Trade and economic relations between Ukraine and Slovenia
Trade and economic relations between Ukraine and Slovenia
19 August 2012 18:14
During January-June 2024, the goods turnover between Ukraine and Slovenia amounted to 164.3 million dollars. USA, which is 15.1% more than the volume of trade in goods during the corresponding period last year. Export of Ukrainian goods to Slovenia amounted to 38.8 million US dollars and increased by15.4%, import volumes increased by 11.6% and amounted to 125.5 million USD. The balance for this period is negative for Ukraine and amounts -86.7 million USD.
In the structure of the export of Ukrainian goods to Slovenia prevail: iron and steel - 46%, railway locomotives - 11.9%; wood and wood products - 5.6%; furniture – 5.4%; lead and its products - 4.4%.
The structure of import of Slovenian goods is dominated by supplies of: pharmaceutical products – 41%; electric cars – 8.5%; paper and cardboard - 7.1%; nuclear reactors, boilers, machines - 5.1%; mineral fuels, oil and products of its distillation - 6%.
The data about the volume of trade in services during this period is not available.
Exporters and Investors Council (EIC) under the Ministry of Foreign Affairs of Ukraine was established in 2013 in order to safeguard national interests in Ukrainian export promotion and attraction of foreign investments to Ukraine.
EIC is a platform, which unites Ukrainian producers, exporters and leading business associations providing necessary support in promoting their goods and services abroad and entering new markets, as well as attracting foreign investors and companies to Ukraine effectively using diplomatic tools, resources and networks.
From the beginning of 2022 the new platform was launched to help Ukrainian companies enter the foreign markets - https://nazovni.online and https://nazovni.tech
Ukrainian law allows various business structures, such as joint-stock companies, limited liability companies (LLC), private entrepreneurs, joint ventures, representative offices and others. Some of them are more suitable for larger businesses (such as a joint-stock company), whereas other types are more appropriate for an individual, small or mid-size businesses.
Foreign citizens and legal entities may choose one of the above business structures, taking into consideration the ownership and management structure of the company as well as the type of business they are planning to conduct.
Except for a very small one-person type business (such as freelancing) where a Private Entrepreneur structure may be more suitable, most small to mid-size businesses (local and foreign) prefer to incorporate as an LLC in Ukraine.
An LLC offers liability protection to business owners (i.e., their personal assets are protected from business liabilities) and the flexibility to grow bigger as the business expands, yet at the same time faces less scrutiny and government compliance requirements than other more complex business structures.
The following documents have to be filled by shareholders’ representative for the state registration of LLC company in Ukraine:
Application for registration
Decision of founders on incorporation. Such decision of founders on incorporation of a Company may also contain decision to elect for the simplified taxation system (not possible for LLCs owned by foreign companies for more than 25%)
Company Charter (or decision to use the model charter
Application for voluntary registration as VAT taxpayer (if necessary)
For LLCs owned by legal entities-non-residents, additionally
Extract from Company Registry (other relevant state registry in which registration of legal entity is performed in a country of your residence) or other documents, issued by government authorities, confirming registration of a foreign company, its registered address, directors, shareholders and good-standing.
Document, confirming powers of a representative of shareholders to register a LLC (POA)
Given the fact that all the Ukrainian laws/regulations are available mostly only in Ukrainian language and application form also has to be filed in Ukrainian language, it’s a good idea to hire a competent and qualified corporate service provider what can assist foreign companies and stakeholders in drafting the respective documents and handle company registration procedure under an appropriate power of attorney.
Foreign founders and legal entities that are incorporating a Ukrainian LLC must provide the following documents:
Copies of passports of final beneficiary owners of parent company and the director (if physical persons)
Trade register extract certificate of founding company (with all registration information)
Basic data of founding company (according to electronic application form, that your local consultant will provide)
Written statement of founding company to register Ukrainian affiliate office (your local consultant will provide this too)
Power of Attorney
On the basis of these documents, your local partner will execute the establishment procedure which usually takes 5-10 business days. After your LLC is established, it will need to be registered at the tax authority and pension fund as well. Next, the company bank account needs to be opened, and then you are ready to send in your statutory capital and start doing business in Ukraine.
Decisions are made and power is delegated to the executives of your company based on the company charter. Formulating a charter for the new company is also done by your local partner. A basic charter is usually provided as part of the company establishment package, but you may want to consider adding something of your own. For example, you may want to include limitations on the monetary size of the transactions and deals the director of your Ukrainian company is legally able to make.
CONTRIBUTIONS TO THE STATUTORY CAPITAL
Founders can contribute to the company’s statutory capital both in monetary form and through in-kind contributions such as:
Structures and buildings;
Equipment and other tangible assets;
Securities (except for promissory notes);
Rights of possession to land, water and other natural resources: or
Other property rights (including intellectual property rights)
The use of Budget funds, borrowed funds or pledged property to form statutory capital is prohibited.
Today it is possible to establish a company in Ukraine with minimum share capital, for example one Euro, however we do not recommend it. Your company will have monetary obligations since day one, as it needs to have a director who has to receive at least the minimum wage. If the mandatory social contributions from this wage are late, your company could be flagged and inspected by the tax authority.
Whether you have decided to register a LLC as a foreign individual or a legal entity, all documents (except passport) which you will bring from overseas to Ukraine must be either legalized, or apostatized (if country where the documents were issued is subject to so called Hague Apostille Convention as of 5th of October, 1961).
If documents compiled in other language than Ukrainian, a certified translation has to be provided.