Buying a Security Company by Foreign Investors: Why It's Preferable to Obtaining a License

Establishing a business abroad always requires a deep understanding of local legislation and market peculiarities. In essence, the entire process not only requires financial and technical investments but also involves nuances that may not be immediately apparent. Recently, we were approached by a foreign company interested in entering the Ukrainian market. Their intention was to provide security services, which led to numerous inquiries about how operations function in Ukraine and the optimal organizational approach.

They also inquired whether a foreign company, possessing a security license in their own country, can conduct the same activities based on their license in Ukraine. Our legal team responded that the license obtained in their country holds validity only within its jurisdiction. While it may carry legal weight elsewhere, it does not apply in Ukraine. Upon learning that obtaining a security license in Ukraine requires pre-existing personnel, namely a security organization specialist, our clients began to contemplate how to expedite the process. Establishing this entire process from the ground up, especially with foreign stakeholders, presents significant challenges in terms of time and complexity.

With over 15 years of experience, we prioritize finding the optimal solution for our clients—whether it involves acquiring a pre-established company or registering a new one. This approach significantly enhances the efficiency and success of addressing such challenges. Using this case as an example, let's explore the hurdles that foreigners may face when attempting to establish a security business in Ukraine from scratch.

Company Registration in Ukraine: Key Steps and Requirements for Foreign Founders and Directors

Certainly, we can always assist in organizing and registering a company from the ground up. What is needed to establish a company in Ukraine? For a more comprehensive understanding, you can explore our guides on "Registration of Legal Entities (LLC, Sole Proprietorship)" and "Required Documents for LLC Registration in Ukraine." In short, the initial step is to determine the composition of founders and appoint directors. Why is this crucial?

If the founders are foreign nationals, they must first obtain a tax identification number (also known as a tax number) in Ukraine before registering the company. Only then can the company be registered. Similarly, if a foreign national will serve as the director, they must also obtain a tax number beforehand. If a foreign company or organization is among the founders, a significantly larger amount of documentation is required. This includes documents regarding its registration, a decision to establish a company in Ukraine, information about ownership structure, and copies of passports of ultimate beneficial owners.

Certainly, when working with clients, we explain and detail what exactly needs to be provided and in what format. We also provide a draft resolution and power of attorney for our employees. Additionally, if a foreigner will serve as the director, they must obtain a work permit in Ukraine beforehand. We are always ready to offer our assistance at all stages of the company registration process and handle all bureaucratic tasks. However, not all clients are interested in starting a business from scratch, as this can take a significant amount of time, which may not always be practical. Moreover, when it is also necessary to obtain a business license, the process can be further prolonged.

How to Acquire a Ready-Made Security Business and Avoid Time Expenses on Obtaining a License: Strategy for an Efficient Start in Ukraine

We've discussed the procedure in more detail here: Obtaining a License for Security Activities in Ukraine for Foreigners: Turnkey Business. In short, to obtain a license, the company must meet certain requirements, as it must demonstrate:

• Material and technical infrastructure.
• Resources for conducting security operations.
• Special response vehicles.
• Qualified personnel.

If the details regarding the material and technical base can be overlooked and acquired later, post obtaining the license, the security specialist is precisely required for the licensing process. More detailed information about the criteria they must meet can be found here: Who Can Be the Head of Security Activities. Copies of documents regarding their education, qualifications, and work experience are attached to the license application. The Ministry of Internal Affairs reviews these documents, and if there are no objections, a decision is made to issue the license. The law provides for a period of ten business days for the consideration of documents. However, due to the state of emergency, the timelines may be longer, and the process may extend up to a month. Certainly, not a very reassuring prospect for those seeking to kickstart their business swiftly.

The client was not willing to spend a lot of time waiting for and going through all the registration procedures, as well as obtaining a license from scratch. That's why we found an optimal solution - we offered them to buy a ready-made security business. Of course, if the founders and directors are foreign individuals, we cannot expedite formalities such as notarization of documents in their countries. However, we can prepare all the necessary documents here, in Ukraine, and after obtaining them, proceed as quickly as possible. The main advantage of this approach–purchasing a ready-made company for conducting business–is that there will be no need to spend about a month obtaining a license.

Hence, ready-made security companies serve as a convenient gateway to swiftly and effectively enter the Ukrainian market. With reliable partners and genuine specialists, this process unfolds seamlessly, devoid of unnecessary hassle and delays. Acquiring a pre-existing firm not only saves valuable time but also enables you to focus on strategic business development. Should you be interested in purchasing a ready-made company, don't hesitate to reach out to us. We maintain a stock of suitable companies and will tailor our selection to precisely match your requirements. Importantly, all these companies are purpose-built for sale by us, ensuring not only swift ownership transfer but also the integrity of these ready-made firms. Moreover, we stand ready to provide ongoing legal and accounting support, ensuring smooth and efficient company management.

Don't hesitate to contact us. Just give us a call at our toll-free number 0 800 201 845 or use the "Request a Callback" button to schedule a consultation. Our team is prepared to become your trusted partner in addressing all your inquiries and helping you succeed in Ukraine.