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Risks and benefits of starting a business in Ukraine

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Risks and benefits of starting a business in Ukraine

Despite the war, business in Ukraine continues to grow, driven not only by Ukrainians but also by foreigners starting businesses. Find out why, despite all the risks, foreigners continue to invest in Ukraine and what attracts entrepreneurs the most

Legal assistance in starting a business in Ukraine
Legal assistance in starting a business in Ukraine
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For almost two years now, Ukrainian business has been operating in a full-scale war. Despite numerous problems, it has not only survived but also started to develop quite actively in 2023. 

Why foreign citizens continue to invest in Ukraine and open their own business here even during the war and what are the main risks of such a decision - we will tell you further in the article.


Registering a company in Ukraine - instructions for foreigners.


What kind of business is best for a foreigner to start in Ukraine?


Ukraine is a country with a huge market and a population of many millions, which is a potentially attractive country for almost any business. Agriculture, alternative energy, information technology, infrastructure, and manufacturing are particularly attractive to foreign investors. Many foreign companies enjoy high profits due to Ukraine's geographical location, low-competitive market, and the ability to quickly improve and adapt their business to different conditions. 


The main advantages of starting a business in Ukraine


▶ Simplified taxation system

▶ Accessible labor market. Doing business in Ukraine is profitable for business owners because the average salary in the country is lower than in European countries.

▶ Low prices for raw materials make processing and production of goods in Ukraine profitable.

▶ Favorable location, as Ukraine is the geographical center of Europe.


However, it should be borne in mind that despite the significant advantages, the war also poses certain risks to foreign investors.




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What are the risks of starting a business in Ukraine now?


Currently, the most common risks of doing business in Ukraine during the war are: 

▶ missile attacks

▶ health and mental state of employees

▶ Decline in economic and consumer activity

▶ interruptions in access to electricity, water and heat supply, and mobile communications;

▶ sometimes there may be problems with transportation and logistics.


How does business adapt to work in wartime?


The vast majority of small and medium-sized businesses in Ukraine are addressing the needs of their customers on their own. Since the beginning of the war, a large number of companies have taken the following measures to maintain their operations

▶ Relocation - hundreds of small and medium-sized enterprises were moved to the central and western regions due to the hostilities in the south and east of the country;

▶ Adaptation of products and services to current needs - companies have re-qualified themselves to provide goods and services that are in high demand right now;

▶ Increase in the volume of goods imported;

▶ obtaining loans on favorable terms, etc.


Business development in Ukraine is taking place despite the full-scale war. After a rapid economic downturn in 2022, a year later, business began to grow - new firms and enterprises were opened, and existing companies returned to stable operations. And new investments, grants, and funding are helping to support the initiatives of the business community.


If you need expert assistance in starting a business in Ukraine, you can contact our professional team of specialists. Our lawyers will help you understand all the intricacies of Ukrainian legislation, take into account all the important nuances and risks, and prepare the necessary documents for starting a business.


Order a consultation or full legal support by following the link. Our specialists will provide a comprehensive solution to your problem!


We would like to remind you that foreign nationals need to take into account many details when starting a business in Ukraine. Read more about the peculiarities of registering a foreign company in Ukraine in our previous article.


Want to know more? Read the latest news and useful materials about Ukraine and the world in the News section.






Ihor Usyk is the Head of Legal Department at Visit Ukraine


If you want to start your own business in Ukraine, you can get advice from my colleagues.
Professionals in the field of business law will help with all the nuances and problems.




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