Investor's Guide
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KREMENCHUK - SUCCESS MAKER! INVESTOR’S GUIDE DISTANCE TO CAPITAL CITIES RIVER PORTS LONDON 2600 km PARIS 2400 km BERLIN 1700 km WARSAW 1200 km MINSK 950 km MOSCOW 775 km ANKARA 800 km ROME 1900 km MADRID 3200 km PRAGUE 1600 km VIENNA 1400 km BUDAPEST 1200 km BUCHAREST 770 km SOFIA 1100 km BELGRADE 1200 km TBILISI 950 km OSLO 2200 km STOCKHOLM 1800 km KREMENCHUK - EXTRAORDINARY OPPORTUNITIES FOR YOUR BUSINESS DISTANCE TO AIRPORTS • Boryspil - 261 km • Kyiv - 293 km • Dnipro - 166 km • Kharkiv - 250 km • Poltava - 110 km RAILWAYS • Kremenchuk - Kyiv • Kremenchuk - Poltava • Kremenchuk - Prague • Kremenchuk - Warsaw • Kremenchuk - Bucharest • Kremenchuk - Minsk • Kremenchuk - Przemyśl KREMENCHUK: VENI. VIDI. VICI. LUCRUM! Visa regime of Ukraine. Arrival in Real estate transactions. Kremenchuk page 4 Investor incentives page 7 Banking, finance, and insurance page 4 Logistics page 7 Hiring. Customs rules. Environmental requirements. page 8 Accounting requirements. page 5 Protection of intellectual property rights. page 8 Organizational forms of doing business page 5 Connection to utility systems Antitrust laws. Building codes. page 9 page 6 Accommodation in Ukraine page 9 Taxation system We look forward to cooperating with you. Please email your proposals and questions to [email protected] Kremenchuk awaits you! INDUSTRIAL KREMENCHUK - 86 INDUSTRIAL ENTERPRISES - 58 DEVELOPERS 14,342 BUSINESSES - 467.50 AVERAGE SALARY IN US 3,188 LEGAL ENTITIES DOLLARS 11,082 SMALL BUSINESS OWNERS MECHANICAL ENGINEERING OIL REFINERIES PETROCHEMICAL 58,142 FULL-TIME EMPLOYEES 161,147 OTHER GROUPS DEVELOPMEN T METAL PROCESSIN G RETAIL FOOD 219,289 INDUSTRY OF CITY RESIDENTS 127,200 LIGHT WORKING AGE POPULATION INDUST RY POPULATION: AGED 15 TO 70 KREMENCHUK - TERRITORY FOR YOUR BUSINESS KREMENCHUK IS A LEADING INDUSTRIAL HUB AND REGIONAL CENTER OF UKRAINE. THE CITY SITS ON THE BANK OF THE RIVER DNIPRO - ONE OF THE THREE MAJOR RIVERS IN EUROPE AND UKRAINE’S CHIEF WATER ROUTE. KREMENCHUK IS HOME TO INDUSTRIALISTS AND SCHOLARS, BUSINESS PEOPLE AND INVENTORS. IT SITS AT A CROSSROADS OF TRADE AND TOURIST ROUTES. THIS CITY AWAITS YOU! MINERALS EDUCATION IN KREMENCHUK Oil UNIVERSITIES Iron ore AND INSTITUTES Gas condensate 18,300 Natural gas Clay VOCATIONAL Sand SCHOOLS 5,490 We look forward to cooperating with you. Please email your proposals and questions to [email protected] Kremenchuk awaits you! VISA REGIME OF UKRAINE Welcome to Kremenchuk - a city guaranteed to make your business grow in a stable and nurturing environment. If you are a foreigner, start your trip to Kremenchuk by reviewing the visa requirements. Citizens of 60 jurisdictions, including all EU countries, the USA, Canada, Japan, Russia, Brazil, Argentina, and others, may enter Ukraine for up to 90 days during any 180-day period. In addition, citizens of Armenia, Azerbaijan, Georgia, Moldova, and Uzbekistan are entitled to visa-free travel in Ukraine. If you still need a visa, you can use the system of online registration of e-visas for entering Ukraine. For details from the Ministry of Foreign Affairs of Ukraine about the visa regime and e-visa applications, visit: https://mfa.gov.ua/ua/consular-affairs/con/visa ARRIVAL IN KREMENCHUK Our foreign guests usually arrive at Boryspil, Ukraine’s main airport that is 12 km away from the capital of Ukraine, Kyiv, and 261 km from Kremenchuk. Boryspil is conveniently located at the intersection of many air routes connecting Asia to Europe and America. More than 25 domestic and foreign airlines operate a passenger and cargo service from Boryspil along 75 regular routes worldwide. Other than by air, you can get to Kremenchuk by rail or road. The city is located 973 km away from the EU border. BANKING, FINANCE, AND INSURANCE The banking system is an element of the national economy. The National Bank of Ukraine pursues a monetary and credit policy aimed at maintaining the stability of the Ukrainian currency, carries out foreign exchange regulation, and lays down rules for banking transactions. The Ukrainian currency is the hryvnia (symbol — ₴, code — UAH). As of March 15, 2020, its exchange rate stood at ₴29.73 per €1. Payments within Ukraine are made both in cash and by bank transfer. To pursue their business, companies operating in Ukraine open hryvnia and foreign currency accounts with banks, which in turn maintain correspondent accounts with the National Bank of Ukraine, other banks in and outside Ukraine, to make financial transactions by using BankID from the National Bank of Ukraine and SWIFT, the International Money Transfer System. In this case, the rates for making SWIFT payments are 0.5% of the transfer amount on average. International payment systems that operate in Ukraine include Visa, MasterCard, American Express, Western Union, MoneyGram, INTELEXPRESS, HAZRI, RIA, Sigue Money Transfer, MEEST; innovative Apple Pay and Google Pay services; the National Payment System "Ukrainian Payment Space". The Ukrainian insurance system is similar to those operating in developed economies. Hundreds of insurance companies operating in Ukraine can provide not only insurance in three main areas such as personal, property, and liability insurance, but also risk reinsurance. We look forward to cooperating with you. Please email your proposals and questions to [email protected] Kremenchuk awaits you! HIRING The total population of Ukraine is 42.0 million people (as of June 1, 2019), including 16.4 million employed people aged 15 and older. The working age population (15 to 70 years old) in Kremenchuk is 127,200 people. The average monthly salary of full-time employees in Kremenchuk is €468.50; minimum wage is €197.34 (as of March 15, 2020, at the exchange rate of the national currency (hryvnia) to the euro: ₴29.05 to €1). Employment is regulated in the country by the Code of Labor Laws of Ukraine, other laws and regulations of Ukraine, and internal regulatory documents of business entities. The State Employment Service provides assistance in finding staff and issues permits for employing foreigners in Ukraine. In addition, a significant number of recruitment companies operate in Ukraine, providing staff search and selection services to employers. Details about personnel hiring practices are available at https://pol.dcz.gov.ua/, https://www.facebook.com/KremenMRCZ/ ACCOUNTING REQUIREMENTS Accounting in Ukraine is regulated by the Law of Ukraine On Accounting and Financial Reporting in Ukraine, accounting regulations (standards) developed on the basis of the International Financial Reporting Standards and the European Union accounting laws. The accountant is responsible for accounting at the enterprise, and the director as the authorized representative of the owner is responsible for the organization of accounting. Companies in Ukraine may not only engage their full-time employees in accounting but also outsource it contractually. These services typically cost around €100 a month for newly created companies with a small number of transactions. ORGANIZATIONAL FORMS OF DOING BUSINESS If you decide to start your own business in Kremenchuk, you will be surprised at how fast and easy registration is. You can set up new businesses that are 100% owned by you regardless of whether you are a Ukrainian or foreign investor; open branches or other standalone units of your company; acquire existing Ukrainian enterprises or create joint ventures with Ukrainian legal entities and individuals. The most common types of companies operating in Ukraine are limited liability companies (LLCs), public joint stock companies (PJSCs), and private joint stock companies (PrJSCs). The most popular form of business organization in Ukraine is a limited liability company, which is approximately equivalent to LLC in Great Britain or GmbH in Germany. The cost of a law firms' services to draft the constitutional documents of an LLC and to procure registration within one week is less than €100. For more details about legislative requirements for the types of companies being formed, visit https://cnap-kremen.gov.Ua/poslugi/area/subgroup/2 We look forward to cooperating with you. Please email your proposals and questions to [email protected] Kremenchuk awaits you! ANTITRUST LAWS Ukraine is a market economy. It is competition, which means free rivalry among entrepreneurs to gain advantage over the rest through their own achievements, that creates a number of important conditions for a successful development of society. In economic terms, it is a prerequisite for an optimal distribution of limited social resources, their most efficient use by each individual producer, which is a prerequisite for progress in science and technology. Ukrainian laws on the protection of economic competition introduce special legal mechanisms to prevent anticompetitive concerted actions of business owners and anticompetitive actions of government authorities and to avoid the monopolization of markets for goods. They are based on three types of control exercised by the Anti-Monopoly Committee of Ukraine: • control of concerted actions of business entities intended to prevent an anticompetitive collusion of business owners; • control of the concentration of business entities intended to prevent the emergence of monopolies in the market through mergers or acquisitions, the establishment of new enterprises, the acquisition of equity rights in or the acquisition of control by one entity over another or otherwise; • control of anticompetitive actions of government authorities, local government,