Article 1.
Definition of Terms Used in the Law
The terms used in this Law have the following meanings:
-
foreign investors - entities that carry out investment activity on the territory of Ukraine, namely:
legal entities, established under legislation other than the legislation of Ukraine;
foreign natural persons who have no permanent residence on the territory of Ukraine and are not limited in their legal capacity;
foreign states, international governmental and non-governmental organizations;
other foreign subjects of investment activity recognized as such by effective legislation of Ukraine.
- Foreign investments - valuables invested by foreign investors in objects of investment activity pursuant to effective legislation of Ukraine for the purpose of gaining profit or achieving social effect;
-
Enterprise with foreign investments - an enterprise (organization) of any legal organizational form, established in compliance with Ukrainian legislation, where foreign investments in its charter fund, if available, constitute no less than 10 percent.
Enterprise acquires the status of an enterprise with foreign investments from the date of entering foreign investment into accounting records;
Article 2.
Types of Foreign Investments
Foreign investments can be contributed in the form of:
Foreign currency recognized as convertible by the National Bank of Ukraine;
the currency of Ukraine if reinvesting in the object of initial investment or in any other objects of investment in accordance with Ukrainian legislation on the condition of payment of tax on profit (incomes);
any personal and real property and property rights related thereto;
stocks, bonds, other securities as well as corporate rights (property right for participation (share) in the charter fund of a legal entity established pursuant to the legislation of Ukraine or legislation of other countries) expressed in convertible currency;
money claims and the rights to claims related to contractual obligations, which are guaranteed by the first-class banks and have value in convertible currency confirmed in accordance with the legislation (procedures) of the investor's country or international trade practices;
any intellectual property rights, value of which in convertible currency is confirmed according to the legislation (procedures) of the investor's country or international trade practices as well as confirmed by expert evaluation in Ukraine, including legalized on the territory of Ukraine copyrights, rights to inventions, utility models, industrial models, product and service trademarks, know-how, etc.;
the rights to carry our business activity including the rights to use or exploit natural resources granted pursuant to laws or under agreements, value of which in convertible currency is confirmed in accordance with the legislation (procedures) of the investor's country or international trade practices;
other valuables according to the legislation of Ukraine.
Article 3.
Forms of Foreign Investing
Foreign investing may be carried out through:
share participation in enterprises established jointly with Ukrainian legal entities and natural persons, or acquisition of shares in existing enterprises;
creation of enterprises wholly belonging to foreign investors, subsidiaries and other separated structural subdivisions of foreign legal entities, or acquisition of entire ownership of existing enterprises;
acquisition, except when expressly prohibited by the legislation of Ukraine, of real or personal property, including buildings, apartments, premises, equipment, transport vehicles and other objects of ownership through direct acquisition of property or property complexes, or in the form of stocks, bonds and other securities;
acquisition of the rights to use land or concessions to exploit natural resources on the territory of Ukraine independently or jointly with Ukrainian legal entities and natural persons;
acquisition of other property rights;
economic (entrepreneurial) activity, that is based on Production Sharing Agreements; (Paragraph 7 of Article 3 added by Law of Ukraine of June 08, 2000)
other forms of investing which are not explicitly prohibited by the legislation of Ukraine, in particular, those based on agreements with business subjects of Ukraine without establishment of legal entities.
Article 4.
Objects of Foreign Investments
Foreign investments may be made in any objects, investments into which are not prohibited by the laws of Ukraine.
Article 5.
Evaluation of Foreign Investments
Foreign investments and investments of Ukrainian partners, including contributions to charter funds of enterprises, shall be evaluated in foreign convertible currency and Ukrainian currency as agreed upon by the parties on the basis of prices of international markets or Ukrainian market.
Investments in foreign currency shall be translated into the currency of Ukraine at the official rate of exchange, set up by the National Bank of Ukraine.
When re-investing profit, income and other earnings received in the currency of Ukraine from making foreign investments, investments shall be translated at the official exchange rate of Ukraine, established by the National Bank of Ukraine at the date of re-investments being actually carried out.
Article 6.
Legislation on Investment Activity of Foreign Investors on the Territory of Ukraine
Relations arising out of foreign investments in Ukraine are regulated by this Law, other legislative acts or international agreements of Ukraine. If an international agreement of Ukraine establishes rules other than those stipulated by the Ukrainian legislation for investment activity, provisions of the international agreement shall prevail.
|
