What Are The Procedures Of Foreigners’ Entry And Legalization In Ukraine?
To enter Ukraine citizens of all countries need a visa except those from countries that have a visa-free agreement with Ukraine or can travel to Ukraine as tourists without a visa.
Citizens of EU countries, USA, Canada, Switzerland, Liechtenstein, Japan, Andorra, Vatican, Iceland, Monaco, Norway and San Marino do not need a visa if their stay in Ukraine, which allows a stay upto 90 days. Foreigners shall enter/exit Ukraine through the crossing points on the State frontier, in case of presence of a national passport.
At the time of temporary stay in Ukraine, foreigner has no right to change the status of residence for any other one and to apply for permission for permanent residence in Ukraine.
Since July 1, 2001, in accordance with a Decree of the President of Ukraine N 435 of June 15, 2001 "About the Additional Measures Directed Towards the Realization of Right of Human for Freedom of Movement and Free Choice of the Place of Residence" the registration of foreigners, which are entering Ukraine according to the set rules, and their passport documents is carried out only at the crossing points on the State frontier by the organs of the State Committee for the Protection of the National Frontier of Ukraine. Further registration of foreigners, which are temporary staying in Ukraine according to the set rules and their passport documents, is not carried out by the internal affairs agencies.
Category of passports that should be registered in Ukraine's offices for visas and registration:
• Foreigners who have arrived in Ukraine for a period of more than 3 month;
• To register in Ukraine you should submit to OVIR the following documents: passport (original and copy), standart application forms, 2 photos, medical insurance, rent apartment agreement, etc. The list of documents depends at every individual case. The foreigner should go to OVIR office and adjust the list of necessary documents to submit.
You are welcome to contact us for the additional information: [email protected]
Work Permits for Foreign Employees
Ukrainian employers must obtain work permits for foreigners employed to work in Ukraine. The State Center of Employment of the Ministry of labor and social policy of Ukraine or its authorized regional or city bodies (the “Employment Center”) issue work permits.
To employ a foreign nationa,l employer must prove that the work can not be done by a local employee. General work permits are not issued, and instead a foreigner obtains permission to work at a specific position at a specific enterprise, institution or organization.
The work permit can be issued for up to one year and can be subsequently prolonged. The authorities have 30 days to consider the application and the foreign national is not allowed to work before the work permit is issued. Foreign nationals registered as private entrepreneurs under Ukrainian legislation do not need work permits. Non-compliance with these requirements can result in penalties and possible deportation of the foreign national from Ukraine at the cost of the employer.
Application procedure
List of documents to be presented by employer to the Employment Center:
a request on the official blank of employer;
draft copy of the contract between the foreign and Ukrainian subject of business activity to carry out a specific volume of works or services agreed by both sides;
a copy of the Statute of the Ukrainian legal entity, as well as a copy of its certificate of registration (notarized);
a list of foreign employees, containing their full name, year of birth, passport number, specialty (occupation) and sex;
a power of attorney (or other similar document), authorizing the employer’s representative to act on behalf of the employer before the employment authorities;
a copy of Passport with all registration notes and identification code;
copies of documents confirming the employee’s education and qualifications (translated into Ukrainian, notarized);
a copy of constituent protocol;
a certificate from the body of the state tax authority regarding the employer’s payment of taxes and charges provided by Ukrainian laws;
confirmation of payment of the official fee for obtaining a work permit.
An application for a work permit may be denied for any one of the following six reasons:
the application packet contains provisions that violate Ukrainian laws or treaties;
the contract creates working conditions for the foreigner that are worse than working conditions for Ukrainian citizens in analogous occupations (a rare display of affection for the welfare of foreign workers in Ukraine);
the foreigner or employer submits false information or fraudulent documents;
the foreigner intends to occupy a position or to carry out an activity which is connected with Ukrainian citizenship according to Ukrainian legislation;
there is a proven fact that the foreigner has violated Ukrainian law during his stay on the territory of Ukraine; or
a year has not yet passed since the foreigner was denied a visa into Ukraine.
You are welcome to contact us for the additional information: [email protected]
Types of legal entities. Joint Stock Company
JSC is a legal entity, which has a share capital divided into a specified number of shares of equal and nominal value. Liability of shareholders for the obligations of a JSC is limited by their capital contributions. Since 2004, a JSC may have one shareholder.
There are two forms of a JSC: "open" and "closed". Shares in an open JSC may be offered to the public and traded on a stock exchange, whereas shares in a closed JSC shall be distributed between its founding shareholders. However, upon foundation of a JSC all its shares shall be distributed among its founders. Shares can be offered publicly only after complete payment of a company's share capital. Shares of both open and closed JSC must be registered with the Ukrainian State Commission on Securities and the Stock Market. In addition, an open JSC must satisfy reporting requirements with the Securities Commission.
The minimum capital requirement for a JSC is the equivalent of 1,250 Ukrainian monthly minimum wages (currently equal to UAH 415,000). At the end of the second and each subsequent financial year the value of net assets of a JSC shall not be less than its share capital, otherwise the company is obliged to decrease its share capital and make the relevant amendments to the Charter. If the value of net assets of a JSC is less than the statutory established minimum, then the company shall be liquidated.
Before establishment of a JSC, at least 50% of the share capital shall be paid-in. No distinction is made between authorized and issued share capital. No minimum value of a share is prescribed, but shares shall be nominated in Ukrainian currency. Shares can be in the form of either registered or bearer shares, ordinary (common) shares or preferred shares (total nominal value of which shall not exceed 10% of the company share capital). Shares can be issued either in documentary or non-documentary forms that has an impact on procedures of registration of ownerships rights to such shares.
JSC must create a reserve fund from net profits in the amount of at least 25% of the share capital. At least 5% of annual after-tax profits must be transferred to a reserve fund until the fund is fully paid in.
JSC may have three corporate bodies: the Shareholders' Meeting, the Supervisory Board and the Management. It is allowed not to have the Supervisory Board if there are less than 50 shareholders in a JSC.
The Shareholders' Meeting is the supreme governing body of a JSC and is responsible for the essential decisions of a JSC. To be duly constituted the Shareholders' Meeting requires a quorum of at least 60% of the voting shares to be present. Shareholders' voting rights shall be based on the principle of one share equals one vote. However, a JSC may issue a limited number of preferred non-voting shares. Most resolutions of Shareholders' Meeting shall be approved by a simple majority of the voting shares present at a duly convened shareholders meeting. Amendments to the Charter of the JSC and liquidation of the company shall be approved by at least 75% of the voting shares presented at the meeting.
The Supervisory Board is a governing body that represents the interests of the shareholders between sittings of the Shareholders' Meetings and provides control over the Management activities. The composition and authority of the Supervisory Board shall be specified in the Charter of a JSC.
The Management is an executive body of a JSC that is responsible for the management of day-to-day activities of the company and represent the company against third persons. Management of a JSC may be collective or individual (Director). The structure of the Management and working procedures shall be specified in the Charter of the company.
Types of legal entities. Limited Liability Company
LLC is a similar to a joint stock company, but a LLC does not have shares in a traditional sense. Similar to a JSC investors in a LLC (named as "participants") are only liable for a company's obligation within their capital contributions. However, investors' interests in a LLC are not "securities" and, therefore, are not subject to registration with the Ukrainian Commission for Securities and Stock Exchange. Participants in a LLC own a percentage in the company's capital that should be specified in LLC's Charter.
Starting from 2004 the law allows establishing an LLC with one participant. Participants of an LLC have almost the same rights as shareholders of a JSC. However, there are certain significant differences between LLC participants and shareholders of a JSC: participants of an LLC may transfer shares in the company's capital only based on the consent of all other participants; a participant may exit from a LLC and withdraw part of company's assets proportionally to its share in the company's capital; a participant may be excluded from the company with compensation of its share in company's assets; a successor of a participant may be not accepted to the company with compensation of its share in company's assets; participant's creditor may demand to withdraw participant's share in company's assets for settlement of its obligations.
The minimum capital requirement for a LLC is the equivalent of 100 Ukrainian minimum monthly wages (currently equals UAH 37 500. LLC shall create a reserve fund from net profits in the amount of at least 25% of the share capital. At least 5% of annual after-tax profits must be transferred to a reserve fund until the fund is fully paid.
A LLC has two corporate bodies: the Participants' Assembly and the Management. The Participants' Assembly consists of the participants of the LLC, each of them has votes proportionally to its interest in the company capital. A quorum for the participants' assembly is presence of participants, which hold at least 60% of votes. Most resolutions shall be approved by a simple majority of the votes present at the Participants' Assembly. Resolutions on amendments of the Charter, determination of the principal activities of the company and the exclusion of a participant shall be approved by 50% of all participants' votes. The Management governs day-to-day activities of the LLC and represents the company before third persons. Management of a LLC may be collective (Directorate) or individual (Director). The structure, authority of the Management and working procedures shall be specified in the Charter of the company.
Wholly Owned Subsidiaries
A Wholly Owned Subsidiary (also known as a daughter enterprise or enterprise with 100% foreign investment) is considered as a specific form of a legal entity established exclusively by another foreign legal entity that was its sole owner.
A Wholly Owned Subsidiary (WOS) does not issue shares and has no capital distributed for any shares or portions. There is no minimal capital requirement for a wholly owned subsidiary. A WOS is not specifically regulated, as other forms of business entities such as an LLC or a JSC. The advantage of a WOS is that it offers more flexibility upon formation. Consequently, the disadvantage is that it gives the state authorities more flexibility in interpreting the regulations they wish to apply to a WOS.
Within the last years the legality of a wholly owned subsidiary as separate form of a legal entity has been an open question. Although the Commercial Code allows the formation of a wholly owned subsidiary at the moment in most cases, state authorities are reluctant to register a WOS.
Private Enterprise
Private enterprise is the enterprise acting based on private property of one or several citizens, foreigners, stateless persons and his (their) work or using the employees’ labour. Private Enterprise is also the enterprise acting on the basis of private property of the proprietor that is the legal entity.
Joint Ventures
Before 1998 joint ventures were considered as a distinct form of business entities, but since that time joint ventures are no longer treated as a separate form of business vehicle. However, in certain cases the term "joint ventures" is used to refer to any company with foreign investment, which, actually, can be a Joint Stock Company or a Limited Liability Company.
Ukrainian legislation permits a foreign investor to conduct business in Ukraine without creating a legal entity by entering into a Joint Activity Agreement with a Ukrainian legal entity.
The order of international road transportations according to TIR system in Ukraine
The main document to control the transportation in practice according to TIR system and to regulate actions of custom authorities at goods custom clearance using TIR carnets in Ukraine, is the Order of State Customs Service of Ukraine (SCSU) ¹ 755 of 25.11.2001 with amendments, made by the Order of SCSU ¹ 172 of 5.03.2004.
The aforementioned Order approves:
The execution order of Customs Convention provisions on international haulages with TIR-carnet, in particular:
• terms of TIR operations execution;
• permit for transport vehicles to transport under custom seals and stamps in accordance with TIR Convention conditions;
• permit for carriers – residents to transport according to terms of TIR Convention;
• actions order of customs authorities in case of ingringements, committed by TIR operations execution ( sending notifications of TIR procedure infringement and claims of customs charges and taxes payment to the carrier and guarantee union);
• Rules of TIR – carnet filling in;
• Certificate form to allow the transport vehicle for haulages under customs seals and stamps;
Approved by the Decree of State Customs Service of Ukraine the Execution Order of TIR Convention provisions (hereinafter – the Order) aims to control transportations with TIR-carnet cross the territory of Ukraine, to regulate customs authorities actions by custom clearance of goods, being transported with TIR – carnet and to determine customs authorities employees and carriers actions order under emergency situations or violations during transportation.
Mr. Alexander Ovcharenko
Director of Ukrainian Agency for Law and Investments
What a foreigner should know before crossing the custom border of Ukraine?
Rules of foreigners and stateless person’s entry to Ukraine are regulated by Resolution of Cabinet of Ministers of Ukraine ¹ 1074 of 29/12/1995, the document defines the main features and the order of foreigners’ entry to Ukraine and their stay on the territory of Ukraine.
Rights and duties of foreigners in Ukraine are defined by the Law of Ukraine “On legal status of foreigners and stateless persons” ¹ 1277-IV of 18/11/2003 and other regulatory acts of Ukraine.
If you are going to cross the custom border of Ukraine it’s desirable you to read Resolution of Cabinet of Ministers of Ukraine ¹ 1652 of 13/12/2001, which regulates volumes and the order of persons goods for personal use and own, and such and another things bringing in.
List of data to be declared by person crossing the border of Ukraine and the blank the data to be written in are defined by Resolution of Cabinet of Ministers of Ukraine 748 of 15/07/1997.
When crossing the custom border of Ukraine the foreigner should fill in the Immigration Card.
Rules of filling in the Immigration card
11.Immigration Card
13.Surnamå
14.Name
15.Sitizenship
16.Date of birth
17.Sex
18.Passport ¹
19.Visa type , term of visa
20.Children ( name and date of birth)
21.Purpose of journey
22.Address of inviting company
23.Vehicle (flight) ¹
24.Signature of bearer
This card must be presented together with the passport to Ukrainian border Authorities when crossing the State border of and is kept for whole period of stay in Ukraine.
to be continued…….
Logistics Platform expert
What a foreigner should know before crossing the custom border of Ukraine?
Rules of filling in the Immigration card.
1.The Immigration card of a foreigner is filled by himself or as the exception by the accompanying person, individually for each person, registered in passport and crossing the state border with the owner of the document:
a)at consulate of Ukraine abroad;
c)at transport vehicle of international connection.
2.The representatives of the authorities, issuing the Immigration card to foreigner, in case of need explain the order of its filling.
4.Points such as “Date of birth”, “Passport series”, “Visa number”, Children date of burth”, “¹ of transport vehicle (flight)” should be filled by Arabic numerals.
5.After filling in 1-11 points of “Arrival” and 1-5 points of “Departure” the foreigner puts his signature at points 12 and 6 accordingly.
6.When filing in the Immigration card of a foreigner at consular department of Ukraine abroad, in case of need, the picture of a foreigner is stuck at right top corner of “Departure” part.
Logistics Platform expert
Foreigners’ Entry and Stay in Ukraine. New amendments to the regulations.
On July 11, 2007 the Cabinet of Ministers of Ukraine has issued the Decree No. 917 “On Changes in Regulations on the entry and stay of foreign nationals and stateless persons in Ukraine, their exit from Ukraine and transit through the territory of Ukraine” .
The Decree introduces following changes:
“Foreign nationals, permanently living in the countries list of which is approved by Cabinet of Ministers of Ukraine and stateless persons can cross the state border in the case of their entry to Ukraine or transit through its territory only after their submit of confirmation of their financial provision of their stay in Ukraine, transit through the territory of Ukraine and departure from Ukraine.
Control for presence of financial provision is carried out in the border checkpoints.
Foreigners – citizens of the state, included to the list, and stateless persons, permanently living in it, at entry to Ukraine or transit through the territory of Ukraine should have cash means in 20-fold of subsistence, established in Ukraine on the day of their entry on its territory for each stay month or for the period of stay on less that one month. The presence of these means or guarantee of their presence could be proved by submiting for control:
• money in Ukrainian currency or free foreign currency;
• payment card of international payment systems with extract from personal bank account of the claimer, confirming the presence of amount of money;
• document confirming the hotel accomodation reservation or payment, food payment in Ukraine;
• agreement on tourist services (voucher);
• guarantee letter of a private entrepreneur or a legal entity inviting the foreigner or stateless person while taking obligations to pay all person’s expenses on his staying in Ukraine and departure from Ukraine;
• return travel ticket to the citizenship state, or permanent place of living or third country.”
Foreigners who are citizens of the aforementioned states are allowed to enter Ukraine as before without visa showing their valid passport and stay in Ukraine without visa and residence permit for a short term. The overall duration of the stay must not exceed 90 calendar days per 180-day period from arrival date. The number of entries will continue to stay unrestricted. But foreigners may not stay without visa longer than for 90 calendar days in total during 180-day period.
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