Temporary residence permit for foreign investors in Ukraine: opportunities and realities

Ukraine attracts increasing foreign investors due to its location, growing market, and favorable business environment. One of the many incentives for investors is obtaining a temporary residence permit (TRP). This document allows foreigners to stay in Ukraine officially and develop their businesses for an extended period. However, there are precise requirements and restrictions for investors that they should be aware of before obtaining a residence permit.

In this article, we will examine how to set up a CCI for foreign investors under current Ukrainian legislation, describe the procedure and critical requirements in detail, and highlight the main restrictions investors face.

Legal framework and requirements for foreign investors

The process of obtaining a CCI for foreign investors in Ukraine is regulated by several legislative acts, including:

• The Law of Ukraine "On the Legal Status of Foreigners and Stateless Persons";
• The Law of Ukraine "On Investment Activity";
• Resolution of the Cabinet of Ministers of Ukraine No. 322 of 25 April 2018.

According to the law, a foreign national is eligible for a TPP if they have invested at least EUR 100,000 (or the equivalent in UAH) in the charter capital of a Ukrainian company. This can be either a newly established or existing company in which an investment has been made.

A residence permit for investors is issued for two years with the possibility of extension. It is important to note that, despite common myths, a temporary residence permit only entitles an investor to official employment with an additional work permit. Even if an investor owns a business in Ukraine, they must obtain a separate work permit to perform official functions at the company.

The procedure for obtaining a CCI for foreign investors

Obtaining a temporary residence permit for foreign investors is relatively straightforward but requires proper execution of each step. Here are the main steps:

1. Preparation of documents. To apply, a foreign investor must provide:
   • passport document;
   • a type D visa (if required for your country of citizenship);
   • documents confirming investment in Ukraine (e.g., an agreement on contribution to the charter capital, bank statements, confirmation of transfer of property, etc. ;)
   • proof of residence in Ukraine (lease agreement or proof of ownership of real estate);
   • a certificate of no criminal record;
   • health insurance that will cover the entire period of stay in Ukraine.
2. It is applying to the State Migration Service of Ukraine. A foreigner submits documents to the migration service at the place of residence. It is essential to carefully prepare all the necessary documents to avoid delays in the case. The state fee for processing the documents is also paid at this stage.
3. Consideration of the application. An application for a residence permit is processed within 15 working days. If all documents are in order, the investor is issued a two-year temporary residence permit. If the residence permit needs to be extended, the investor must re-submit a package of documents and confirm the relevance of their investment.
4. They are obtaining a residence permit. Upon approval of the application, the investor receives a residence permit that entitles them to permanent residence in Ukraine for the duration of the document. However, as noted earlier, the investor must obtain an additional work permit to perform labor duties at the enterprise officially.

Important aspects for investors

Restrictions on employment

Suppose you are a foreign investor who wishes to own a business in Ukraine and work in your company. In that case, knowing that a temporary residence permit based on investment does not automatically grant you the right to work is essential. Foreigners who want to perform any labor duties officially must obtain a separate work permit for a foreigner. Such a permit is required regardless of whether you are the founder or director of the company.

The work permit is issued through the Employment Centres of Ukraine. To obtain it, the company must prove the need to employ a foreigner for a particular position. The permit is usually issued for up to three years and can be extended if necessary.

Residence permit extension

If an investor plans to extend its stay in Ukraine after the expiry of the CCI, the extension process involves submitting a new set of documents. The critical condition for extension is confirmation of the safety of investments or continuation of investment activities in Ukraine. To do this, it is necessary to provide updated financial statements or other documents confirming the company's activity.

The right to permanent residence

Two years after the expiry of the residence permit, the investor has the opportunity to extend it for the same period. However, after several extensions of the CCI, the investor may apply for a permanent residence permit in Ukraine. This is subject to significant investments and active economic activity in the country.

Advantages of a temporary residence permit for investors

Obtaining a temporary residence permit opens up several significant opportunities for foreign investors:

1. Long-term stay in Ukraine. With the CCI, an investor can freely stay in the country for two years without restrictions on the number of entries and exits.
2. Simplified access to banking services. With a CCI, an investor can open accounts with Ukrainian banks, which facilitates financial transactions for doing business.
3. Purchase of real estate. Foreign investors with CCI membership can purchase residential and commercial real estate in Ukraine to expand their business or meet their personal needs.
4. Easier business operations. Foreign investors with a residence permit can actively participate in developing their business while staying in Ukraine legally. This allows for direct control and management of the company.

Conclusion.

Obtaining a temporary residence permit for foreign investors in Ukraine is the key to long-term business development and ensuring a legal stay there. The residence permit procedure is relatively simple, provided all legal requirements are met, and documents are correctly prepared. However, it is worth remembering that to work for the company officially, the investor needs to obtain an additional work permit.

As leading experts in migration law, we at STATUS KO will help you obtain a temporary residence permit and provide full legal support at every stage of your investment in Ukraine.