Starting a business in Kiev

[Warren]

Hi:  What are the Ukraine Government requirements for starting a new business in Kiev ?
   Warren

[Muzh]

That you are willing to give money, for no reason, and get nothing in return. IF you should make a profit you'll be visited by the tax police with trump-up charges, take your business (while beating the living crap out of you), and then deport you. This is the best case scenario.

[Shadow]

That you follow the Ukrainian business customs. This means involving a Ukrainian partner who is capable to handle things like secondary money streams, getting the right protection, and avoiding the business to be seen as "mark".

[ECOCKS]

About $450-800 on up will get a lawyer to draw up your paperwork, obtain your stamp and get you going. You need to make decisions on the registered owner, the businesses you wish to dabble in, select your tax structure and estimate your annual gross. That gets you a "charter" and then you can settle down to raking in the dough.

[dbneeley]

The Ukrainian custom of having a "partner" who is well enough connected to shelter you from most harm is called having a "krisha" or "roof." So long as this person is high enough in the pecking order, all may be fine--assuming that you don't become targeted by someone higher.

I have hard of many instances of Westerners who have been completely fleeced there--especially when they are relatively small business people. The ones I have heard of that have mostly been successful are ones who have bought apartments and rebuilt them either for sale or for rental. That seems to be below the radar of most of the "Russian mafia" types who aren't always thrilled about a Westerner competing in businesses they actually have an interest in. Although I've heard of a dozen or so who have lost their investment in various kinds of business, I have heard of a half dozen or so who have been successful in the real estate flipping game.

The more capital involved with any business, of course, the larger target it becomes.

Good luck--I hope you are an exception and have success.

David

[ace131]

the comments above are true.
it depends what kind of business you are going to run here and if it something serious you will need to find some "local" partner for helping you. or else it will be pretty tough to run it here
Vasyl

[Billgreen54]

Find someone you can trust.  Have them help you with your documents.  Opening a corporation is not difficult if you fine the right lawyer.  You will need to have a partner at some level.  It is important to make the right friends.  With the right friends, should you run into any kind of trouble, usually a phone call will take care of it.
You need to know that most businesses that open in Ukraine fail.  Especially when started by a foreigner.  Most foreigners have no idea what they are getting into.
In the last three years, I have known many men who came to Ukraine to open a business.  They all failed and lost their entire investment.
Import-export for most small companies fail due to a lack of education and the inability to get around the obstacles.

[ECOCKS]

Foreign guys (and gals, I guess) there start businesses and make money or fail. Not much different than everywhere else really.

I know guys that make a living with their own operations. Some do so legitimately, others run "black" or under the radar.

Certainly, someone thinking of starting a business in another country should be aware of the laws, business practices and the situation they will face with regard to dealing with things like work ethics, language, market factors and so on.

It really all depends on your skills, ability to understand the environment and mastery of business operations. Not too much different than success or failure in our own countries really. I know guys who are doing far better than they ever did in their home countries, others who are miserable failures and barely live above subsistence levels. Take your best shot and cut out what you can handle.

[Rubicon]

Foreign guys (and gals, I guess) there start businesses and make money or fail. Not much different than everywhere else really.

I know guys that make a living with their own operations. Some do so legitimately, others run "black" or under the radar.

Certainly, someone thinking of starting a business in another country should be aware of the laws, business practices and the situation they will face with regard to dealing with things like work ethics, language, market factors and so on.

It really all depends on your skills, ability to understand the environment and mastery of business operations. Not too much different than success or failure in our own countries really. I know guys who are doing far better than they ever did in their home countries, others who are miserable failures and barely live above subsistence levels. Take your best shot and cut out what you can handle.

I think I read before that you had a business in Ukraine.  How long were you in business for there, and did you have a Ukrainian "roof" business partner??

[ECOCKS]

I did the paperwork and taxes for a fully legal language school and bookstore operation. Paid all my taxes for two years and shut it down completely when we moved back to the US.

My operation was small enough that there was little worry that it would attract the notice of anyone wanting to rip me off. A couple of companies short-changed me a time or two but it all worked out eventually.

A buddy who flew higher on the radar did have a partner who was a former political appointee and member of the Rada to keep him out of trouble. The guy traveled frequently around Europe so seemed to have at least some ability to keep the rain off the expat I knew.

The General Manager of The Golden Gate in Kyiv, a Brit named Robin, has partners and can probably give you some colorful accounts of a foreigner doing high-profile business in Ukraine. He's been there for nearly a decade and is pretty plugged in with the expat business community. Several stories can be read about expat businessmen and their partners in Ukraine which enlarges the picture a bit if you read  between the lines.

The entertainment business strikes me as particularly prone to this activity since they are so easy to use as money-laundering operations. There are several expats who have regular jobs and branch out as their network grows to the point that they feel protected from threats and political pressure.

[tommyk]

I'm actually in the process of starting a business in Kiev. I have a local partner, and currently looking for a suitable location

[Stirlitz]

Good luck! You will need it...

[CDW]

I wouldn't do business in any untrustable countries!

[calmissile]

Good advice from the experienced that posted above.

One of the things not mentioned directly is that you must have a good business mind in the first place.  If you can't pull it off at home, you are not likely to pull it off in a foreign country either.  As I recall, many years ago the SBA quoted statistics that only 1 out of 100 start up businesses succeed to live past 10 years in the US.

Many of the failures listed in the posts may have been due to the people not having a business mind to start with.  Just something to think about before investing your life savings.

My fiance has owned several successful businesses in Kiev.  They are now dormant because she took time off to raise her child.  She is currently working as an accountant for a large company in Kiev.  From what she told me, all the tax structures have changed recently and the new laws are ambiguous and very difficult to comply with.  The 'tax police' is a real threat, but in her opinion it is not corruption that you need to fear but rather the new laws that are nearly impossible to comply with.  We have a member on the forum that just went through the 'new' process with his wife selling her business.  Her experience was similar to what I was told by my fiance.

If you are going to have a business in Ukraine it is almost mandatory to have a good partner you can trust.  That in itself is not an easy thing to find.  The  business culture in Ukraine is not anything like the US.  Most disputes are not handled by lawyers.   LOL


Edit:  Apparently the SBA show a much more improved statistical analysis in recent times.
"Seven out of 10 new employer firms survive at least 2 years, half at least 5 years, a third at least 10 years, and a quarter stay in business 15 years or more. "

[mies]

Hi:  What are the Ukraine Government requirements for starting a new business in Kiev ?
   Warren

http://zakon1.rada.gov.ua/laws/show/755-15

Articles 4, 8, 24, 25 (you may use google translator to get general idea)