The NBU upgrades rules for foreign investments

The NBU upgrades rules for foreign investments

The National Bank of Ukraine continues to reform the inland fiscal regulation following the Concept published at the end of last year. The latest portion of changes was concerned with the procedure for legal entities to invest abroad.

Companies were given a possibility to invest an equivalent of up to USD 2 mln in one year under the same license. Up until recently the limit for such operations was set at an equivalent of USD 50,000 a month.

At the same time, the NBU set a range of requirements for obtaining the license depending on the size of the invested amount:

  1. When the amount of the intended foreign investment is less than USD 50,000, the simplified requirements for the documents necessary to obtain a license apply. Apart from the standard request for a license, it would be sufficient to provide a few additional documents depending on the type of investment (an investment implementation contract, papers for the registration of an investment object, such as real estate, etc).
  2. When the amount of a foreign investment is over an equivalent of USD 50,000, a more elaborate list of documents would be necessary, namely:
  • the documents explaining viability sense of the investment transaction,
  • the documents providing transparency for the sources of the implemented investment,
  • the documents confirming information on the ultimate beneficiaries of the operation.

The NBU management is certain that this type of approach should improve conditions for any foreign economic activity for the Ukrainian enterprises while reducing abuse of the licenses for an illegal capital drain out of Ukraine.

The described rules were approved and came into force on June 12, 2017


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