hours, usually spread over five days. Overtime work may be permitted but is subject to certain restrictions and should be compensated accordingly.

Intellectual property

Ukraine has legal regulations to protect intellectual property rights. It is essential for businesses to register their trademarks, copyrights, and patents to protect their intellectual property. The main legislation governing intellectual property in Ukraine includes the Law of Ukraine "On Copyright and Related Rights," the Law of Ukraine "On Patents," and the Law of Ukraine "On Trademarks and Service Marks." These laws provide the legal framework for copyright, patents, trademarks, and other forms of intellectual property protection.

Commercial contracts

Commercial contracts in Ukraine are an essential aspect of conducting business transactions and establishing legal relationships between parties. Here are some key points regarding commercial contracts in Ukraine:

1. Freedom of Contract: Ukrainian law recognizes the principle of freedom of contract, allowing parties to negotiate and enter into contracts based on their mutual agreement, subject to certain statutory limitations.

2. Contract Formation: Commercial contracts in Ukraine can be formed orally or in writing. However, it is advisable to have written agreements to avoid disputes and provide clarity on the terms and conditions of the contract.

3. Contract Content: Commercial contracts should clearly outline the rights and obligations of the parties involved, including details of the products or services to be provided, payment terms, delivery conditions, warranties, dispute resolution mechanisms, and any other relevant provisions.

4. Consideration and Payment Terms: Contracts typically specify the consideration or value exchanged between the parties. Payment terms, including the amount, currency, timing, and methods of payment, should be clearly defined.

5. Performance and Non-performance: The contract should specify the performance obligations of each party, as well as the consequences of non-performance or breach of contract, such as penalties, damages, or termination rights.

6. Contract Termination: Commercial contracts may include provisions regarding contract termination, including conditions for termination, notice periods, and the rights and obligations of the parties upon termination.

7. Dispute Resolution: Contracts can specify the method of dispute resolution, such as litigation, arbitration, or mediation. It is common for parties to include dispute resolution clauses, indicating the jurisdiction or arbitration rules to govern any potential disputes.

8. Governing Law: Parties may choose the governing law of the contract, typically either Ukrainian law or the laws of another jurisdiction. This choice determines the legal principles and regulations that will apply to the interpretation and enforcement of the contract.

9. Contract Language: Contracts can be written in Ukrainian or any other language agreed upon by the parties. However, if a dispute arises, the Ukrainian version will prevail in Ukrainian courts.

10. Contract Validity and Enforceability: Contracts must comply with the requirements of Ukrainian law to be valid and enforceable. It is advisable to seek legal advice to ensure compliance with legal formalities and to understand the specific requirements for the type of contract being drafted.

Competition law

Competition law in Ukraine is designed to promote fair competition, prevent anti-competitive practices, and protect consumers' interests. Here are some key points regarding competition law in Ukraine:

1. Legal Framework: The main legislation governing competition law in Ukraine is the Law of Ukraine "On Protection of Economic Competition." This law establishes the legal framework for competition regulation and the powers of the competition authority, the Antimonopoly Committee of Ukraine (AMCU).

2. Prohibition of Anti-Competitive Agreements: Competition law in Ukraine prohibits agreements and concerted actions that restrict competition. This includes agreements on price-fixing, market sharing, bid rigging, and other forms of collusion between competitors.

3. Abuse of Dominant Position: Competition law prohibits entities with a dominant market position from abusing their market power to restrict competition or harm competitors. Examples of abusive behavior include predatory pricing, refusal to deal, discriminatory practices, and excessive pricing.

4. Merger Control: The AMCU oversees the control of mergers and acquisitions that may have a significant impact on competition in the Ukrainian market. Companies reaching certain turnover thresholds are required to notify the AMCU of their proposed mergers or acquisitions for review and approval.

5. Prohibition of Unfair Competition: Competition law also prohibits unfair competition practices, such as false advertising, misleading or deceptive practices, disparagement of competitors, and the use of unfair business practices that can harm the interests of consumers or competitors.

6. Investigation and Enforcement: The AMCU has investigative powers to examine potential violations of competition law, including the authority to request information, conduct on-site inspections, and impose fines and other remedies for non-compliance.

7. Leniency Program: The competition law in Ukraine includes a leniency program that allows participants in anti-competitive practices to cooperate with the AMCU in exchange for leniency or reduced penalties. This program encourages companies to come forward with information about anti-competitive conduct.

8. Consumer Protection: Competition law in Ukraine aims to protect consumer interests by ensuring fair competition, preventing price manipulation, and promoting consumer choice. The AMCU collaborates with other consumer protection authorities to address issues related to competition and consumer rights.