On November 11 2010 President Victor Yanukovych signed the Law on Preparation and Implementation of Investment Projects under the Principle of a One-Stop Solution. The law came into force on January 1 2012. It determines the legal and organisational principles that will govern the commercial relations involved in preparing and implementing an investment project. The 'one-stop principle' refers to the interaction between a single authorised body and an investor in order to prepare and issue a set of documents that entitles the investor to pursue its project. The law will apply to central executive bodies with responsibility for investment activities, as well as authorised bodies and applicant investors.
The central executive body for investment activity is the State Agency for Investment and National Projects. As of December 1 2011 a special division, InvestUkraine, has been providing high-quality services to investors through a one-stop mechanism - effectively implementing the principle one month ahead of time.
The aim of the project is to make it easier for investors to obtain approval documentation. Liaising with a single authorising entity will reduce the period for obtaining documents from two years to between six and nine months.
InvestUkraine applies a practical model for the investment process, which consists of seven steps: application processing, market analysis, investment offers, site visits, deal structuring, project implementation and post-investment support. It provides free assistance by obtaining all necessary approvals for a start-up. In particular, it:
- arranges informational, analytical and legal services;
- organises visits and provides services to assist in the selection of premises for investment; and
- provides support through contacts with local state authorities.
The aim for 2012 is to achieve €2 billion in direct investment through the one-stop solution. The mechanism has already been successfully implemented in the regions of Sumy, Lviv and Cherkassy.
For further information on this topic please contact Maksym Cherkasenko at Arzinger by telephone (+380 44 390 5533), fax (+380 44 390 5540) or email ([email protected]).