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.
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.
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.
Cyprus is a popular destination for entrepreneurs looking to open a company due to its favorable business environment, tax benefits, and strategic location within the European Union. This guide outlines the detailed steps for company registration in Cyprus, including necessary documentation, cost considerations, and procedures. By following these steps, you can efficiently register an offshore company in Cyprus, whether you plan to do it locally or remotely.
Step 1: Choose the Type of Business Structure
The first step in the process is to decide on the business structure you want to establish. Cyprus offers several options, including:
Private Limited Company (Ltd) – Ideal for small to medium-sized businesses.
Public Limited Company (PLC) – Suitable for larger corporations that may want to list on the stock exchange.
Offshore Company – A popular choice for businesses looking to take advantage of Cyprus’s low corporate tax rates.
Individual Entrepreneur (Sole Proprietorship) – For those who want to open an individual entrepreneur in Cyprus with minimal formalities.
Step 2: Get Professional Advice and Support
Navigating the process of company registration in Cyprus can be complex, so it’s advisable to seek professional advice. You can get professional advice on registering companies in Cyprus on this page. Experts can guide you through the legal, financial, and regulatory aspects, ensuring compliance with local laws.
Step 3: Choose and Reserve a Company Name
The next step is to select a unique name for your company. The name must comply with Cyprus’s naming regulations and should not be similar to any existing company. Submit your chosen name to the Cyprus Company Registrar for approval. This process usually takes a few days. Once approved, you can reserve the name for your company registration in Cyprus.
Step 4: Prepare the Necessary Documentation
To open a company in Cyprus, you’ll need to gather the required documents, which typically include:
Memorandum and Articles of Association – Outlining the company’s objectives and internal regulations.
Director and Shareholder Information – Details of the company’s directors and shareholders, including passport copies and proof of address.
Company Secretary – Every company must appoint a secretary, who can be an individual or a corporate entity.
Registered Office Address – A local address in Cyprus, which will be the official address for all communications.
Step 5: Submit the Application to the Company Registrar
With your documents prepared, submit the application to the Cyprus Company Registrar for approval. The application should include the company’s name, business structure, and the prepared documentation. This step is crucial in the business registration process. Once approved, your company will receive a certificate of incorporation.
Step 6: Open a Bank Account
After registering your company, you’ll need to open a corporate bank account in Cyprus. Most banks in Cyprus allow for the opening of a company bank account remotely, but they may require certain documents, including the company’s registration certificate, Memorandum and Articles of Association, and identification documents of the directors and shareholders.
Step 7: Register for Tax and VAT
Your newly registered company in Cyprus must be registered with the Cyprus Tax Department to receive a Tax Identification Number (TIN). If your business is expected to have an annual turnover exceeding the VAT registration threshold, you’ll also need to register for VAT. Offshore registration in Cyprus often comes with favorable tax rates, making it an attractive option for many businesses.
Step 8: Obtain Necessary Licenses and Permits
Depending on your business activity, you may need to apply for specific licenses or permits. For example, if you are opening a company in Cyprus in the financial services or import/export sector, you may need additional regulatory approvals.
Step 9: Understand the Costs Involved
The cost of opening a company in Cyprus varies based on factors such as the type of business structure, administrative fees, and professional service charges. Registering an offshore company in Cyprus might include costs for name approval, legal services, document preparation, and annual fees for maintaining the company.
Step 10: Operate and Maintain Compliance
After the registration of companies in Cyprus, ensure ongoing compliance with local laws, including submitting annual financial statements, paying taxes, and renewing any necessary licenses. Staying compliant helps maintain your company’s good standing in Cyprus.
Following these steps will guide you through the process of remotely opening a company in Cyprus, whether it’s an offshore entity or an individual entrepreneur registration.
And if you need advice, the financial lawyers of the Zigma company will provide professional assistance.
The UAE is making significant strides in attracting more qualified foreign specialists, further enhancing its position as a global hub for business and investment. In recent years, the nation has established itself as a destination of choice for professionals across various fields, with a focus on simplifying processes and improving accessibility. As part of its continued efforts to streamline employment and visa procedures, the UAE government has introduced an innovative platform that aims to revolutionize how foreign professionals engage with the country’s job market.
One of the latest initiatives, the Work Bundle platform, is designed to bring together private individuals, investors, and companies on a single digital platform. This integrated system will not only simplify the employment process but also facilitate the necessary steps to obtain work visas. By drastically reducing the administrative burden, the UAE hopes to attract even more talent from Europe and beyond.
Simplifying the Employment Process
The new platform aims to reduce the number of required steps for foreign specialists seeking employment in the UAE. Instead of the traditional 15 steps, professionals will only need to complete 5 steps using 5 documents, as opposed to 16. This simplification will extend to reducing the number of visits to service centers from seven to two, resulting in a significantly shorter processing time—from a full month to just five working days. Such improvements reflect the UAE’s proactive approach to becoming a more business-friendly environment, especially for foreign professionals.
With this streamlined process, the UAE is well-positioned to attract a wide range of experts, including those interested in offshore opportunities. UAE offshore zones have long been appealing to foreign investors and companies due to their tax advantages, ease of business setup, and global reach. By enhancing the employment and visa processes, the UAE is paving the way for further foreign investments, particularly in its robust offshore sectors.
Offshore Opportunities in the UAE
For European professionals and investors, the UAE’s offshore zones offer a unique opportunity to establish businesses with minimal regulatory hurdles. Offshore zones such as Jebel Ali Free Zone (JAFZA) provide favorable conditions for starting and expanding businesses, enabling companies to operate globally while benefiting from the UAE’s attractive tax policies and business environment.
In addition to providing a haven for offshore businesses, the UAE continues to expand its influence as a global financial center, attracting entrepreneurs and investors from Europe, Asia, and other regions. The offshore zones are a key part of the UAE’s strategy to position itself as a leader in international business and finance. With simplified procedures and the launch of platforms like Work Bundle, professionals from diverse industries can now tap into the UAE’s growing business ecosystem.
Conclusion
The UAE’s continuous drive to attract qualified foreign specialists underscores its commitment to creating a dynamic and business-friendly environment. The introduction of platforms like Work Bundle, combined with simplified employment and visa processes, reflects the UAE’s ambition to become a global destination for top talent. For professionals and investors alike, the opportunities in UAE offshore zones are vast, offering a range of benefits for those looking to establish a global presence.
If you’re interested in taking advantage of these opportunities, you can learn more about company registration in the UAE on this page.
With its strategic location, favorable business policies, and streamlined procedures, the UAE is setting new standards for attracting global talent and business leaders.
