Obtaining a license for security activities in Ukraine for a foreigner: a turnkey business

In 2022, a client from China reached out to us for assistance. Despite residing in Iraq and holding an Iraqi passport, he was unwilling to travel to China due to stringent COVID-related regulations. He had well-defined plans for future endeavors, particularly focusing on demining operations, the search for unexploded ordnance, and providing related assistance in Ukraine.

As a result, he needed to address several critical aspects:

• Establishing legal grounds for his stay in Ukraine.
• Gaining insights into how to initiate the planned activities in Ukraine.
• Organizing a turnkey business.
• Securing the necessary permits and licenses required for his operations.

Following a thorough analysis of the client's requirements and objectives, we developed a strategic action plan to help him achieve his ultimate goal. Our initial steps included obtaining a taxpayer identification number and registering his company.

You may also like: Obtaining a License for Hazardous Waste Management

What are the specificities of registering a company intending to engage in activities related to military operations?

Selecting the appropriate types of activities. There isn't a specific activity code (known as KVED) for demining. The most suitable one is 38.22 – the processing and disposal of hazardous waste. Additionally, given the public safety aspect, it's advisable to include security services and activities related to maintaining public order and safety. As a precaution, we also added the processing and disposal of non-hazardous waste.

Opening a bank account is quite a challenge. If the range of activities were simpler than dealing with hazardous waste, and if the client hadn't explicitly mentioned demining, the bank's reaction might have been different. They might not have asked for detailed explanations about how the client plans to do this, whether they have the qualifications, how they'll access such sites and territories, and where they intend to store or dispose of all this "material." Of course, this shouldn't be within the bank's purview as it falls under the jurisdiction of law enforcement agencies. However, the bank took extra precautions. Eventually, the account was opened. But if you're involved in such a specialized field, you should be prepared for scrutiny at every step, as it tends to attract attention.

Getting a license for security activities. When our client initially approached us and the company was registered, licenses for security activities had not yet been issued. Consequently, we first filed a declaration to commence security activities. However, in 2023, licenses for security activities began to be issued, prompting us to prepare for obtaining one. A crucial aspect of this process is securing a specialist in organizing security activities, who must meet certain specific requirements we previously discussed here. Additionally, starting from late June 2023, a new requirement emerged, necessitating proof that the designated individual is either in reserve status or exempt from conscription. The client did not meet these requirements and lacked suitable candidates. We assisted the client in this matter by providing our own qualified personnel.

Our collaboration extended beyond this stage. We successfully obtained a work permit for the client in Ukraine, secured a residence permit, and continued to provide legal and accounting services. Foreign executives need to receive a salary, which we facilitated.

With our extensive experience and professional expertise, we are confident that we can assist you in obtaining a residence permit in Ukraine and effectively organizing your business. Please don't hesitate to contact us for consultations on registration procedures, licensing, and other necessary services. We are prepared to offer you a tailored approach to ensure the successful realization of your plans in the region.

The cost of obtaining a work permit for a foreigner in Ukraine can be found here.

The cost of obtaining a temporary residence permit can be found here

Please check out the cost of legal business services here