Who and under what conditions can invest in agricultural land in...?

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...Ukraine?

31.05.2023 21:55 846

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Photo of lorina200215 Lorina Fedan

Foreign citizens and legal entities, making investments, can be subjects of land relations, acquiring and exercising rights to land plots. Acquisition and implementation of land rights by non-residents takes place in Ukraine with certain restrictions. Since foreign investments as a type of activity aimed at obtaining profit are almost always implemented by business through non-resident companies.

To implement an investment project related to agricultural land in Ukraine, an investor can choose several structures of business organization. The most effective way of organizing activities in Ukraine for projects where there is no need to attract equity capital is to create a limited liability company. This organizational and legal form is the most convenient and least expensive to create and administer. Investors who intend to raise equity capital can create a joint-stock company of a private or public type.

If the company does not want to create its subsidiary in Ukraine, it can register and put on tax records its permanent representative office, which will actually be equated to a resident. Currently, models of organizing relations between business partners through the creation of a joint holding company in a foreign jurisdiction, which later establishes a company in Ukraine, are used effectively and justifiably. At the same time, the partners' management of their business in Ukraine is carried out precisely through a non-resident company using "shareholder agreements", that is, agreements on joint business management.

01.06.2023 09:46

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