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Foreign investments attraction

Attracting foreign investments is one of the most important tasks for any state. At the time this issue than ever important for the Ukrainian business and the economy. In the rating of investment attractiveness, developed the Hamburg Institute of World Economics (HWWI) together with the German auditing company BDO, our country in 2016 won only 130 seats, along with such countries as Algeria and Iraq. Compared with last year, Ukraine in this rating dropped to 41 place.

For simplification of attracting foreign investment and promoting economic recovery State approximation of Ukraine to EU standards, Ukrainian legislator made reforming investment laws.

Among the important innovations in 2016 is worth noting the Law of Ukraine "On amendments to some legislative acts of Ukraine concerning the abolition of mandatory state registration of foreign investments", abolishing the mandatory state registration of foreign investment and facilitates their involvement in Ukraine.
Under the old procedure, the investor had to go through a lot of bureaucratic procedures. To register investments he had to prepare a large number of documents and the procedure was delayed for a long period.
It should be noted that innovation retained by the legislator guarantees for foreign investors. Still, foreign investors in Ukraine provided guarantees sustainability legislation, which is the ability of the investor to use for 10 years, the legislation in force at the time of investment. Another guarantee is to protect investments against nationalization which prevents withdrawal of investments from the state. In addition, the investment subjects have the right to compensation for damages and state authorities for unrestricted transfer of proceeds after paying all appropriate taxes. Also, the law guarantees the possibility of returning your investment in full in the event of termination of investment activity.

Under the new approach to registration of foreign investments should only submit information to the State Statistics Service. Such information can be submitted either in writing or in electronic form. At the same time, submit information to the supervisory authority can not only owner of the company, as it was before, but the accountant of the company. With supply information to the State Statistics Service of the procedure for registration of foreign investment is complete, and investors can focus solely on their business.

These changes, while not able to significantly influence the investment climate in Ukraine, but they significantly reduce the irritation of foreign investors who are constantly faced with the troublesome procedure of registration of investment.

It should also be noted that the Verkhovna Rada in the first reading the draft law "On amendments to some legislative acts of Ukraine on reducing barriers for foreign investment (to cancel the registration of foreign investments and changes in the rules of employment and Temporary Residence)" .

The bill provides for changes in the procedure for issuing permits for the employment of foreigners and stateless persons and issue certificates for residence.

In particular, it is proposed to provide the right to receive a temporary residence permit in Ukraine by foreign investors who have substantial interest in Ukrainian companies, but not employed in the company.

However, the Cabinet of Ministers of Ukraine Decree of 19.10.2016 p. 740 number Office created to attract and support investment and approved the Regulations on the Office to attract and support investment.
According to the Regulations, the Office to attract and support investment is a temporary advisory body of the Cabinet of Ministers of Ukraine, whose activities are coordinated by the Government Commissioner on investment. It is planned that the newly created body will serve as a mechanism for solving business problems and the implementation of all the organizational work for new investment projects.

Summing up, it should be noted that any foreign investor always wants the state in the economy which it invests its own funds, could ensure their efficiency and profit. Therefore, Ukrainian legislator and Ukrainian businessmen should understand that in order for Ukraine to be attractive for foreign investors to attract investment legislation should be clear, democratic and stable.

Investment climate zip (0.1 Mb)