We continue the topic of opportunities of foreign investment by a resident of Ukraine (an individual), and, perhaps, a little more news about the procedure for obtaining a license of the National Bank of Ukraine.

Welcome, dear readers!

In the first part of this topic (a link to the article -), we briefly reviewed the procedure for obtaining a license, and also discussed the responsibility if there is no such license. Now let’s talk about the documents. Documents is the most important thing. The package of documents submitted for obtaining a license is quite impressive:

1) An application where it is indicated:

  • The amount and type of currency assets invested (since the hryvnia is strictly prohibited from being used abroad, any other currency values are allowed), the settlement date (!)
  • Form – cash / non-cash
  • If in a non-cash form – the name and country of the financial institution and the details of the applicant’s account, from which the currency will be transferred
  • Name and country of the financial institution, details of the account (+ its owner), to which the invested funds will be transferred
  • The purpose of investment
  • An object of investment;

2)  When buying corporate rights of the company (direct investment) you need to have originals or notarized copies of the registration of a non-resident, whose chapter capital is invested, as well as originals or notarized copies of documents on registration of the share of the charter capital (an object of investment) which the applicant resident plans to purchase (for example, a certificate of shares);

 

3)   When doing other types of investments there should be originals or notarized copies of documents that confirm the ownership of the non-resident seller on the object of investment;

 

4)   Copies of passport pages certified by the applicant’s signature;

 

5)  If the investment is more than 10 000 euros in favor of one person, a copy of the asset and income disclosure for the last reporting year with a notation of the tax authority is also submitted. If the amount of income in such a declaration is less than the amount invested you should have copies of declarations of previous reporting periods (years) to confirm your income, until the amount of the investment is “collected”;

 

6)  The original or a copy (certified by a notary or subject of evaluation) of an act of valuation of the market value of the investment object (if the object is not financial credit instruments and corporate rights within their nominal value). The time between the dates of the valuation report and the contract under which the investment is made should not exceed 30 calendar days.

And, of course, the NBU can require any other documents additionally.

The period for consideration of the application and documents is 25 working days. When requesting additional documents, the period is suspended and resumed after the submission of such documents.

 

If the legislation of the country of investment provides a different procedure for registering the object of investment, for example, money first – then registration (which, by the way, must be confirmed by the relevant norm of law), the documents listed in paragraphs 2 and 3 may not be submitted. The NBU will indicate the procedure for filing documents confirming the registration of the investment object in the issued license later.

An important detail: all documents must be submitted only in paper form and in any other case they are not subject to review. You may be given 5 days for proper filing but only in an exceptional case.

Documents written in a foreign language (except Russian) must be translated into Ukrainian, and such translation must be notarized. If the document already has a side-by-side translation into Ukrainian – it is not necessary to submit it separately in Ukrainian language.

It is inadmissible to accept documents which have any corrections, deletions, additions, etc. (and it is logical, because these are the documents after all!).

Of course, everything is not free – you will have to pay 3560 UAH to the NBU, and only then you will get your license. The second copy of the license is kept in the NBU, and a copy is also sent to the tax authority where you are registered (yes, Big Brother continues to watch you).

When doing a non-cash transaction of funds for an investment, you should bring your license in the bank. The bank makes notes on it with the date and amount of the investment and keeps a copy.

The license is issued for the period that is necessary for the investment. It is logical, because one license is issued for one investment.

 

If it is necessary to make changes to the license – relevant documents which concern changes are submitted.

It’s not all as easy as it sounds, if you want to change the amount of investment: here you need to get a new license and, in accordance, re-submit a package of documents. In this case, all the documents submitted earlier are not taken into account. Changes and additions are made within 20 working days from the date of registration of the submitted documents.

Of course, the issuance of license can be rejected if you are lying (there is false information in documents) or everything is incorrectly drawn up (not under the law), etc.

 

In addition, the NBU can revoke the license if you have violated its conditions or you wanted to withdraw it. This can be done by order of the NBU. In this case, the owner of the license is obliged to stop the investment and return to Ukraine all the funds listed above and the income received from such an investment.

If you are denied a license or a license was withdrawn, such a decision of the NBU (or rather, an order) can be appealed in an administrative court – you can put the law on the NBU. The court can make a decision in your favor and oblige the NBU to issue you a license, such decisions were in a practical matter.

In general, if you have everything done honestly, by law and you are not afraid of transparency, go ahead! – bravely get an individual license and sleep peacefully. And if not – well, you can take a chance. After all, there is no clear procedure for attracting financial responsibility for investing at your own wish, rather than under license, as you probably have read in our previous article, but we cannot but remind you, that the NBU’s actions are just unpredictable!