Legal support of investment projects in Ukraine

Cost of services

Cost of services:

from 1600 USD
Legal support of investment activity in Ukraine
from 1000 USD
Audit
5.0
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Reviews of our Clients

What we offer

  • Verify the potential recipient of the investment or investor;

  • Determine the safest legal mechanism for investing;

  • Optimize the taxation of the investor and the recipient of the investment;

  • Develop/verify investment agreement, other necessary documents;

  • negotiate with the parties, finalize the investment agreement;

  • Suggest the best way of getting investments into Ukraine;

  • Provide assistance with import of products/equipment to Ukraine;

  • Arrange visits to notaries/registrars, banks;

  • Help to obtain the missing permits;

  • Structure the work of the recipient of the investment, if necessary;

  • Register companies, ensure restructuring (if required by the investment project);

  • Provide full legal support of the investment project; 

  • Supervise the work of the investment recipient;

  • Represent interests of the investor at controlling bodies;

  • Develop a legal mechanism of return on investment and profitability.

Content

Documents required

List of documents
Information about the client
Information about the Investment Recipient
Information about the Investment Project

Types of investment in Ukrainian business

Ukrainian businesses can grow not only through loans and grants, but also with the involvement of retail investors, for whom this option could be an excellent alternative to standard investment strategies with moderate returns.

The market is replete with legal tools, which allow a company to raise financing: 

  • “investment” contracts; 

  • repayable financial assistance; 

  • management of the investor’s facilities;

  • acquisition of corporate rights by the investor;

  • joint participation, etc. 

We develop a specific legal path, taking into account the needs of the Client, achieving the greatest efficiency of the investment project. The company receives the long-awaited financing, and the investor receives the expected return.

Turning to us, you get:

  • Assistance in finding an interesting investment project that matches your needs.

  • Clear pre-calculation of risks and profitability of the project.

  • Legal control of both the investment process and the entire period of participation in the project, including profit making issues.

Service packages offers

Project Audit
from 1000 USD
  • analyze the investment project;
  • check the documents provided by the recipient of the investment (contracts, title and internal documents);
  • collect information about the project from public sources;
  • find and analyze litigation;
  • we will provide a written opinion with recommendations, risks and taxation issues.
Audit+Documents
from 1600 USD
  • analyze the investment project;
  • check the documents provided by the recipient of the investment (contracts, title and internal documents);
  • collect information about the project from public sources;
  • find and analyze litigation;
  • we will provide a written opinion with recommendations, risks and taxation issues.
Additional:
  • prepare/make amendments to the “investment” agreement;
  • we will propose changes to the internal documents of the recipient of investments to protect your interests;
  • prepare other necessary documents depending on the project.
Top
Support
from 3000 USD
  • analyze the investment project;
  • check the documents provided by the recipient of the investment (contracts, title and internal documents);
  • collect information about the project from public sources;
  • find and analyze litigation;
  • we will provide a written opinion with recommendations, risks and taxation issues;
  • prepare/make amendments to the “investment” agreement;
  • we will propose changes to the internal documents of the recipient of investments to protect your interests;
  • prepare other necessary documents depending on the project.
Additionally:
  • at the request of the client, we will delve into certain aspects of the project: corporate, labor, tax, land, antitrust issues, resolutions and risks of litigation / audits;
  • we will negotiate on behalf of the client;
  • we will advise on the cross-border movement of investments;
  • structure the deal if necessary;
  • we will accompany the conclusion of the transaction (we will organize a visit to the notary, registration actions).

What is the service fee for supporting investments in Ukrainian projects?

We set the price depending on the scope of work, because we accompany projects of different scale - from the purchase of small premises, to the participation of the investor in the construction of an industrial complex.

Often the first stage is a general legal analysis, studying the investor’s needs and developing a plan of action. After that we make an individual offer which is the most reasonable for the investor.

For example, an investor wants to purchase a “share” in a manufacturing business. We carry out an initial analysis, determine the best way to structure the deal, for example through the purchase of real estate, corporate rights, the establishment of a new company. 

At this stage, much depends on the legal status of the recipient of the investment and its involvement in the process. For example, we check:

  • its trustworthiness (within legal limits and in open sources);

  • a history of previous rounds of investment, if any;

  • availability of state permits;

  • registration of the rights to non-negotiable assets;

  • whether the internal documents (articles of association, etc.) are drafted correctly and whether they protect investors;

  • transparency of the corporate structure;

  • court disputes, planned inspections, if any;

  • the credit load, proper formalization of  the relations with the key counterparties (according to the documents provided by the recipient of the investment).

Then we prepare a list of documents and develop a step-by-step guide. Such a guide gives the Client an understanding of the cost of full legal support of the project.

Our legal expertise can reveal flaws in the object of investment, for instance, not all the current assets have been registered correctly, not all permits have been obtained, the Articles of Association require further elaboration. In this case, we offer the investor a number of additional steps and estimate their cost. 

If the investor wants to purchase, for example, a correctly registered apartment, and we have checked everything and see no risks, the procedure will be simple and affordable.

What documents do you need to invest in Ukrainian projects?

The list of documents depends on the investment project. For example, in case of investments in real estate, you need at least the seller’s documents of title; the purchase of corporate rights is accompanied by a check of the corporate history and internal documents of the investment object.

We study basic information about the project and determine the list of documents to be reviewed. The Client gives this list to the recipient of investment, then we verify the completeness of the provided documents and make a list of documents required to close the transaction.

Why us

We know how to invest efficiently
Many years of experience allow us to develop the most simple and transparent mechanisms of investment. We suggest to the Clients the shortest legal way of investing, without unnecessary formalism.
Our Clients invest without legal risks
We know all investment pitfalls from experience. We allow our Clients to concentrate on their investment objectives rather than being distracted by legal formalities.
We look beyond formal legal procedures
Investorєs business interest is our priority, so our legal expertise gives the Сlient not only safety and efficiency, but also forms a comprehensive understanding of the Ukrainian investment market. Any lawyer can register a company, but we give investors a full vision of the process and the result.
Our team will prevent you from investing in dubious projects
If we see any legal risks - we always inform the Clients of them. Even if the project involves a lot of legal work. Your interests are always a priority for us.
We offer full investment support
In practice, legal assistance is needed at all stages of the project life, so we accompany all stages of investment - from the registration of the transaction, to the withdrawal of investments, as well as assistance in removing legal obstacles in the course of its development.
Clients gain additional benefits from the quality of our work
By conducting quality due diligence, we can identify shortcomings in the activities of the investment recipient, which allows the investor to negotiate a reduction in value. While working on the deal, we achieve the best conditions for the investor, we choose the lowest tax burden. The investor’s benefit can be several times greater than the legal expenses.

We are ready to help you!

Contact us by mail [email protected], by phone number +38 044 499 47 99or by filling out the form:

What must be considered when investing in a small and medium-sized business in Ukraine?

Foreign investments are always of current concern for the Ukrainian economy. The Tax Code of Ukraine regulates the double taxation, and foreign investments are protected by the law with the same name - the Law On Protection of Foreign Investments in Ukraine.

This law guarantees the transfer of income to foreign investors. And the Law of Ukraine On Investment Activity is even broader and covers both foreign investments and “local” investments. This law provides favorable conditions for investors who invest in the most important areas of public needs, namely the social sphere, technical and technological improvement of production, creation of new jobs for citizens in need of social protection, etc.

A key aspect of successful investment has always been a quality legal expertise of the investment object. The process is similar to car diagnostics before buying - without it you will not know what you spend money on and what hidden defects can be revealed already “on the road”. Such an inspection usually consists of the basic components: 

  • legal history; 

  • registration of the right to the assets;

  • necessary permits;

  • correct internal documents;

  • legal disputes. 

However, there may be many additional aspects, it all depends on the specifics of your case.

It is important to understand what legal regulations an investor may encounter after entering a project. For example, in the case of investments in the real sector, you need to know what documents should accompany the operation of, say, a factory, as well as what legislative trends prevail in this market.

After checking the legal purity of the investment recipient, you need to take care of the correct execution of the transaction, a properly chosen format of cooperation.

How to conclude an investment agreement in Ukraine?

In order to prepare a full-fledged investment agreement and provide for as many details as possible, we will need detailed information on the project and expectations of each party, or at least the investor’s goals.

Legislation does not provide specific requirements for this kind of agreement, but contains many rules, depending on the investment area which such an agreement must comply with. 

If the matter concerns a specific object, such as a land plot, for example, the law establishes restrictions on the purchase, so you will need legal assistance. Some transactions are better (in the case of a loan), or even obligatory (in case of real estate) to conclude in a notarial form. 

If you are acquiring corporate rights, you will need to attract the registrar. That said, often even the most formalized transactions may be accompanied by the conclusion of investment agreements.

What can influence the success of an investment project?

The legal component of investment success in Ukraine is no less important than the economic one. Often even owners themselves are not aware of legal risks of business, discovering weaknesses during checkups by investors. And the risks can be diverse - from the lack of permits, to the prospect of fines from the state regulator. All of these nuances are revealed already in the course of the inspection and sometimes have a significant impact on the agreements of the parties and the formalization of the relationship.

Answers to frequently asked questions

How to determine whether an investment project has a chance of receiving state support?

The rules of choosing investment projects that may receive state support are set out at the legislative level by the Resolution of the Cabinet of Ministers No. 835 dated November 13, 2013. The selection is carried out on a competitive basis. One of the significant conditions of the tender is the availability of the Conclusion on the state expertise of the investment project. On the basis of this conclusion, it will be possible to say whether it makes sense to move further in the direction of receiving support from the state. Any preliminary assessments by private experts are only the words of private individuals.

May I use credit funds for investing, and are there any risks?

Indeed, you may use loan money to make investments. Moreover, if an investment project is granted state support, funds may be allocated to partially or even fully repay the interest on a loan to implement such a project.

Can a non-resident invest in Ukraine on an equal basis with a citizen?

As a general rule, foreign investors have the same rights as citizens of Ukraine, they have the same options for judicial and extrajudicial protection of interests. However, non-residents can acquire some objects with restrictions (for example, land), there may be nuances in the joint conduct of various kinds of businesses (for example, in the field of financial services). Investors should also keep track of legislative changes in the sphere of currency regulation in order to understand the peculiarities of withdrawal of investments from Ukraine.

Is legal due diligence of the investment object a mandatory condition prior to purchase?

Legislation does not require legal due diligence, but in practice investors go through this process, with varying degrees of involvement. For some, a check of basic legal nuances is sufficient, while others conduct an in-depth check of every aspect of the business/object in which they are investing.

What does legal support for investment projects consist of?

Our company not only can accompany investment projects and provide advice to investors, but also analyze the contract for the benefit of the investment recipient. Of course, provided that the investor is not our Client.

In our practice, we dealt with a draft agreement where the investor wanted to write the terms in such a way that the entire net income of the investee’s company would go towards repayment of the investment. Of course, we warned the recipient of the investment of that fact.

Procedure of legal service rendering for investment activity

The scope of service and terms of payment are discussed with the Client before the start of work. Then we conclude a legal services agreement.

The work starts after full payment or partial payment, if it is stipulated by the terms of the agreement.

Legal advice for investment projects in Ukraine

If you want to invest in an investment project or, on the contrary, if you are an investment recipient and want to get answers to basic questions about project support, don;t hesitate to contact us for an introductory consultation. The lawyers will answer the following questions:

  • What is the legal support of investment projects with our company?

  • What is the service fee?

  • What will be included in the legal support of an investment project depending on your case?

  • What benefits will you receive by working with us?

If you decide to order support for starting an investment project with us, the price of the introductory consultation will be included in the service fee.

If you have many questions or they require non-standard solutions, we recommend ordering the Road Map. This type of consultation involves a comprehensive analysis of your case and development of a step-by-step guide to its solution, which you can use on your own. The Road Map costs more than introductory consultation, but it is an independent legal conclusion with answers to complex questions.

The most common procedure of investment project support

After getting the introductory consultation or the Road Map, work on the project begins. We check the company or object, agreeing in advance with the investor on the extent of this inspection: we can review the documents of title and check the necessary registrations, or go deep into the history of the company (the transfer of rights to facilities), analyze how the project operates now (permits, staffing, contracts with partners) and how it will work after the investment round closure. The result of the inspection - a report on the results of legal due diligence, or verbal discussion with the investor about the specifics of the project. 

Then, together with the investor and the recipient of the investment, we determine the format of cooperation, prepare the contracts, register the companies (the transfer of rights to the shares), develop the investment agreement, conduct negotiations, help the investor with the flow of funds, and accompany the transaction. If there are several investors, we coordinate the necessary actions with them, making sure that the relationship between investors is properly regulated. 

The process usually does not end with the closing of the deal. Our involvement in project life helps to avoid crises and misunderstandings between the parties. We also help to avoid additional attention of controlling bodies, we accompany inspections and protect the investor’s interests. 

As a result of successful investment in a short-term project - we help the investor with the withdrawal of funds and the sale of the object. It is not uncommon for investors to reinvest their earnings into new instruments, which we successfully help them with.

If you need qualified legal assistance in organizing your investment activity, don’t hesitate to contact us!

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