At the end of June, the President signed a law on removing the barriers for the foreign investors, which amends a number of existing legislative norms. In this publication we try to understand what it means for the investors themselves.
So, the main achievements of the law are the establishment of the procedure for obtaining the work permit for a foreign investor at the legislative level, as well as determination of the possibility to obtain a residence by the investor (hereinafter – residence), not only permanent but also temporary.
As for the work permit: the law clearly stipulates the procedure, all the necessary documents and requirements. Among the main documents are only four:
1. Application of the employer in the prescribed form
2. Copies of the passport of a foreigner with the translation
3. Color photo of a foreigner 3,5×4,5
4. Draft employment contract with a foreigner
The additional documents (listed in the law) are required only for certain categories of the foreigners. It is also important that the law explicitly prohibits authorities demanding any other documents not provided for by law from the foreigners or their employers (both when registering the work permit and when applying for a temporary residence). We remind that earlier the procedure for obtaining the work permit for a foreigner was established by by-laws which often gave the officials the opportunity for manipulation and abuse.
As for the residence permit, the law establishes an opportunity for the investors to obtain not only a permanent residence permit, but also a temporary residence permit. The difference is that a permanent residence permit assumes immigration to Ukraine. Earlier, an investor who did not stay in labor relations with his own enterprise did not have the right to obtain a temporary residence permit, and the registration of a permanent residence permit took a very long time – up to a year. As a result, during the first year of work, the investor did not have the opportunity to control the work of his company in Ukraine.
With the entry into force of the new law, namely since September 27 of this year, a foreigner will be able to issue a temporary residence permit in just 7 working days if he is a founder, participant, beneficial owner or controller of a Ukrainian legal entity, and the amount of his share in the capital of this legal entity is not less than 100,000 euros at the official rate of the NBU. The standard validity of temporary residence permit for the investors is 1 year.
At the same time, the information that the foreigner is the founder / owner / beneficiary of the legal entity, as well as the information on the official exchange rate on the date of investment, cannot be required by the territorial body of the state migration service, but it must receive it independently.
It is important to remember that it is possible to apply for a temporary residence permit through a representative (by proxy), but it is possible to pick up the completed document only in person.
As you can see, although this law has become not as significant as it may seem from its title, but it is still a step towards the foreign investors. We hope that this trend will continue in the national legislation. Improving investment climate in Ukraine
At the end of June, the President signed a law on removing the barriers for the foreign investors, which amends a number of existing legislative norms. In this publication we try to understand what it means for the investors themselves.
So, the main achievements of the law are the establishment of the procedure for obtaining the work permit for a foreign investor at the legislative level, as well as determination of the possibility to obtain a residence by the investor (hereinafter – residence), not only permanent but also temporary.
As for the work permit: the law clearly stipulates the procedure, all the necessary documents and requirements. Among the main documents are only four:
1. Application of the employer in the prescribed form
2. Copies of the passport of a foreigner with the translation
3. Color photo of a foreigner 3,5×4,5
4. Draft employment contract with a foreigner
The additional documents (listed in the law) are required only for certain categories of the foreigners. It is also important that the law explicitly prohibits authorities demanding any other documents not provided for by law from the foreigners or their employers (both when registering the work permit and when applying for a temporary residence). We remind that earlier the procedure for obtaining the work permit for a foreigner was established by by-laws which often gave the officials the opportunity for manipulation and abuse.
As for the residence permit, the law establishes an opportunity for the investors to obtain not only a permanent residence permit, but also a temporary residence permit. The difference is that a permanent residence permit assumes immigration to Ukraine. Earlier, an investor who did not stay in labor relations with his own enterprise did not have the right to obtain a temporary residence permit, and the registration of a permanent residence permit took a very long time – up to a year. As a result, during the first year of work, the investor did not have the opportunity to control the work of his company in Ukraine.
With the entry into force of the new law, namely since September 27 of this year, a foreigner will be able to issue a temporary residence permit in just 7 working days if he is a founder, participant, beneficial owner or controller of a Ukrainian legal entity, and the amount of his share in the capital of this legal entity is not less than 100,000 euros at the official rate of the NBU. The standard validity of temporary residence permit for the investors is 1 year.
At the same time, the information that the foreigner is the founder / owner / beneficiary of the legal entity, as well as the information on the official exchange rate on the date of investment, cannot be required by the territorial body of the state migration service, but it must receive it independently.
It is important to remember that it is possible to apply for a temporary residence permit through a representative (by proxy), but it is possible to pick up the completed document only in person.
As you can see, although this law has become not as significant as it may seem from its title, but it is still a step towards the foreign investors. We hope that this trend will continue in the national legislation.