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Author: Aliona Yevtushenko, lawyer at F&P

In 2025, international contracting has become even more challenging due to geopolitical instability, reforms in Ukrainian legislation, and increased regulatory requirements. For Ukrainian companies seeking to enter international markets or attract foreign partners, it is critical to consider new legal risks and adapt their practices to the changes. In this article, we will review key recommendations on how to avoid legal problems when entering into international contracts, based on the latest legislative changes and expert commentary.

1. Consider changes in Ukrainian legislation

In January 2025, the Verkhovna Rada of Ukraine adopted a law abolishing the Commercial Code of Ukraine. This step is aimed at harmonizing Ukrainian legislation with European standards and eliminating overlaps between the Commercial and Civil Codes. From now on, economic relations are regulated mainly through the Civil Code of Ukraine and special laws.

This means that when entering into international contracts, you should carefully check which rules apply to a particular type of contract and take into account the new corporate governance requirements, especially for state-owned and municipal enterprises that are subject to mandatory corporatization.

2. Pay attention to international agreements and conventions

Ukraine is a party to the 2019 Hague Convention on the Recognition and Enforcement of Foreign Judgments in Civil or Commercial Matters, which entered into force in September 2023. This opens up opportunities for Ukrainian companies to enforce judgments abroad, but also imposes obligations to comply with international standards in contracts.

When entering into contracts, it is important to provide for choice of jurisdiction clauses, arbitration clauses and dispute resolution mechanisms that comply with the requirements of the Convention.

3. Avoid political risks and non-transparent conditions

In May 2025, Ukraine and the United States ratified a framework agreement on cooperation in the field of mineral resources. While this agreement opens up new opportunities for investment, experts point to legal gaps and the lack of clear implementation mechanisms, which may create risks for investors.

When entering into international contracts, avoid terms and conditions that can be changed as a result of political pressure or instability, and ensure that there are clear force majeure clauses and mechanisms to protect the interests of the parties.

4. Engage professional legal counsel

Given the complexity of international law and the constant changes in legislation, it is important to engage experienced lawyers who specialize in international law and have experience with specific jurisdictions. This will help to avoid mistakes when entering into contracts, correctly formulate the terms of the agreement and anticipate possible risks.

5. Adhere to the principles of transparency and integrity

International partners are increasingly paying attention to the compliance of contracts with ESG principles (environmental, social and corporate governance). Compliance with these principles not only reduces legal risks, but also enhances the company’s reputation internationally.

Conclusion

Concluding international contracts in 2025 requires Ukrainian companies to have a high level of legal literacy, be attentive to changes in legislation and be ready to adapt to new challenges. Following the above recommendations will help minimize legal risks and ensure the successful implementation of international projects.

Author: Viktoriia Staryk, lawyer at F&P

In today’s Ukrainian business environment, especially after the abolition of the Commercial Code of Ukraine in 2025, a corporate agreement is becoming not only a tool for large corporations, but also a necessity for small and medium-sized enterprises. This document allows to clearly define the rights and obligations of the participants, decision-making and conflict resolution mechanisms, which is especially important in the context of legal uncertainty and economic instability.

 

What is a corporate agreement?

A corporate agreement is a written agreement between the company’s shareholders that sets out the procedure for exercising their rights and obligations within the framework of corporate relations. It may be paid or gratuitous and is concluded to resolve internal issues that are not always detailed in the company’s charter. In particular, a corporate agreement may establish:

• Voting procedure at the general meeting of participants.

• Terms of transfer of shares in the authorized capital.

• Mechanisms for resolving conflict situations.

• Responsibilities for financing the activities of the company.(Higher School of Advocacy of the Ukrainian National Bar Association)

It is important to note that the corporate agreement must not contradict the company’s charter and the current legislation of Ukraine.

 

Legislative changes in 2025: new challenges and opportunities

In 2025, Ukraine underwent significant changes in corporate legislation. In particular, the Commercial Code of Ukraine was abolished, which led to the need for businesses to adapt to the new regulatory environment. Instead, the Law of Ukraine “On Peculiarities of Regulation of Business Activities of Certain Types of Legal Entities and Their Associations in the Transition Period” came into force.( aktiv-alb.com, Verkhovna Rada of Ukraine)

This law provides for amendments to the Civil Code of Ukraine, in particular, regarding the possibility of legal entities to exist in the organizational and legal form of “association of legal entities”. Such changes are aimed at improving corporate governance and increasing the country’s investment attractiveness.( Advisor in the field of public procurement)

 

Why should a company with a minimum number of shareholders enter into a corporate agreement?

The question often arises: is a corporate agreement necessary in companies with only two or three members? The answer is unequivocally yes. Even in such companies, situations may arise that require clear regulation:

• Withdrawal of a shareholder from the company. A corporate agreement may provide for the procedure for redemption of shares and settlements between participants.

• Distribution of profits. The agreement allows for individual terms of profit distribution other than pro rata distribution of shares.

• Strategic decision-making. You can determine which decisions are made unanimously and which are made by a majority vote.

• Protection against unfair practices. The agreement may contain provisions on liability for breach of obligations and dispute resolution mechanisms.

Thus, a corporate agreement is a kind of “insurance” for the company’s shareholders, ensuring predictability and stability in their relationships.

 

Tips for concluding a corporate agreement

1. Involvement of professionals. The drafting of a corporate agreement should be entrusted to experienced lawyers who will take into account all the nuances of the law and the specifics of the company’s activities.

2. Individual approach. There is no universal template for a corporate agreement. Each agreement should take into account the specifics of a particular company and its members.

3. Regular review. Changes in legislation or company structure may require amendments to the corporate agreement. It is recommended that you periodically review the agreement and make any necessary adjustments.

 

Conclusion

The conclusion of a corporate agreement is an important step for any company, regardless of the number of shareholders. This document helps to avoid many potential conflicts, ensures transparency in relationships and contributes to the stable development of the business. In the context of constant changes in legislation and the economic situation, a clear and well-thought-out corporate agreement is the key to the company’s successful operation.

Author: Maryna Pokotylo, Partner at F&P

Disputes with counterparties can arise even in the case of carefully drafted contracts. Late payment, failure to fulfill obligations, delivery of low-quality goods are just some of the problems that occur in business relationships. Timely legal support and the right defense strategy can be the key to winning in court.

1. Pre-trial settlement of a dispute: an opportunity to save resources

Before going to court, it is important to exhaust all possibilities for pre-trial settlement. Ukrainian law does not explicitly require the claim procedure in all cases, but compliance with it often plays a positive role.

Actions to take:

• Submit a claimThe letter should clearly state the essence of the violation, your requirements, the deadline for responding and the legal grounds. Pursuant to Article 179(7) of the Commercial Procedural Code of Ukraine, a copy of the claim may be attached to the statement of claim as evidence of pre-trial activity.

• Document the negotiationsIf you hold telephone or in-person negotiations, confirm them in writing (by letter or email).

• Engage an intermediary or mediatorThis mechanism is effective in disputes where the parties have a long-standing relationship.

Tip: Conclude contracts with mediation clauses – this is an additional tool for resolving conflicts without going to court.

2. Complete preparation of the evidence base: every document counts

In a court dispute, the basis is proper and admissible evidence. It is worth remembering that in commercial proceedings, the burden of proof rests with the party that substantiates certain circumstances (Article 74 of the Commercial Procedural Code of Ukraine).

We are collecting evidence:

• Main contract and annexesCheck whether all pages are signed, whether the signature of an authorized person is included, and whether there is a seal.

• Acts, invoices, delivery notesconfirm the fact of fulfillment or non-fulfillment of obligations.

• Correspondence.including electronic (via email or messengers), which can be attached as printouts with technical headers.

• Financial documents.payment orders, bank statements, reconciliation statements.

• Witnesses.Witnesses: witnesses are rarely used in commercial disputes, but they can be useful in disputes over the transfer of things or the performance of work.

3. Legal structuring of a statement of claim: not only content but also form

A statement of claim is not just a statement of facts. It is a document that the court evaluates formally. Violation of even the technical requirements may result in the statement being left without motion or returned.

Key elements:

• Structurecomplies with the requirements of Article 162 of the Commercial Procedural Code of Ukraine. It must contain data on the parties, the nature of the dispute, justification, evidence, the amount of the claim, claims and attachments.

• Correct jurisdictionIt is important to establish which court to file a lawsuit in. Violation of jurisdiction will slow down the process.

• Court feeCourt fee: paid in accordance with the Law of Ukraine “On Court Fee”. For example, for property claims, it is 1.5% of the price of the claim, but not less than one minimum wage.

Tip: When the price of the claim is high, it is worth filing a motion for installment or deferral of the court fee.

4. 4. Behavior in litigation: strategy, flexibility and procedural discipline

Effective participation in court proceedings requires systematic work:

• Active position.Provide explanations, answer the court’s questions, and respond to the other party’s motions in a timely manner.

• Counterclaim or counterclaims: use the opportunity to make counterclaims (Art. 177 of the CCP).

• Use of security measuresFor example, seizing the defendant’s accounts or prohibiting the alienation of property. This will help avoid situations where there is nothing to recover after the case is won.

• Involvement of expertsIn case of technical or specialized issues (e.g., construction, IT services, audit).

• Submission of procedural documents through the Electronic Court: speeds up communication with the court and guarantees the filing is recorded.

5. Enforcement of the judgment: collection strategies

Getting a decision is only half the battle. Actual implementation is the next step.

• Applying to the executive serviceSubmit the application together with the writ of execution. From the moment the proceedings are initiated, the enforcement officer has the right to take action against the debtor.

• Private performersThey often work faster than the public service. According to the Law of Ukraine “On Enforcement Proceedings”, you can choose a private enforcement officer.

• Application of sanctions for evasionIf the debtor ignores the court decision, criminal proceedings may be initiated under Article 382 of the Criminal Code of Ukraine (failure to comply with a court decision).

• Asset monitoringIdentifying new accounts, movable and immovable property of the debtor in time will help the bailiff to act more effectively.

Conclusion

Success in a legal dispute with a counterparty is not only the result of being right on the merits, but also the consequence of a professionally built strategy: from pre-trial settlement to enforcement of the judgment. In difficult situations, the assistance of experienced lawyers becomes a decisive advantage.

Fedoryshyn & Partners team has many years of experience in commercial disputes. We help businesses protect their interests effectively, legally and strategically.

Contact us – we know how to win your case.

Author: Anastasia Holovatyuk, Lawyer at F&P

In 2024–2025, investing in commercial real estate in Ukraine is becoming increasingly relevant amid gradual economic recovery and significant restructuring of the domestic market. Investors are presented with favorable conditions to acquire business premises at attractive prices. However, they also face a complex legal environment that requires careful due diligence, proper risk allocation, and professional legal support at all stages of the investment process.

Legislative Changes and Legal Guarantees for Investors

One of the most important developments in this area is the adoption of the Law of Ukraine No. 2518-IX “On Guaranteeing Property Rights to Real Estate Objects to Be Constructed in the Future.” The law introduces the concept of special property rights (SPR), allowing investors to:

• register their rights at the early construction stage;

• receive legal protection in case of developer insolvency or default;

• secure future ownership rights via the State Register.

This legal mechanism is particularly important for investments in commercial projects such as shopping malls, office centers, and warehouses, where early-stage funding is critical.

 

Digitization of Real Estate Transactions

Since 2024, Ukraine has introduced a legal framework for the electronic execution of real estate sale and purchase agreements.. Transactions can now be carried out using qualified electronic signatures (QES), with online verification via official registers. Although this significantly reduces time and risks, the participation of a notary remains legally required to certify the validity of the transaction.

The shift to digital agreements improves transparency and reduces the potential for document fraud, particularly in large-scale or multi-party commercial deals.

New Requirements for Developers

Developers are now subject to stricter compliance standards, including:

• mandatory insurance to protect buyers in the event of incomplete construction;

• revised licensing and permitting procedures regulated by the State Inspectorate of Architecture and Urban Planning (DIAM);

• strengthened state oversight for projects involving investor contributions.

These reforms increase legal certainty but also place a higher burden of compliance on all parties involved, making legal support essential during project review and contract negotiation.

Key Legal Risks in Commercial Property Transactions

Title and Encumbrances

Before any transaction, it is critical to verify the legal “cleanliness” of the asset. This includes:

• confirming ownership and rights registration;

• checking for existing encumbrances (mortgages, court orders, easements);

• reviewing technical documentation for compliance with actual conditions.

This is especially important for older properties or those located in dense urban areas.

Zoning, Cultural Heritage, and Location Restrictions

Commercial properties in central districts of Kyiv, Lviv, and Odesa often fall under:

• UNESCO World Heritage protection zones;

• historical preservation areas;

• special urban planning restrictions.

These may limit renovation, usage, or functional repurposing, and should be analyzed before purchasing or investing.

Counterparty Verification

Before signing any deal, it is essential to evaluate the legal standing of the seller or developer. This includes:

• reviewing the company’s registration, beneficiaries, and financial background;

• checking court and enforcement records;

• identifying any sanctions or asset freezes.

This helps prevent transactions with entities facing legal challenges, reputational risks, or operational bans.

Structuring the Investment

Commercial real estate deals are often structured beyond traditional purchase agreements. Common formats include:

• acquisition of corporate rights in a company that owns the property;

• contributions to a company’s share capital;

• option agreements or forward contracts.

Each format has legal and tax implications, and

Promising Real Estate Sectors in 2025

Despite challenges associated with martial law, certain segments of commercial real estate remain attractive:

• Retail real estate in Western Ukraine (Lviv, Uzhhorod, Ivano-Frankivsk) is driven by internal migration and stable consumer demand;

• Logistics centers near Kyiv, Vinnytsia, and Dnipro remain in demand due to changing supply chain needs;

• Hybrid office spaces and coworkings are growing in popularity as companies embrace flexible formats.

Leading market analysts note a rebound in rental rates and investor activity in Q2 and Q3 of 2024, with growing interest from foreign institutional players.

How Fedoryshyn & Partners Supports Investors

Our firm provides full legal support for real estate transactions, including:

• legal due diligence of property and developer;

• structuring of transactions (direct purchase, corporate rights, investment contracts);

• support in negotiations with sellers, developers, banks, and notaries;

• registration of special property rights or ownership titles;

• representation in case of litigation or disputes.

Conclusion

Investing in commercial real estate in Ukraine offers high potential returns, but also involves complex legal and regulatory challenges. Recent legislative reforms and the digital transformation of transactions have significantly improved the investment climate. However, every transaction must be carefully structured, verified, and accompanied by professional legal expertise.

Fedoryshyn & Partners helps clients turn legal complexity into long-term investment success.

Author: Aliona Yevtushenko, lawyer at F&P

Foreign companies entering the Ukrainian market are exposed to a number of tax-related risks that can significantly affect their operations and financial performance. Awareness of these risks and proper tax planning are essential for ensuring business stability and compliance with Ukrainian legislation.

1. Controlled Foreign Companies (CFCs): New Challenges for Investors

Since 2022, Ukraine has enforced regulations regarding Controlled Foreign Companies (CFCs). Ukrainian tax residents who directly or indirectly own shares in foreign entities must report this to tax authorities and submit annual reports on such companies’ activities. Failure to comply with these obligations may result in substantial penalties, amounting to 300 times the subsistence minimum for each violation (tax.gov.ua).

In addition, under Subparagraph 39².6.3 of Paragraph 39².6 of Article 39² of the Tax Code of Ukraine, banks and other supervisory institutions submitted over 9,800 notifications to the State Tax Service, indicating that Ukrainian residents own shares in foreign legal entities.

2. Principal Purpose Test and Thin Capitalization Rules

As part of implementing OECD BEPS initiatives, Ukraine introduced the Principal Purpose Test (PPT). According to this test, tax treaty benefits may be denied if one of the main purposes of a transaction is to obtain such benefits. Furthermore, thin capitalization rules restrict the ability of companies to reduce their taxable income by using excessive debt financing from related parties. These regulations are particularly relevant for multinational groups with complex intra-group financing structures.

3. Increased Scrutiny of Offshore Structures

Ukrainian tax authorities have intensified their oversight of transactions involving offshore entities. This includes audits to verify the proper declaration of foreign income and tax compliance related to undisclosed foreign accounts. Companies with offshore structures are advised to undergo a thorough tax audit and ensure full compliance with Ukrainian legislation. Failure to do so may trigger tax audits, penalties, and reputational risks.

4. Reporting Requirements and Financial Documentation

Entities falling under the CFC rules are required to prepare and file detailed financial reports, undergo audits, and maintain comprehensive transfer pricing documentation. Non-compliance with these reporting obligations can result in financial penalties, restrictions on profit distribution, and potential litigation with tax authorities.

Conclusion

Foreign investors operating in Ukraine should proactively manage their tax risks by closely monitoring legislative changes and ensuring full compliance with both local and international standards. Engaging qualified legal and tax advisors is a critical step in mitigating risks and maintaining a successful and transparent business presence in Ukraine.

For detailed advice, please contact our experts at Fedoryshyn & Partners

Author: Viktoriia Staryk, lawyer at F&P

In 2025, Ukrainian businesses are actively expanding into international markets, and intellectual property (IP) has become a key asset in global competition. Given recent legislative updates and geopolitical challenges, effective IP protection is critically important for the sustainable development of companies.

Key Changes in Ukrainian Legislation

Ukraine continues to harmonize its IP legislation with European standards:

• New Law on Copyright and Related Rights (entered into force on January 1, 2023) improved the regulation of moral and economic rights, introduced effective resale rights provisions, and strengthened administrative and criminal liability for copyright violations.

• Changes in Trademark Registration Procedures (since September 18, 2024) now allow registration of non-traditional marks, such as sound, 3D, multimedia, motion, and holographic signs, aligning Ukrainian laws more closely with European norms.

• Electronic Certificates: Since January 2025, the Ukrainian National Office of Intellectual Property and Innovation (UANIPIO) issues all certificates exclusively in electronic format, streamlining procedures and reducing administrative burdens.

Entering International Markets: What to Consider

Ukrainian companies planning to enter foreign markets should take the following into account:

• International Trademark Registration: Ukraine is a member of the Madrid System, allowing trademarks to be registered in over 120 countries through a single application.

• Copyright Protection: Ukrainian legislation supports international copyright protection, particularly through participation in global treaties and conventions.

• EU Regulation on Geographical Indications (2024): opens the door for Ukrainian producers to register unique artisanal or industrial products—such as “Volyn carving” or “Podilian ceramics”—for European markets.

• PCT (Patent Cooperation Treaty) Procedure: allows for submission of international patent applications covering up to 157 countries, followed by national phase registration.

• Electronic Patents in Ukraine: starting in 2025, all patents and certificates are issued only in electronic form. This accelerates the registration process, ensures easier access to documents, and facilitates use in international digital workflows.

• Preliminary Brand and Technology Search: Before entering a new market, it’s crucial to ensure that your trademark or invention does not infringe on third-party rights—this helps avoid legal disputes and court cases.

• Adaptation to Foreign Legal Norms: Some jurisdictions require contract localization, licensing agreements, or additional IP rights registration—even if already protected in Ukraine.

Challenges and Risks

Despite positive legislative developments, several challenges remain:

• Abuse During Martial Law Temporary suspension of IP deadlines during martial law has led to misuse, particularly in patent law, causing legal uncertainty.

• Weak Protection in Certain Jurisdictions: Some countries lack robust IP enforcement systems, which may lead to infringement of Ukrainian companies’ rights.

• Cyber Threats: There is a growing number of cyberattacks targeting the theft of trade secrets and other IP assets.

 

Contact Us

Don’t delay protecting your intellectual property. Contact Fedoryshyn & Partners today to ensure reliable protection of your rights on the international stage.

 

Your success is our shared mission!

Author: Olena Andriyko, lawyer at F&P

The year 2025 has marked a turning point, with the issue of labor shortages becoming a major challenge for many companies, including those in the legal sector. The legal field is no exception, as law firms, like other businesses, face difficulties in finding highly qualified professionals who meet the high standards of expertise and competence required. How can companies adapt to these conditions? What legal strategies can help businesses not only overcome labor shortages but also operate effectively in a changing labor market?

1. Legal Aspects of Internal Workforce Development

Investing in the development of employees through internal legal practices is becoming essential in the face of labor shortages. Internal training and retraining programs can not only enhance the skills of existing staff but also help identify untapped potential among current employees. Law firms can develop certification programs and internal qualification improvement initiatives, including internships and mentoring, to address staffing needs without relying on the external labor market.

These programs should align with labor legislation, including vacation, compensation, and other guarantees for participants.

2. Digitization of Legal Processes and Automation of Routine Tasks

Law firms facing labor shortages can leverage technology to automate routine tasks, such as drafting standard contracts, document review, and preparing legal opinions. The implementation of legal technologies (LegalTech) can significantly increase operational efficiency, reduce workload for lawyers, and ensure faster execution of operations.

From a legal perspective, this also involves issues related to data protection and compliance with regulations on the use of automated systems, particularly in the context of GDPR (for international companies) or local standards.

3. Flexibility in Employment Relations and the Possibility of Remote Work

From a labor law perspective, enabling law firms to implement flexible work arrangements or remote employment is an important strategy to address labor shortages. According to recent changes in labor legislation, remote work and flexible schedules can be legally formalized through appropriate employment contracts.

For law firms that need to recruit specialists from various regions or even countries, this approach enables access to the required talent pool. At the same time, to ensure employees’ rights and legal guarantees, it is crucial to consider the specifics of drafting employment contracts for remote workers and ensure compliance with tax regulations and safety standards.

4. International Legal Solutions for Attracting Foreign Workers

In a globalized world, overcoming labor shortages can be achieved by attracting foreign workers. However, this requires careful legal support within the framework of immigration and labor law. For many companies operating in the legal sector, it is essential to understand the requirements for obtaining work permits, visa programs, and ensuring foreign employees’ rights in accordance with international standards.

A law firm looking to expand its workforce must also take into account changes in labor migration legislation, including easing procedures for highly skilled professionals.

5. Employee Rights Protection and Corporate Culture

In the legal market, corporate culture and working conditions are especially important, as they directly affect a company’s ability to attract and retain talented employees. Comprehensive legal support to create a competitive environment includes ensuring proper working conditions, compliance with anti-discrimination laws, equal opportunities, and conditions for career advancement.

A law firm must be prepared to protect its employees’ rights through legal mechanisms, as a healthy and attractive work environment not only facilitates recruitment but also minimizes the risk of labor disputes.

6. Partnerships with Educational Institutions and Specialized Programs

Establishing partnerships with universities and other educational institutions to recruit graduates is an important strategy for law firms. Joint internship programs, training, and professional development initiatives allow companies to shape their talent pool, ensuring candidates are already familiar with corporate requirements. This is especially valuable for law firms specializing in particular areas of law, such as corporate or labor law.

Law firms must also ensure legal support when organizing internships to comply with labor legislation, particularly regarding payments and conditions for interns.

Conclusion

In 2025, the legal labor market faces new challenges related to the shortage of qualified personnel. Strategies focusing on internal development, digitization, flexible work arrangements, the attraction of foreign specialists, and creating attractive conditions for employees can be key tools for addressing these issues. At the same time, law firms must continuously adapt their strategies to changes in labor legislation and international legal norms to ensure effective and secure operations in the new labor market realities.

If your company needs assistance in developing legal strategies to overcome labor resource shortages or if you have questions regarding compliance with legislation in this area, don’t hesitate to contact the legal firm “Fedorishyn & Partners.” Our experts are ready to provide professional support and help solve your legal challenges.

Author: Uliana Luchkevych, lawyer at F&P

A planned inspection of a business is an integral part of economic activity, regulated by Ukrainian legislation. However, business owners are not always prepared for such inspections, which can lead to significant financial costs and legal consequences. That is why it is crucial to prepare your business in advance, following a set of important rules. In this article, we will discuss the 10 main rules for business directors to ensure effective preparation for a planned inspection in accordance with Ukrainian legislation.

1. Timely Monitoring of Changes in Legislation

Changes in legislation are a frequent occurrence, and the business director must stay updated on new requirements to avoid violations. In particular, it is essential to track changes in tax legislation, especially the Tax Code of Ukraine (TCU), as well as laws regulating labor relations, environmental standards, and other critical aspects of business activity.

Example: In 2023, amendments to the Tax Code of Ukraine were passed concerning changes to corporate income tax rates, which may affect the calculation of a company’s tax liabilities. Directors should regularly monitor such changes and promptly adjust their financial reports.

2. Correct Accounting and Documentation Management

According to the Law of Ukraine “On Accounting and Financial Reporting”, every business is required to keep accurate financial records and submit reports on time. During inspections, regulatory authorities check not only tax returns but also the accuracy of income and expense records and compliance with reporting requirements.

Example: During an inspection, it might be found that records of transactions involving fixed assets are improperly kept, which may result in a fine under paragraph 120.1 of the Tax Code of Ukraine. In this case, all relevant documents should be organized in advance for inspection.

3. Reviewing and Updating Employment Contracts

Proper execution of employment contracts and compliance with the Labor Code of Ukraine (LCU) is a key aspect of preparation for an inspection. Inspecting authorities may focus on whether employment contracts meet legal requirements concerning minimum wage, working conditions, leave payments, and the existence of documentation confirming employment.

Example: During an inspection, authorities from the State Labor Inspection may find that certain employment contracts have not been properly executed, leading to penalties under Article 265 of the Labor Code.

4. Updating Founding Documents

According to the Law of Ukraine “On Business Associations”, businesses must keep their founding documents up-to-date. In particular, changes to the company’s charter, changes in the list of founders, or organizational and legal form must be appropriately reflected in the registration documents.

Example: If the company changes its legal address or ownership structure, this must be reflected in the registration documents and updated in the Unified State Register of Legal Entities, Individual Entrepreneurs, and Public Formations.

5. Timely Payment of Taxes and Fees

Businesses must fulfill their tax obligations on time, in accordance with the Tax Code of Ukraine , ensuring compliance with deadlines for VAT, corporate income tax, social security contributions, and other mandatory payments. Failure to do so can lead to significant fines and penalties.

Example: In 2023, tax authorities began more actively inspecting businesses that abuse the simplified taxation system. If tax payments are found to be overdue, substantial fines may be imposed under Article 123 of the Tax Code.

6. Reviewing Contracts with Contractors

It is important to ensure that all contracts with contractors signed by the company comply with legal requirements, are properly executed, and are stored in the company’s archives. The Civil Code of Ukraine regulates the issues of contract formation, performance, and consequences of breach of terms.

Example: During an inspection, a contract with a contractor may be found to lack provisions regarding payment terms or delivery of goods, leading to financial penalties or demands for the return of funds.

7. Complying with Occupational Health and Safety Requirements

According to the Law of Ukraine “On Occupational Health and Safety”, businesses are obligated to create safe working conditions, conduct safety training, organize medical examinations for employees, and more. Violations of these requirements during an inspection can lead to fines.

Example: Identifying safety violations, such as the absence of personal protective equipment in the workplace, can result in serious sanctions from the State Labor Inspection.

8. Preparing Staff for the Inspection

It is essential to conduct training for employees regarding their rights and responsibilities during the inspection, as well as to prepare them for providing necessary documents to the regulatory authorities. This will help avoid disorganization during the inspection and minimize the likelihood of errors.

9. Ensuring Access to Documentation

Inspection authorities must have access to all necessary documents for the inspection. The director should organize a procedure whereby responsible personnel can promptly provide the required documents to the authorities without violating the Law of Ukraine “On Access to Public Information”.

10. Engaging Lawyers for Preparation

Professional legal support is an essential component of preparation for a planned inspection. Lawyers can help assess legal risks, verify compliance with legal requirements, and reduce the likelihood of fines.

Conclusion

Preparing for a planned inspection is a comprehensive process that requires attention to detail and a thorough approach. By following these rules, you will not only reduce the risks of sanctions but also ensure the stable and secure operation of your business in a rapidly evolving legal and economic environment.

Don’t risk the safety of your business! Contact professionals!

If you want to ensure your business is ready for inspection and avoid potential legal issues, reach out to our law firm “Fedoryshyn & Partners”. . We will provide qualified legal advice, assist with business process optimization, and offer reliable legal support at every stage of your company’s operations.

Author: Maryna Pokotylo, Partner at F&P

Anti-corruption policy in Ukraine is not only a crucial component of state policy but also an integral element of every organization striving to be transparent, effective, and responsible. In light of ongoing changes in legislation and the growing demands for corporate accountability, anti-corruption programs have become mandatory for enterprises and organizations of all forms of ownership, as well as for public institutions.

1. Legislative Framework for Anti-Corruption Programs in Ukraine

According to national legislation, the main documents regulating anti-corruption activities in Ukraine are:

• The Law of Ukraine “On Preventing Corruption” (2014), which sets out the framework for combating corruption at all levels of governance, including in the private sector.
• The Law of Ukraine “On Anti-Corruption Programs for Enterprises” (2020), which requires legal entities to develop internal anti-corruption programs.
• Decisions and recommendations from the National Agency for Prevention of Corruption (NAPC), which provide detailed regulations on how to implement these programs and ensure their compliance with legislative requirements.

These legislative innovations provide the necessary legal foundation for creating and implementing anti-corruption programs, offering legal entities clear guidelines on the process of establishing such initiatives.

2. Key Elements of an Anti-Corruption Program

According to current legislation, an anti-corruption program must include the following key components:

1. Anti-Corruption Policy: This document forms the foundation of the program. It must define clear behavioral rules for all employees and managers, including a ban on any form of corrupt practices.
2. Risk Assessment of Corruption: A crucial stage is identifying specific corruption risks that arise in the course of the organization’s activities. Assessing these risks helps understand where and when potential corruption threats may occur.
3. Structure of the Body Responsible for Implementing the Program: As required by law, the enterprise must designate a person or department responsible for the implementation and oversight of the anti-corruption program. This could be a dedicated committee or a compliance officer.
4. Monitoring and Effectiveness Assessment Procedures: The anti-corruption program must include mechanisms for continuous monitoring of its implementation, including regular audits and assessments of the effectiveness of the measures taken.
5. Whistleblowing Mechanisms and Protection: For anti-corruption efforts to be effective, it is important to provide employees with anonymous channels to report violations. This also includes legal protection for whistleblowers from retaliation.
6. Employee Training and Awareness Raising: One of the key elements is providing training programs for staff to ensure they are familiar with anti-corruption standards and know how to respond to potential violations.

3. Process of Implementing an Anti-Corruption Program

Developing and implementing an anti-corruption program is a multi-step process that requires careful organization and planning. The main stages include:

1. Risk and Process Assessment: The organization must begin by conducting an internal audit to identify corruption risks and analyze existing management mechanisms.
2. Developing Anti-Corruption Policies: Internal documents must be created to regulate employee behavior and processes susceptible to corruption risks.
3. Employee Training: It is important to ensure proper training for staff, so that every employee is aware of anti-corruption standards and knows how to respond to potential violations.
4. Implementation of Control Mechanisms: Establishing continuous monitoring and checks to ensure the enforcement of anti-corruption measures.
5. Effectiveness Evaluation and Program Adaptation: After implementation, it is essential to regularly assess the effectiveness of the program and make necessary changes based on new legislative requirements or internal processes.

4. Recent Changes in Legislation

Recent changes to Ukrainian legislation regarding anti-corruption initiatives, particularly since 2023, have strengthened the accountability of companies and organizations in combating corruption. Notably, there is now a greater focus on ensuring that anti-corruption programs are regularly updated and in full compliance with legal standards, given the increased penalties for violations of anti-corruption laws.

5. Why You Should Contact the Legal Firm “Fedoryshyn & Partners”

The development and implementation of an effective anti-corruption program is a complex and critical process that requires a professional approach and detailed legal support. Our law firm “Fedoryshyn & Partners” has extensive experience in advising and assisting businesses on anti-corruption legislation. We can help you develop and implement a program that complies with all current legal requirements while promoting transparency and efficiency within your organization.

Contact us for qualified legal assistance in implementing anti-corruption measures and ensuring the legal security of your business.