2017 - Doing agribusiness in Ukraine: legal guidance for foreign investors

TABLE OF CONTENTS

I. UKRAINIAN AGRICULTURAL SECTOR AT A GLANCE .................................................................4

II. BUSINESS ENTITIES ...........................................................................................................5

1. General information on business entities ..................................................................................5

2. Comparison of the main types of business entities ....................................................................5

3. Other forms for doing agribusiness in Ukraine ..........................................................................7

III. TERMINATION OF BUSINESS / BANKRUPTCY......................................................................9

1. General information of termination ..........................................................................................9

2. Merger, division, reorganisation ...............................................................................................9

3. Liquidation .............................................................................................................................9

4. Bankruptcy.............................................................................................................................9

IV. TAX SYSTEM ..................................................................................................................... 11

1. Tax reports and liabilities ...................................................................................................... 11

2. Corporateprofit tax .............................................................................................................. 11

3. Special taxation for agriculture .............................................................................................. 11

4. Excise and consumption tax .................................................................................................. 12

5. Personal Income Tax ............................................................................................................ 12

6. VAT ..................................................................................................................................... 12

7. Social Security ...................................................................................................................... 13

8. Local taxes ........................................................................................................................... 13

V. TARIFF REGULATION ........................................................................................................ 14

1. Tariff regulations of trade between EU and Ukraine ................................................................ 14

2. TRQ and system of customs regulation in case of TRQ runover ............................................... 14

3. Entryprice ........................................................................................................................... 14

VI. REPATRIATION OF PROFITS.............................................................................................. 15

1. Currency control ................................................................................................................... 15

2. Withholding tax .................................................................................................................... 15

3. Double tax treaties ............................................................................................................... 16

VII. PROPERTY LAW .............................................................................................................17

1. Registration of title to real estate and land .............................................................................17

3. Restrictions on ownership for foreigners ................................................................................ 17

4. Agricultural property transactions, Land moratorium, perspectives of its lifting ......................... 17

VIII. IMMIGRATION REQUIREMENTS...................................................................................... 19

1. Entry permits ....................................................................................................................... 19

2. Visa requirements. Application for the visa ............................................................................. 19

3. Workpermit ......................................................................................................................... 20

Legal framework for doing agribusiness in Ukraine 3

IX. EMPLOYMENT LAW ...........................................................................................................21

1. Employment agreement ........................................................................................................ 21

2. Employee's rights during employment.................................................................................... 21

3. Termination ......................................................................................................................... 22

4. Mass lay-offs ........................................................................................................................ 22

5. Severance payment .............................................................................................................. 22

6. Trade unions ........................................................................................................................ 23

7. Collective rights .................................................................................................................... 23

X. IP..................................................................................................................................... 24

1. Nature of the right................................................................................................................ 24

2. Who can be the holder.......................................................................................................... 24

3. Patents ................................................................................................................................ 24

4. Trademarks.......................................................................................................................... 24

5. Copyright & related rights ..................................................................................................... 24

6. Plant breeders'property rights .............................................................................................. 25

XI. JUDICIARY SYSTEM ..........................................................................................................26

1. Choice of law, jurisdiction ..................................................................................................... 26

2. International jurisdiction and judgment enforcement .............................................................. 26

3. Arbitration............................................................................................................................ 26

4. agricultural trading arbitration ............................................................................................... 27

5. Protection against expropriation ............................................................................................ 27

XII.KEY LEGISLATION FOR CORE AGRICULTURAL SECTORS.................................................. 28

1. Crop husbandry (Grain & Oilseed etc.) ................................................................................... 28

2. Animal husbandry ................................................................................................................. 29

3. Livestock slaughtering .......................................................................................................... 30

4. Diary ................................................................................................................................... 30

5. Genetic Modified Foods ......................................................................................................... 30

6. Spiritsand winery ................................................................................................................. 31

7. Organic products .................................................................................................................. 31

XIII.UKRAINE’S POSITIVE TRANSFORMATIONS AS REFLECTED IN GLOBAL RANKINGS ............ 32

XIV. LIST OF ABBREVIATIONS ............................................................................................... 33