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Private alternatives to state owned retirement homes

How to start a Nursing Home in Ukraine?

In this article, we will elaborate on legal aspects of setting up and running Nursing Homes in Ukraine.

What is Nursing Home

You won’t find the concept a “nursing home” in the current Ukrainian legislation. But still, the legislator uses the terms “care homes for elderly people”, “care homes for war and labor veterans” or “geriatric care facilities” (hereinafter - GCF).

The key objective of the Geriatric Care Facilities is to ensure adequate living conditions, services and health care for elderly and disabled people. For said purpose, the GCF residents are provided with all necessary facilities (housing, clothing, shoes, etc.), food, necessary medical care and conditions to facilitate their adaptation in such an institution.

The GFCs in Ukraine are state monopolies, as these facilities are formed, subordinated, funded and controlled exclusively by state authorities.

However, the current law of Ukraine does not explicitly prohibit to set up private companies that provide housing and health care services to the population on a profit-making basis. Although the issue of legalizing private GCFs have been discussed for a long time now, it hasn’t been sufficiently addressed yet. This creates a strong demand for private alternatives in this area.

Key steps to start such a companyRegistration.

1) First, you need to decide on the business organisation. The most popular options are a Limited Liability Company (LLC) or an individual entrepreneur. At this stage it is necessary to decide on the tax system. We recommend to choose the third or second group of the unified tax scheme.

2) In order to provide future clients with housing, the company shall first of all choose the relevant types of economic activity (hereinafter - KVED). We recommend that you choose the following KVEDs: 55.90 The activity of other short-term accommodation facilities; 

55.10 The activity of hotels and similar temporary accommodation facilities; 

68.20 Leasing and exploitation of own or leased real estate. 

Of course, in addition to registering KVEDs, the future company shall have premises equipped in accordance with the sanitary and living conditions to accommodate patients.

3) Opening of a doctor’s (nurse’s) office in the building where accommodation and catering services to be provided. Such a medical room is a well-equipped room where healthcare services to be provided. The procedure for opening a medical room requires obtaining a special license, which is the final and most important step.

4) Obtaining a medical license.

In fact, you will receive a “hostel” with an equipped medical room. Each resident will be required to sign an agreement for accommodation and medical services.

If the documents are properly drawn up and submitted to the relevant authorities in a timely manner, the entire process of setting up the facility may take thirty (30) business days and more. This period is specified, provided that the state registration and licensing authorities do not refuse to accept the documents due to errors or failure to comply with other conditions stipulated by law.

Conclusion

Thus, if you want to set up an alternative Geriatric Care Facility in Ukraine, you can do it quite legitimately. All you need is to create a multi-profile enterprise, which will provide housing, medical care, food and clothing services.

Such activities will be lawful due to the preliminary obtainment of the appropriate licenses and permits by such an enterprise. The only restriction will be related to the title a “geriatric care facility” that shall not be used to avoid any association with the establishment created by the state authorities.

Our company can assist you at any stage of setting up such a facility, or to independently handle all procedures and open the facility on a turn-key basis.

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