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Сonditions and procedure of obtaining residence permit in Ukraine based on investitions

One of the reasons for a person without citizenship or a foreigner to get a permanent residence permit in Ukraine is to make foreign investment into economy of Ukraine in foreign convertible currency for the sum of not less than one hundred thousand US dollars. By means of such an investment, a permit for immigration to Ukraine is obtained which in future will be submitted to the local authorities of the State Immigration Service of Ukraine.

Permit for immigration is provided within the immigration quote [1], according to Article 4 of the Law of Ukraine “About immigration”.

For those persons who made an investment into the economy of Ukraine with foreign convertible currency for the sum from one hundred thousand US dollars, the immigration quote for 2018 is unlimited. [2] 

In what way a foreigner or a person without citizenship should make a foreign investment?

Foreign investors are person who perform the investment activity in the territory of Ukraine. And namely natural persons – foreigners having no permanent residence in the territory of Ukraine and not restricted in legal capability. [3]

 In order to make in the optimal way the investments into the economy of Ukraine, one should create and register a new enterprise in accordance with the Law of Ukraine, or pay the share in the authorized capital of an existing enterprise (provided by Article 3 of the Law of Ukraine “About foreign investment treatment”).

Those are not the only forms for making the foreign investment into the economy of Ukraine. But this option has considerable demand among foreigners, and therefore we will go into the details of it.

In what currency is the foreign investment made?

You can invest in foreign currency that is considered by the National Bank of Ukraine as convertible [4], and the US dollar and Euro belong to the most common currencies of the kind.

The Ukrainian hryvnia is not suitable for investment. Since according to the Law of Ukraine “About immigration” it is referred namely to foreign convertible currency. The same goes for other forms of investment, too. Shares and corporate rights, although being qualified as investment, are no reason for getting a residence permit.

To perform investments in future, a foreigner or a person without citizenship should open an investment account at a bank in Ukraine. Opening of accounts of such type is regulated by the Instruction approved by the Resolution of the Board of Directors of the National Bank of Ukraine dated 12.11.2003 No. 492. [5]

Investment account is an account in foreign currency of the group 1 classifier and/or in hryvnia which (account) was opened by a foreign investor at an authorized bank in accordance with the above-mentioned instruction.

In what way are foreign investments performed in practice? And by what is that confirmed?

According to clause 1 of the resolution of the Board of Directors of the National Bank of Ukraine “About approving the Foreign currencies classifier”, convertible currencies are those which are used widely for performance of payments on international transactions and the currencies of countries that are members of the European Union (US dollar, Euro, zloty, yen, pound sterling, Czech koruna etc.).

That is, a non-resident should make an investment expressed in monetary terms in a foreign currency that will be equivalent to not less than 100 000 US dollars (according to the official exchange rate of the National Bank of Ukraine upon the day the investment is made).

Since Article 4 of the Law of Ukraine “About immigration” defines the investments made into the economy of Ukraine, then such a contribution should correspond with the purpose of getting profit, and namely carrying out a business activity or development of economic situation in Ukraine in some other way.

Taking into consideration the package of documents that is submitted at registration of permit, it is reasonable to make investments into the capital of one’s own company that will give profit later. In case the investment is made only for getting a permanent residence permit, then after getting it, a foreigner may spend funds for own needs and on behalf of the enterprise (for example, you could purchase a house in which you will live, but the owner of the house will be the enterprise).

What documents are to be submitted to the State Migration Service (hereinafter referred to as the SMS) for getting a permanent residence permit (on the grounds of making foreign investments)?

Documents for registration permit are submitted to:

  • a state enterprise that relates to the sphere of administration of the SMS;
  • an administrative services providing center;
  • local bodies/subdivisions of the SMS, at the domicile.

For registration of permit, the documents specified in clause 32 of the above-mentioned order should be attached to the application form:

  • foreigner’s passport or a document certifying the identity of a person without citizenship, with a type D visa;
  • a document certifying the identity of a legal representative and a document confirming that authority (in case the documents are provided by a legal representative);
  • translation into Ukrainian of the page of foreigner’s passport or document certifying the identity of a person without citizenship, with personal data certified according to procedure established by the law;
  • a copy of decision about permit for immigration;
  • a document confirming the payment of administrative fee, or a document about being released from paying it;

By examining the materials of the case, they check in what way the permit for immigration was obtained.

The permit is given within 15 work days from the moment the documents are provided from a foreigner or a person without citizenship.

Residence permit in Ukraine is valid for 10 years.

A local body of the SMS that accepts the corresponding documents for registration should issue the residence permit to a foreigner or a person without citizenship. The notes about getting permit are provided on the last free page.

Therefore, before submitting documents for permit, you should get permit for immigration.

The application about providing permit for immigration and the documents required for application are submitted personally by the applicant to the SMS. For compelling reasons (applicant’s illness, natural calamity etc.), the application may be sent via post (or on behalf of the applicant, be submitted by some other person, by the certified power of attorney).

Besides application about providing permit for immigration, also the following documents are submitted [6] :

1) foreigner’s passport or document certifying identity of person without citizenship, (to provide) the copies of the required pages;

2) translation into Ukrainian of the page of foreigner’s passport or document certifying identity of person without citizenship with personal data (a notarized copy);

3) 3 photos;

4) document about place of residence (abroad and in Ukraine);

5) information about family composition, to be confirmed documentarily (copies of marriage certificate, documents about adoption, certificate of birth etc.);

6) document about absence of applicant’s diseases specified in the Law of Ukraine “About immigration”. It is issued by a medical and preventive treatment institution;

In exceptional cases it is possible to get information while having sent a request to the competent authorities of foreign countries (with which the agreements were made about legal assistance on criminal, family and civil rights).

7) confirmation of payment of national duty or consular fee (in case the payment for that is provided by the law), or a document confirming advantageous rates in payment;

8) copies of the statute and of the registered agreements about investment activity. And also a bank reference about receipt of the corresponding foreign investment.

Although the compulsory state registration of foreign investments was cancelled by the law [7], all the same it is necessary to get a reference from the bank about receipt of funds.

Decision on applications about providing permit for immigration is taken by the SMS authorities.

The Ministry of Internal Affairs, the Security Service of Ukraine (and its regional bodies), the bodies of the National Police, the State Border Service, the Working apparatus of the Ukrainian bureau of the Interpol detect persons for whom the permit for immigration cannot be provided.

Also information is collected which may be a reason for cancellation of permit for immigration (according to the Law of Ukraine “About immigration”).

Medical and preventive treatment institutions perform medical examination of persons according to the procedure established by the Ministry of Health. And namely those who stay in Ukraine legally and who want to get permit for immigration. Then those institutions issue a document about absence of applicant’s diseases (which according to the law can be a reason for refusal to issue such a permit).

Banks and their standalone subdivisions (departments, representation offices, branches) issue to a person without citizenship or to a foreigner a reference about receipt of foreign investments into the economy of Ukraine.

The reference contains information about receipt of investments to the corresponding account as foreign convertible currency (made by a person without citizenship or by a foreigner), for the sum from one hundred thousand US dollars. The investment is to be made into the economy of Ukraine. This reference is signed by the head of the bank (or its standalone subdivision of branch, department, representation offices). Also the date of issue and number should be specified. The reference is certified with a seal and is valid for six months from the moment it is issued.

On the day the decision is taken about providing the permit for immigration, the SMS carries out examination of information in the Unified state register of legal entities and natural persons, public formations and entrepreneurs).

What exactly is checked? The information about state registration of the legal entity and the copy of statute (from the foreign investor). The documents should be currently valid upon the date the decision is taken.

The documents which are issued by competent authorities of foreign countries and are legalized according to the established procedure (unless otherwise provided by international agreements of Ukraine).

The period of consideration of application about permit for immigration cannot exceed one year from the day it is submitted.

Documents issued by competent authorities of foreign countries are subject to legalization according to the established procedure (unless otherwise provided by international agreements of Ukraine).

Decision about providing the permit for immigration or about refusal to provide such a permit is valid for one year from the day it is taken.

Person who got the permit for immigration should within the period of permit apply to the SMS with an application about issue of residence permit, in case they stay legally in Ukraine (clause 19 of the above-mentioned resolution). The resolution does not give a clear deadline for issue of the reference, but it is specified on the website of the SMS that such procedure cannot last more than one year.

Usually consideration of application takes place for about 6 months.

Immigrants who got certificates should get registered at the domicile. In case their domicile changed, they should have a repeated registration according to procedure established for citizens of Ukraine.

How to get into the immigration quote?

The immigration quote is set yearly upon recommendations of various authorities. As for quote for foreigners who made foreign investments into the economy of Ukraine, according to the instruction of the Cabinet of Ministers of Ukraine “About setting the immigration quote for 2018”, the quote for them is unlimited.

Conclusions

It is quite possible to get residence permit in Ukraine on the grounds of making foreign investments into the economy of Ukraine. But a person who counts on getting residence permit in Ukraine should understand that the process requires considerable time (from 6 months to one year) and money (from 100 thousand US dollars).

Another important requirement is compliance with precise procedures specified by the law of Ukraine. Therefore, in case a person wishes to get residence permit in Ukraine and along with that to stay in Ukraine yet when he/she is preparing documents for getting the permit, it is advisable to get residence permit first.

The more so, on account of fulfillment of requirements for getting residence permit, one can take the first steps in order to get permanent residence permit in future (to register an enterprise in Ukraine with the authorized capital over 100 thousand US dollars and to get employed at such enterprise, which will be the reason for getting residence permit for more than one year).

Besides that, significantly less time is required for getting a residence permit – about two months.

Do you want to get residence permit in Ukraine on the grounds of foreign investments? Do you not know where to start? Please call: 0 800 330 967

 

[1] Immigration quote is set by the Cabinet of Ministers of Ukraine according to the established procedure by categories of immigrants. In particular, for persons who made foreign investment into the economy of Ukraine for the sum of not less than 100 000 US dollars.

[2] According to Instruction of the Cabinet of Ministers of Ukraine No. 254

[3] According to clause 1.1. of the resolution of the Board of Directors of the National Bank of Ukraine “About regulation of matters of foreign investment into Ukraine” and Article 1 of the Law of Ukraine “About foreign investment treatment”

[4] According to Article 2 of the Law of Ukraine “About foreign investment treatment”

[5] “Instruction about procedure of opening, use and closing accounts in the national and foreign currencies”,

[6] According to clause 11 of the “Proceedings on applications about providing permit for immigration and applications about its cancellation and carrying out the decisions taken.

[7] According to the Law of Ukraine “About making changes in some legislative acts of Ukraine concerning cancellation of compulsory state registration of foreign investments” dated 31.05.2016 No. 1390-VIII


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