If money loves an account, then assets – management, and competently. Any asset that does not bring profit to the owner company is useless. Moreover, this state of affairs contradicts the nature of the asset and even the definition presented in any financial dictionary.
Asset management is a responsible occupation and requires a high level of awareness from the process operator. Even when an ordinary citizen wants to open an account and put his savings there, he is engaged in choosing the optimal banking institution for a long time and carefully. What can we say if much larger amounts are deposited? The company’s own assets are managed only in exceptional cases, when there is its own financier on staff, who is able to competently manage the resource entrusted to him. In other situations, companies prefer to seek help from other companies for which asset management is the main area of activity. The main goal of this is to generate a parallel source of income: the company is engaged in its direct work, and the assets are working for it in the meantime.
In the context of this information, it is not difficult to assume why the services of companies that help other enterprises competently manage assets are in stable demand, and the number of companies themselves is growing rapidly.
At the same time, it would be naive to believe that the creation of an asset management company, like, indeed, any other financial enterprise, is a simple and short procedure. When it comes to finances, the state is particularly strict with applicants for the provision of such services. However, it is not difficult to explain such a strategy: these services are initially included in the list of state services, and the provision of a permit is a kind of guarantee from the state, which grants the right to provide them to a private person and vouches for their quality.
Thus, an entrepreneur applying for a financial license will have to prepare a significant package of documentation and prepare for the fact that he will be able to bring the business to the starting position in just a few months. At least if we talk about legal activities. If this prospect does not suit him, it makes sense to purchase a ready-made AMC, which will already have a certificate of state registration, a license, and an established reputation. You can learn more about purchasing a ready-made AMC on this page.
AMC as a key entity in the investment process
Asset management companies are key entities in the investment process that ensure the functioning of investment funds in accordance with the current legislation of Ukraine.
According to Ukrainian legislation, asset management companies (AMCs) and investment funds are in close relationship, which is regulated by the Law of Ukraine “On Collective Investment Institutions” and regulatory acts of the National Securities and Stock Market Commission (NSSMC).
The essence of the relationship:
Asset management:
investment funds, as collective investment institutions (CIIs), do not have the right to independently manage their assets. This function is legally delegated to specialized asset management companies (AMCs), which are professional participants in the stock market..
Functions of the AMC in relation to investment funds::
the AMC creates an investment fund and registers it with the NSSMC;
the AMC manages the assets of the investment fund in accordance with the investment declaration and prospectus;
the AMC makes decisions on the purchase and sale of securities, real estate, corporate rights, bank deposits and other investment instruments permitted by law on behalf of the fund;
the AMC is responsible for maintaining the fund’s accounting, tax accounting, reporting, as well as for compliance with the requirements for disclosure of information to investors and the NSSMC.
Legal nature of the relationship:
the AMC and the investment fund are legally separate entities;
the AMC acts as a manager acting in the interests of the fund and its investors;
the relationship between the AMC and the fund is formalized by an asset management agreement.
Regulation of activities:
the activities of the AMC are licensed and supervised by the National Securities and Markets Commission of Ukraine;
investment funds can be corporate (legal entity) or unit trusts (without legal entity status), but in any case the assets are managed by the licensed AMC.
Liability of the AMC:
the AMC bears full responsibility for the management of the assets of the investment fund, including liability for losses caused by violation of legislation, investment rules or investment declaration.
Foreign citizens can obtain a permanent residence permit in Ukraine based on an investment. The relevant provision is contained in the Law of Ukraine “On Immigration”. Any foreign citizen who invests in the economy of Ukraine and proves that the funds were obtained legally can obtain a permanent residence permit.
In order to obtain a permanent residence permit through an investment, foreign citizens must invest in the economy of Ukraine an amount equivalent to $100,000 (US dollars) or more. In this case, the investment must be issued in accordance with the procedure approved by the Cabinet of Ministers of Ukraine.
Legal requirements for obtaining a permanent residence permit through investment.
In order for an investment to be considered a basis for obtaining a permanent residence permit, foreign citizens must make it taking into account the requirements of the law. They are as follows:
the investment is made either by creating a new company or by purchasing an existing legal entity. An individual who wishes to obtain a permanent residence permit must be one of the founders;
the investment is made in a convertible foreign currency. These include 14 currencies (including the US dollar, euro, pound sterling, Swiss franc, etc.), as well as precious metals;
the investment amount is $100,000 or the equivalent in other currencies at the exchange rate on the day of the investment;
to obtain a permanent residence permit, the investment must be registered with the Ministry of Economy;
the invested money must have a legal origin with the possibility of confirmation (declaration of income of an individual, non-resident of Ukraine).
An important nuance: the funds must be invested in the economy, that is, the person must invest money for further profit. And this must be remembered if you want to get a permanent residence permit by purchasing real estate.
Is it possible to obtain a residence permit by purchasing real estate?
In Ukraine, purchasing real estate is not considered an investment. It does not matter whether you buy it for yourself or for further rental. According to current legislation, this is an investment for needs, therefore, the owner does not have the right to a residence permit.
However, it is still possible to obtain a permanent residence permit when purchasing real estate. The solution is to register real estate (apartment, office, warehouse, etc.) as an object for investment. That is, if an individual buys real estate not directly, but through a company, this is already an investment from the point of view of Ukrainian legislation. The mechanism looks like this:
a foreign citizen (non-resident of Ukraine) opens a private enterprise in Ukraine;
for this purpose, the organization contributes funds in the equivalent of more than $100,000 (US dollars);
submits documents to the Ministry of Economy in order to register the funds as an investment;
buys real estate after registration is completed.
Property purchased through a company is owned by the company itself – the property of a legal entity. Thus, it can already be considered an investment. To avoid any further issues, it is better to conclude a lease agreement with your own company. After some time, you will be able to register the property in your name as an individual.
What documents are required to obtain a permanent residence permit through investment in the economy?
If you decide to obtain a permanent residence permit based on an investment by purchasing real estate through a legal entity, you need to prepare the following package of documents. It includes:
constituent documents of the LLC;
an investment agreement (if any);
a bank statement confirming that there is an amount equivalent to $100,000 in the account;
a passport, copies with a notarized transfer;
a certificate of family status;
confirmation of the place of residence abroad;
the consent of the second spouse to the relocation of children (if the mother or father moves with children);
medical certificates;
a document confirming the absence of an outstanding criminal record.
All these documents, as well as receipts and checks for payment of state fees and duties, are submitted to the State Migration Service of Ukraine, which makes the decision.
The Zigma Law Firm offers clients services in obtaining a permanent residence permit through investment in the economy, including through the purchase of real estate. Our specialists and experts will provide advice, help open or buy a company, and represent your interests in all state bodies and instances. We provide turnkey services for obtaining permanent and temporary residence permits. Zigma is your opportunity to obtain the necessary documents in the shortest possible time and with a 100% guarantee.
Ask a question about obtaining a residence permit based on investment in Ukraine.
Many foreign citizens come to Ukraine, and many stay in our country for a long time. Some people stay here for life, work, and start families. However, in order to stay in Ukraine on a long-term basis, you need a residence permit. If you plan to start a family in Ukraine, you can obtain a residence permit in Ukraine based on marriage or a marriage contract. The Zigma Law Firm offers services for obtaining a residence permit in Ukraine upon marriage with a citizen of Ukraine. We provide turnkey services for obtaining all necessary documents.
What do you need to know about obtaining a residence permit based on marriage?
If you plan to obtain a residence permit in Ukraine upon marriage, it is recommended to arrive in the country no less than a day before the date of the marriage and obtain an entry stamp and visa. In addition, it is not recommended to leave the country less than a day after the marriage. If you urgently need to leave the territory of Ukraine, it is better to do this the next day after the marriage.
After you have submitted an application and a package of documents, you need to wait for the decision of the State Migration Service. According to the law, up to 15 working days are allotted for issuing the decision. No later than this period, you must issue the necessary document or send a reasoned refusal. In the event of an illegal decision of the State Migration Service, you can appeal it to higher authorities or in court with the help of a lawyer or independently.
After receiving the certificate, a person is obliged to register at the place of residence – to issue a residence permit. For this, according to the law, 30 calendar days are allotted. That is, within a month, a foreign citizen who has received a residence permit in Ukraine by marriage or on another basis is obliged to provide information about his place of residence to the State Migration Service.
Extension of a temporary residence permit in Ukraine on the basis of marriage is carried out according to a similar procedure. It is necessary to submit a similar package of documents + the previous residence permit. Documents must be submitted no later than 15 calendar days before the expiration of the previous document.
What kind of residence permit can I get?
According to the current legislation of Ukraine, there are two types of residence permits in Ukraine. You can obtain one of them, namely:
temporary residence permit – upon marriage. A temporary residence permit can be obtained for a period of 1 year. After that, it can be extended for another 1 year.
permanent residence permit in Ukraine upon marriage. This document has no expiration date. The person who issued the document can stay in the territory of Ukraine and enjoy the benefits for an unlimited amount of time (however, this document must be changed/updated every 10 years).
It is important to know that a residence permit in Ukraine on the basis of marriage gives the opportunity to obtain citizenship under an accelerated procedure. As a standard, to obtain citizenship you need to live in the territory of Ukraine for more than 5 years. If you intend to obtain citizenship and a passport of Ukraine on the basis of a marriage certificate, 2 years of residence in the territory of Ukraine with your wife or husband are enough.
What privileges does the permit provide?
A residence permit is an important document for a foreign citizen who plans to reside in Ukraine. It provides a number of privileges, including:
legal stay in Ukraine;
work or opening a business without a work permit;
studying in secondary, secondary specialized or higher educational institutions without additional documents;
receiving any banking and financial services, etc.
However, the permit has certain limitations. For example, if you received a residence permit in Ukraine by marriage or for any other reason, you do not have the right to vote – you cannot participate in elections to state authorities. However, after 2 years of residence in Ukraine, you can apply for citizenship and enjoy all the rights that a citizen of our country, Ukraine, is entitled to.
What documents are required to obtain a residence permit?
a notarized copy of the foreign citizen’s passport with a notarized transfer;
a notarized copy of the marriage certificate;
medical insurance for a period of 1 year;
It is important to know that citizens of countries with which Ukraine does not have a visa-free regime must have an entry visa in their passport – a type “D” visa. For citizens of countries with which Ukraine has a visa-free regime, this requirement does not exist. The passport must only have an entry stamp, which confirms the legality of the foreigner’s (non-resident’s) entry into the territory of Ukraine.
The Zigma Law Firm offers clients services for obtaining a residence permit in Ukraine based on marriage or on any other grounds. We offer turnkey services. Our specialists will provide advice, prepare documents, and represent your interests in government bodies and instances.
Both experienced investors and beginners utilize the most popular tool—an investment fund—to preserve and increase their capital. Individuals and legal entities have the right to invest their resources in this financial organization, which then allocates them into various assets in financial markets. The main goal is to generate profit and subsequently distribute it among investors.
There are different types of investment funds, among which the most common are CIF (corporate investment fund) and UIF (unit investment fund). The first is established in the form of a joint-stock company to manage assets, while the second is managed by a management company. All activities of the funds are regulated by the Law of Ukraine “On Investment Funds and Investment Companies” which defines the structure, main principles of operation, management mechanisms, and legal aspects. This way, investors reduce risks and receive stable income.
CIF (Corporate Investment Fund)
A corporate investment fund is an institution that attracts investors’ funds as assets to generate profit. That is, a CIF is a legal entity that manages investors’ assets in the form of a closed joint-stock company. Relations between shareholders are clearly regulated. Participants purchase shares of the fund, thereby confirming their right to a share of the profit. Depending on the type of CIF, investors can either freely buy and sell the fund’s shares or invest funds for a certain period without the possibility of early exit.
A corporate investment fund invests funds in stocks, bonds, real estate, deposits. Profit is formed due to the increase in the value of assets or income from investments. The received funds can, by agreement of the parties, be paid as dividends to shareholders or reinvested.
The structure of a CIF includes several key elements. The highest governing body is the general meeting of shareholders, which includes all shareowners. They make strategic decisions, such as amending the charter, appointing and dismissing supervisory board members, and liquidating or reorganizing the fund. The fund administrator maintains the shareholder register and ensures compliance with regulatory standards. The supervisory board oversees the fund’s overall operations and monitors the activities of the asset management company (AMC). While CIFs may manage their assets independently through the board of directors, they more often delegate this responsibility to an AMC based on a relevant contract. The executive body is responsible for investing funds in various assets, buying and selling fund assets, and maintaining financial reporting.
The depository, as an independent company, safeguards the fund’s assets, maintains records, controls transactions, and verifies the legality of the AMC’s actions. Independent oversight is conducted by an auditing firm. The entire operation of a CIF is regulated by legislation, and the fund is obligated to comply with disclosure and reporting requirements to state regulators. The National Securities and Stock Market Commission (NSSMC) oversees the activities of funds, issuing licenses, ensuring legal compliance, and imposing sanctions for violations when necessary. A well-defined CIF structure with distributed functions ensures efficient management and control.
Who can invest in CIF?
Various categories of individuals have the right to make investments. This depends on the type of fund, its structure, and investment policy. Individuals, whether citizens of Ukraine or other countries, become shareholders after purchasing shares. The timing and conditions of redemption depend on the type of fund. Open-ended investment funds (CIFs) are usually available to a broader range of investors, while private or venture funds may have stricter participant requirements. Closed-end corporate investment funds may be accessible only to a limited group of individuals. Additionally, the fund’s charter may specify a minimum investment threshold.
Companies and corporations, as legal entities, allocate their free capital to the fund. Large financial institutions such as banks and insurance companies invest in closed-end CIFs, which are focused on long-term investments.
Taxation of CIFs
CIFs in Ukraine operate under a special tax regime that allows them to function efficiently and attract investors. A CIF is exempt from corporate income tax, provided that its activities comply with the law, meaning that all income from investment activities remains untaxed until it is distributed among shareholders.
Shareholder dividends are taxed at the owner’s level, so it is essential to monitor legislative changes. The current rules are as follows:
For individuals (Ukrainian residents): Paid dividends are subject to personal income tax (PIT) at a rate of 9% and a military levy of 5%. Transactions involving securities: PIT – 18%, military levy – 5%.
For legal entities: Dividend tax is paid according to general corporate taxation rules. Profit from the sale of shares is taxed at the standard corporate income tax rate of 18%.
Administrative services received by a CIF (such as asset management) may be subject to VAT at the general rate of 20%.
Authorized сapital of a Corporate Investment Fund
The authorized capital of a corporate investment fund is the amount of money or other assets contributed by shareholders during the establishment of the organization, which is used for investment activities. At the time of the fund’s registration, the minimum capital must not be less than 1,250 times the minimum wage. At least 30% must be paid before registration, and the full contribution must be made within the first year of the fund’s operation. The capital is formed from cash, property, or property rights. It can be increased through additional share issuance or decreased through share buybacks or a reduction in their nominal value.
Procedure for уstablishing a Corporate Investment Fund (CIF)
The process of establishing a CIF can take from 3 to 6 months, depending on the complexity of the structure and the speed of the registration procedure. The key stages include:
Decision to establish the fund – Determination of key parameters, including type, investment strategy, amount of authorized capital, and organizational structure.
Preparation of founding documents – Approval of the charter, decision on establishment, information about founders, authorized capital, and investment declaration.
Registration of the CIF – Submission of documents to the Unified State Register (USR), assignment of an identification code (EDRPOU), and opening of a bank account.
Issuance of shares – Registration of the share issuance with the National Securities and Stock Market Commission (NSSMC), inclusion in the state register of collective investment institutions (CII), and depositing shares in Ukraine’s depository system.
Obtaining an asset management license – License for the Asset Management Company (AMC).
Commencement of operations – Placement of assets and sale of CIF shares to investors.
Compliance with legal requirements ensures the fund’s transparency and attractiveness to investors.
To receive consultation from a leading financial law expert on all aspects of CIF registration in Ukraine, visit this page.
Advantages and disadvantages of a CIF
Among the disadvantages of a CIF, experts highlight the following aspects:
A complex and time-consuming registration process;
High costs for AMC services, auditors, depositaries, and fund administrators;
Limited liquidity for closed-end CIFs;
Risky AMC decisions that may lead to investor losses;
However, these drawbacks can be outweighed by the benefits. The advantages include tax exemption on profits, risk diversification, the ability to invest in a wide range of assets, a flexible structure (open, closed, interval), asset protection from founder debts, and transparent regulation.
Comparative table of requirements for specialized CII (collective investment institution)
money market funds
government securities funds
bond funds
equity funds
index funds
banking metals funds
Assets that may be included in the fund’s assets
funds in national and foreign currency;
savings (deposit) certificates, current and term deposits up to two years (including in foreign currency);
government securities with a maturity of no more than two calendar years;
local loan bonds with a maturity of no more than two calendar years;
debt securities with a maturity of no more than two calendar years, secured by a state or local guarantee;
debt securities with a maturity of no more than two calendar years, the repayment and receipt of income of which are guaranteed by the governments of foreign states, the sovereign credit rating of which is not lower than the level established by the Commission;
corporate bonds with a maturity or early repayment by the issuer of no more than one year;
derivatives, the underlying asset of which is the assets specified in paragraphs 1-7 of this part.
funds in national and foreign currency;
deposits (in national and foreign currency) in state banks of Ukraine;
savings (deposit) certificates of state banks of Ukraine;
government securities;
local loan bonds;
debt securities secured by a state or local guarantee;
debt securities, the repayment and receipt of income of which are guaranteed by the governments of foreign states, the sovereign credit rating of which is not lower than the level established by the Commission;
debt securities issued by international financial organizations;
derivatives, the underlying asset of which is the assets specified in paragraphs 1-8 of this part.
funds in national and foreign currency;
deposits in national and foreign currency;
savings (deposit) certificates;
corporate bonds;
bonds of foreign issuers traded on foreign stock exchanges, the list of which is determined by the Commission;
government bonds of Ukraine;
local loan bonds;
mortgage bonds;
preferred shares of Ukrainian issuers;
securities of specialized government securities funds;
securities of specialized exchange-traded index funds, the index basket of which includes only bonds;
derivatives, the underlying asset of which is the assets specified in paragraphs 1-8 of this part.
funds in national and foreign currency;
deposits in national and foreign currency;
savings (deposit) certificates;
shares of public joint-stock companies;
shares of foreign issuers and securities of foreign exchange funds traded on foreign stock exchanges, the list of which is determined by the Commission;
securities of specialized exchange index funds, the index basket of which includes only shares;
depositary receipts for securities specified in paragraphs 4-6 of this part;
derivatives, the underlying asset of which is the assets specified in paragraphs 1-6 of this part
funds in national and foreign currency;
securities included in the index basket of the selected stock exchange index. The requirements for the index and the methodology for its calculation are established by the Commission.
funds in national and foreign currency;
deposits in national and foreign currency;
savings (deposit) certificates;
government securities;
debt securities secured by a state guarantee;
banking metals in ingots stored in bank vaults;
property rights under agreements with a bank to pay the cash equivalent of banking metal at its current exchange rate;
securities of specialized exchange-traded index funds, the index basket of which includes exclusively banking metals;
derivatives, the underlying asset of which is banking metals.
money market funds
government securities funds
bond funds
equity funds
index funds
banking metals funds
The structure of funds’ assets must simultaneously meet the following requirements:
the total value of local loan bonds and corporate bonds cannot exceed 30% of the total value of the fund’s assets;
the total value of bonds secured by a state guarantee and bonds whose repayment and income are guaranteed by foreign governments cannot exceed 50% of the total value of the fund’s assets;
the total amount of liabilities of one bank cannot exceed 25% of the total value of the fund’s assets.
the total value of bonds of enterprises secured by a state or local guarantee, and bonds of local loans cannot exceed 40% of the total value of the fund’s assets;
the total value of debt securities, the repayment and receipt of income of which are guaranteed by the governments of foreign states, and debt securities issued by international financial organizations cannot exceed 20% of the total value of the fund’s assets;
the value of government bonds of Ukraine cannot exceed 35% of the total value of the fund’s assets;
the total amount of liabilities of one bank cannot exceed 25% of the total value of the fund’s assets.
the total value of local loan bonds cannot exceed 40% of the total value of the fund’s assets;
the total value of bonds of foreign issuers traded on foreign stock exchanges, the list of which is determined by the Commission, cannot exceed 20% of the total value of the fund’s assets;
the total value of securities of specialized government securities funds and specialized exchange index funds cannot exceed 20% of the total value of the fund’s assets;
the total value of preferred shares cannot exceed 10% of the total value of the fund’s assets;
the total amount of liabilities of one bank cannot exceed 25% of the total value of the fund’s assets.
the total value of securities and depositary receipts, the share of each of which in the total value of the fund’s assets exceeds 15%, cannot exceed 50% of the total value of the fund’s assets;
the total amount of liabilities of one bank cannot exceed 25% of the total value of the fund’s assets;
the total value of securities of specialized funds and securities of foreign exchange funds cannot exceed 30% of the total value of the fund’s assets.
the value of the securities must be at least 80% of the total value of the fund’s assets;
the number of securities included in the fund’s assets must be proportional to the number of securities included in the index basket. In this case, the difference between the share of securities of one issuer in the total value of securities on which the index is calculated and the share of such securities in the value of the fund’s assets consisting of securities cannot exceed 10%, unless otherwise established by the Commission.
the total value of bank metals in bullion, funds and property rights under agreements with the bank for the payment of the cash equivalent of bank metal at its current exchange rate must be at least 70% of the total value of the fund’s assets;
the total amount of liabilities of one bank cannot exceed 25% of the total value of the fund’s assets.
money market funds
government securities funds
bond funds
equity funds
index funds
banking metals funds
Forbidden
place more than 20% of the total value of the fund’s assets in the liabilities of one bank;
purchase or additionally invest in securities of one issuer, except for government bonds of Ukraine, more than 10% of the total value of the fund’s assets;
purchase or additionally invest in securities of one issue more than 10% of the total value of the fund’s assets;
purchase or additionally invest in corporate bonds and local loan bonds, the credit rating of which does not correspond to the investment level determined by an authorized or recognized international rating agency according to the National Rating Scale.
to purchase or additionally invest in securities of one issuer, except for government bonds of Ukraine, more than 10% of the total value of the fund’s assets;
to place more than 20% of the total value of the fund’s assets in the liabilities of one bank.
place more than 20% of the total value of the fund’s assets in the liabilities of one bank;
purchase or additionally invest in corporate bonds, mortgage bonds and local loan bonds of one issuer more than 15% of the total value of the fund’s assets;
purchase or additionally invest in securities of one specialized fund more than 10% of the total value of the fund’s assets.
purchase or additionally invest in securities of one issuer more than 15% of the total value of the fund’s assets;
purchase more than 10% of the total volume of securities of one issue;
place more than 20% of the total value of the fund’s assets in the liabilities of one bank.
place more than 20% of the total value of the fund’s assets in the liabilities of one bank.
MIF (Mutual Investment Fund)
A MIF is not a legal entity. It is formed from the funds of investors (unit holders). The assets of mutual investment funds are managed by an asset management company (AMC). Each investor receives a unit, which confirms their share in the fund. The value of the unit fluctuates depending on the success of the investments, which may include stocks, bonds, currencies, and real estate. The AMC manages the assets, while investors gain profits or incur losses.
The structure of a MIF is simpler than that of a corporate fund. The AMC handles all operations, and its activities are overseen by a depository, an auditor, and a regulatory authority. Investors do not participate directly in management; they purchase units and are entitled to receive profits from them.
The AMC is licensed to manage assets, makes investment decisions, and maintains asset records. The depository, as an independent financial institution, safeguards the fund’s assets and ensures their security. The administrator maintains the register of unit holders and oversees the issuance and redemption of units. An independent audit of the fund’s financial statements is conducted by an auditing firm. The National Commission on Securities and Stock Market regulates and supervises the activities of both the MIF and the AMC.
Characteristics and Features of a MIF
A mutual investment fund is managed by the AMC in accordance with an investment declaration, while the assets belong to the investors. The number of units held by an investor determines their share in the MIF’s assets.
Based on liquidity, MIFs are divided into three types:
Open-ended – units can be bought or sold on any business day.
Interval – units can only be sold during specific periods.
Closed-ended – redemption occurs only after the fund’s term expires.
The investment strategy allows funds to be allocated to various assets such as stocks, bonds, real estate, venture projects, and mixed assets. The fund itself is not taxed; only investors pay taxes when receiving income.
Advantages and disadvantages of Mutual Investment Funds
A mutual investment fund is a convenient investment tool for those seeking passive income and professional asset management. Investment can start with small amounts, as the entry threshold is lower than that of a CIF (Corporate Investment Fund). Financial experts from the AMC manage investments, so unit holders do not need to analyze the market or make decisions independently. Funds are diversified, which helps mitigate risks. Additionally, PIFs are tax-exempt, and state oversight by the National Commission on Securities and Stock Market ensures transparency and clarity in fund operations.
However, there are some drawbacks. Investors must pay management fees to the AMC, as well as fees for the services of the depository, auditor, and fund administrator. The fund’s performance is highly dependent on the professionalism of the AMC, the economic environment, and financial stability. Investors have no influence over investment decisions. Closed-ended and interval MIFs have limited liquidity.
Investment funds differ in their legal status, ownership structure, management model, taxation scheme, and liquidity, depending on their type. Profits are distributed in the form of dividends, stock sales, or increases in unit value.
To receive expert consultation from a leading financial law specialist regarding all the details and nuances of MIF registration in Ukraine, visit this page.
A D-type visa, or long-term visa, is intended for foreigners and stateless persons, granting them the right to stay in Ukraine for up to 90 days within every 180-day period, with the possibility of obtaining a residence permit. This type of visa is essential for individuals planning to work, study, conduct business, or reunite with family in Ukraine. Below are the main types of D visas:
1. Work Visa (Employment)
This visa is suitable for foreigners who have signed an employment contract with a Ukrainian employer. A work permit issued by the State Employment Service of Ukraine is required for its issuance.
2. Student Visa
Students admitted to Ukrainian educational institutions apply for a D visa to obtain a residence permit. The key documents include an invitation from the university and proof of tuition payment.
3. Family Visa (Family Reunification)
This category is designed for individuals whose family members are Ukrainian citizens or have a residence permit. Supporting documents include marriage certificates, birth certificates of children, or other proof of family ties.
4. Business Visa
Foreigners intending to engage in entrepreneurial activities in Ukraine can apply for a business visa. The basis for issuance is the registration of a company or a representative office of a foreign firm.
5. Religious Activity Visa
Missionaries, clergy, and other individuals involved in religious activities in Ukraine are granted a special D visa. The basis for issuance is an invitation from a registered religious organization.
6. Cultural or Sports Visa
Foreigners participating in cultural, scientific, or sports events receive a D visa issued on the basis of an invitation from the Ukrainian side.
7. Volunteer Visa
Foreigners participating in volunteer programs in Ukraine can obtain a D visa. The basis is an agreement with a Ukrainian organization registered as a volunteer entity.
8. Scientific or Research Visa
This type of visa is available for scientists and researchers cooperating with Ukrainian institutions. Confirmation of cooperation and an invitation from the host institution are required.
Official Classification of D Visas:
D-01 – for immigration purposes;
D-02 – family reunification with a person recognized as a refugee in Ukraine, a person requiring additional protection, or someone granted temporary protection in Ukraine;
D-03 – diplomatic/service visa (for accreditation with the Ministry of Foreign Affairs);
D-04 – employment;
D-05 – international technical assistance;
D-06 – religious activities;
D-07 – participation in the activities of branches, departments, representative offices, and other structural units of foreign non-governmental organizations;
D-08 – employment in a representative office of a foreign business entity in Ukraine;
D-09 – employment in a representative office of a foreign bank;
D-10 – cultural, educational, scientific, sports, or volunteer activities. This type requires an invitation from a Ukrainian state authority or an invitation from an organization registered with the National Social Service of Ukraine (NSSU) that engages in such activities;
D-11 – employment as a correspondent or representative of foreign mass media;
D-12 – founder or participant (beneficial owner) of a legal entity;
D-13 – for study purposes;
D-14 – family reunification with a Ukrainian citizen (based on marriage);
D-15 – family reunification with individuals holding a residence permit in Ukraine;
D-16 – other purposes under international agreements of Ukraine.
Features of the D Visa Application Process
Mandatory documents: confirmation of purpose of stay, an invitation from the Ukrainian side, and financial guarantees.
Submission location: visa applications are submitted to Ukrainian consulates abroad.
Extension possibility: after entering the country, D visa holders can apply for a residence permit to ensure legal long-term stay.
The D visa serves as a gateway to long-term residence in Ukraine. Given the variety of categories, each foreign citizen can choose the most suitable visa for their intended purpose.
As reported by Forbes, citing CNN, these cards will grant their holders the right to live and work in the U.S. and significantly simplify the path to citizenship.
“We have green cards, but this will be an even better option – the ‘golden card.’ It will cost around $5 million and provide all the benefits of a green card as well as an easier route to citizenship. Wealthy people from all over the world will come and take advantage of this opportunity,” Trump stated.
According to him, the program will launch in about two weeks, and he expects it to be highly popular. When asked about the possibility of Russian oligarchs purchasing such cards, Trump replied, “Quite possible. I know some Russian businessmen – they are wonderful people.”
U.S. Secretary of Commerce Howard Lutnick added that the new initiative could serve as an alternative to the existing EB-5 program. The latter allows obtaining a green card through investment in the U.S. economy and job creation.
The EB-5 program was introduced by the U.S. Congress in 1990 to stimulate economic growth by attracting foreign capital. Investors and their families can obtain permanent resident status in the U.S. if they invest at least $1,050,000 or $800,000 in economically distressed regions. Moreover, these investments must create or preserve at least 10 jobs for U.S. citizens, and the source of funds must be legally verified. The application may include a spouse and children under 21.
However, the EB-5 program has repeatedly faced fraudulent schemes. For instance, investors were encouraged to invest in non-existent projects, or intermediaries (lawyers, agents) charged excessive fees for “assistance” in processing documents. Some even misappropriated part of the investment funds, leaving clients empty-handed.
Thus, the “golden card” initiated by Trump could become a new tool for attracting wealthy foreigners, although its effectiveness and transparency remain to be assessed.
In particular, state budget revenues from the sale of special permits through 12 auctions on the Prozorro.Sales platform amounted to UAH 1.7 billion. A total of 148 lots were offered, of which 106 were successfully sold.
Additionally, 378 special permits were issued without auctions (including under small-scale subsoil use). Furthermore, 59 subsoil users exercised their right to freely transfer subsoil use rights.
Meanwhile, the European Business Association has called on the Cabinet of Ministers to declassify data on Ukraine’s mineral reserves. In its statement, the EBA emphasized that a significant portion of information on deposits of strategic resources, including diamonds, gold, lithium, titanium, and platinum, is restricted and classified as “secret” or “for official use only.”
This initiative has gained relevance in light of U.S. attempts to gain control over 50% of Ukraine’s resources.
Joint stock companies (JSCs) play a vital role in the economic framework of Ukraine, serving as important vehicles for both private and public investment. The establishment and operation of joint-stock companies in Ukraine are governed by a detailed legal framework designed to facilitate efficient corporate governance, protect shareholders, and ensure transparency in business dealings. This article provides an in-depth overview of the essential aspects of joint-stock companies in Ukraine, covering topics such as the types of JSCs, the procedure for establishing a joint-stock company, authorized capital requirements, management structure, and regulatory compliance.
Types of Joint Stock Companies in Ukraine
A joint-stock company in Ukraine can take two main forms: a public joint-stock company (PJSC) and a private joint-stock company (PJSC). The distinction between these two forms lies primarily in the manner in which shares are traded and the level of regulatory oversight they are subjected to.
A public joint-stock company (PJSC) is a JSC whose shares can be freely traded on the stock market. In Ukraine, this type of company is regulated more strictly due to its potential for raising capital from a large number of investors. A public joint-stock company can be created exclusively by changing the type of JSC from private to public or by converting from another business company.
In contrast, a private joint-stock company (PJSC) has restrictions on the number of shareholders, and its shares are not offered to the general public. These companies are typically family-owned businesses or enterprises seeking a smaller shareholder base while retaining corporate form advantages.
Authorized Capital and Requirements for Establishment
The authorized capital of a joint-stock company is an essential factor in its formation and financial stability. The authorized capital represents the initial investment that shareholders make to form the company. According to Ukrainian legislation, the size of the authorized capital of a joint-stock company is 200 times the minimum wage as determined at the time of the company’s registration.
The procedure for establishing a joint-stock company in Ukraine involves several stages, starting from preparing foundational documents to the registration of the entity. This process includes steps such as conducting constituent meetings, approving the charter, and issuing shares. The founders must also conclude an agreement with the Central Securities Depository to handle the safekeeping and record-keeping of issued securities.
An essential step in forming a joint-stock company is the issuance of securities. Securities are issued to raise capital, and this process is subject to strict regulation to ensure compliance with market standards. The issuance process includes preparing and submitting relevant documentation to the National Securities and Stock Market Commission of Ukraine for approval.
The registration of a joint-stock company is the final step in its formation. The company must be registered with the State Registrar, and all relevant information must be submitted, including details about the management structure, authorized capital, and shareholders.
Corporate Governance and Management Structure
The management structure of a joint-stock company in Ukraine can be either one-level or two-level, depending on the needs of the business and the preferences of shareholders. In a two-level management structure, there is a Supervisory Board and an Executive Board, where the Supervisory Board oversees the activities of the Executive Board. In a one-level structure, a single governing body, typically a Board of Directors, manages both strategic and operational matters.
One of the essential elements of good corporate governance in a joint-stock company is the position of corporate secretary. The corporate secretary plays a key role in ensuring that the company complies with corporate governance standards, organizes shareholder meetings, and maintains communication between shareholders and the board.
The management of a joint-stock company may also include creating an audit commission or performing the position of auditor. This ensures that financial activities are reviewed regularly to maintain accuracy and transparency in financial reporting.
Shareholder Rights and Electronic Meetings
The rights of shareholders are a fundamental component of joint-stock company governance. Ukrainian law provides for the possibility of holding general meetings of shareholders by means of electronic voting and surveys (remote general meetings). This mechanism has become increasingly important in recent years, especially considering the need for flexibility in the face of global challenges such as the COVID-19 pandemic. These meetings are conducted through an authorized electronic system that ensures the authenticity and security of votes and decisions made.
The ability to hold remote general meetings is a significant step towards increasing shareholder engagement, especially for public joint-stock companies with a large number of shareholders spread across different locations. It enhances transparency and allows shareholders to actively participate in decision-making processes without needing to be physically present.
Corporate Contracts and Shareholder Agreements
Another vital aspect of joint-stock companies is the use of corporate contracts. The concept and mechanism of a classic corporate contract provide a legal framework for shareholders to agree on specific terms and conditions regarding the management and operation of the company. These contracts help to outline the rights and obligations of shareholders, establish voting arrangements, and set forth procedures for the transfer of shares.
Corporate contracts are instrumental in preventing conflicts and ensuring that all shareholders understand their roles and responsibilities clearly. They also provide a mechanism for resolving disputes, thereby contributing to the smooth functioning of the company.
Issuance and Management of Securities
Securities are financial instruments issued by joint-stock companies to raise capital. The types of securities that a JSC can issue include shares, bonds, and other forms of financial instruments. These securities represent ownership in the company or a creditor relationship, depending on the type of instrument issued. The concluding an agreement with the Central Securities Depository is a crucial part of the securities issuance process, as it ensures the safekeeping of securities and allows for transparent record-keeping.
For public joint-stock companies, the issuance and trading of securities are subject to strict regulations to protect investors and maintain market integrity. These regulations include disclosure requirements, financial reporting, and the need for the securities to be listed on a recognized stock exchange.
Conclusion
In conclusion, joint-stock companies are a vital part of the Ukrainian corporate landscape, providing flexibility and opportunities for both private and public investment. Whether established as a public joint-stock company (PJSC) or a private joint-stock company (PJSC), these entities must comply with specific regulatory requirements, including the formation of authorized capital, the procedure for establishing a joint-stock company, and compliance with the rules governing issuance of securities.
The management structure of a joint-stock company can be not only two-level, but also one-level, providing flexibility in governance based on the company’s size and shareholder needs. Additionally, advances in technology have facilitated the possibility of holding general meetings of shareholders by means of electronic voting and surveys (remote general meetings), ensuring broader participation of shareholders regardless of their location.
Joint-stock companies must also pay careful attention to corporate governance, including the appointment of corporate secretaries and the creating an audit commission or performing the position of auditor. The position of corporate secretary is essential in ensuring the effective functioning of shareholder meetings and communications between the board and shareholders.
The regulatory framework governing JSCs in Ukraine aims to promote transparency, protect investor interests, and ensure efficient corporate management. From establishing authorized capital to concluding an agreement with the Central Securities Depository and understanding the concept and mechanism of a classic corporate contract, joint-stock companies in Ukraine must navigate a complex set of rules and regulations to ensure their success.
With the growth of investment opportunities in Ukraine, joint-stock companies offer an effective vehicle for raising capital and managing large-scale enterprises. By adhering to corporate governance standards, ensuring transparency in the issuance of securities, and respecting shareholder rights, JSCs can continue to thrive and contribute significantly to Ukraine’s economic development.
The National Bank of Ukraine has enforced a limit of UAH 150,000 per month on personal card-to-card (P2P) transfers as of October 1.
This restriction was first mentioned in August, when the National Bank announced it would be a temporary measure lasting for six months, until the end of March 2025.
The limit applies solely to outgoing transfers from a client’s accounts within the same bank to other individuals. However, it does not affect volunteers who meet specific criteria outlined in an NBU resolution, or those whose confirmed monthly income surpasses the cap. Similarly, it excludes transfers between a client’s own accounts at the same bank and transactions conducted by legal entities.
Transfers using IBAN details remain unrestricted by this limit.
According to the NBU, 98% of bank customers typically transfer amounts below the new cap each month, so these changes should not impact the majority of users.
Initially, the NBU proposed a stricter limit of UAH 100,000 along with a cap of 30 transactions per month. However, this was revised, increasing the limit and dropping the restriction on the number of transfers.
The NBU believes this new limit will help curb the misuse of payment systems in illegal activities, especially those involving “drop” accounts, a common mechanism in the shadow economy.
To further combat the issue, the National Bank has devised a five-step strategy against “drops.”
“Drops” are individuals who provide their card account details to third parties for a fee, allowing these accounts to be used as transit points for moving and laundering illegal funds. Due to their ability to mimic regular transactions, it is challenging to gauge the full extent of “drop” account use, though tens of thousands of active and dormant accounts are known to exist.
During this six-month limit period, the NBU aims to develop additional solutions to tackle this issue.
One proposed measure includes a draft law, which, if passed by the Verkhovna Rada, would require banks to disclose payment service user data to law enforcement upon extrajudicial request.
Expanding your business to other countries is a natural and even necessary procedure if you have successfully settled in the domestic market and want to develop further. The legislation of most countries encourages this and, for example, the Ukrainian government guarantees a permanent residence permit or even citizenship to a foreign investor (optional) for a foreign currency injection into the development of national business.
Investment conditions
The amount after which a foreign citizen will be granted a permanent residence permit in Ukraine is $100,000. The advantage of this position is that such a sector of the economy can be your enterprise, which is registered in Ukraine.
The investment will be considered as a basis for obtaining a permanent residence permit only after it is registered by the Council of Ministers of the Autonomous Republic of Crimea, regional, Kiev and Sevastopol city state administrations (hereinafter referred to as state registration authorities) within three working days after their actual contribution. and will pass the remaining stages of registration in accordance with the legislation on this issue. This is a very complex and lengthy procedure, which is almost impossible for a foreigner to carry out. Therefore, it is logical to immediately enlist the support of lawyers who will not only register the investment, but also subsequently obtain a permanent residence permit in Ukraine on its basis.
Algorithm for obtaining a permanent residence permit in Ukraine for a businessman
The procedure for obtaining a permanent residence permit or citizenship on the basis of investing money in the economy is a multi-layered procedure in itself, since it implies:
Direct transfer of money;
Registration of the investment;
Preparation and receipt of a permanent residence permit (or citizenship).
This condition is used to obtain a permanent residence permit not as often as family ties or professional activity, but it is very effective. Only specialists in the field of migration law can carry out the procedure from start to finish with the least risks and as quickly as possible.
Thus, the lawyers of the Zigma Law Firm have practical experience in solving such issues, so they will help you get a permanent residence permit in Ukraine without the need for the client’s intervention. In this case, the package of documents from the customer may be limited exclusively to documents identifying the person, as well as some papers from the bank, which lawyers will be able to extract if for some reason the client does not have them.
In addition, if necessary, lawyers of the Zigma company will provide legal support for the business, as well as a range of services in the field of corporate law for the new resident.
