How to Start Your Business in Ukraine

You are an entrepreneur and you have made up your mind to start a business in Ukraine. First, as any businessman knows you have to start with a business plan. Create a list of everything that your business requires and proceed with a plan for your business campaign. 

Determine your market outlet and build your advertising plan. Do not forget to identify articles of association or a company charter. In case you find it difficult, you may always apply to experts for help.

The Things to Consider When Starting Your Venture in Ukraine

Even though many aspects must be taken into consideration when planning a business in Ukraine, still we may distinguish the three most important of them:

1. Climatic parameters. Ukraine is located within a mid-latitude zone that implies four seasons.
2. Economic environment. The Ukrainian economy is undergoing hard times now, therefore be ready for some challenges.
3. Infrastructural aspects. The infrastructure is quite developed, but far from ideal.

The Main Advantages of Starting a Venture in Ukraine

The main benefit is that the local authorities are always eager to help any start-up. Many talented entrepreneurs in Ukraine can always be useful prompting a new venture to avoid any possible traps and pitfalls.

Another plus is that your business will have easy access to the global market allowing you to be in trend concerning everything. At the same time, a new enterprise can always offer more job opportunities making people’s welfare higher. Moreover, business endeavors will be able to distribute their production and services to foreign countries.

Double Taxation Avoidance Agreements in Ukraine

All businesses that have their affiliated institutions and branch establishments abroad are subject to double taxation for the same income, which implies one taxation in the home country and another one in the foreign country where such income has been produced.

Of course, such a situation leads to the discouragement of international business activity. This issue was resolved by the creation of the DTAA (Double Taxation Avoidance Agreement) when the two countries sign it thereby promoting capital investment and the rest of the economic activities between the two nations. As a result, many countries organize such double taxation agreements that spare businesses from double taxation when it comes to cross-border income streams.

Ten Best Ukrainian Start-ups

The table includes the start-ups according to the following criteria: at least one of the start-up founders must have Ukrainian citizenship and work in Ukraine or the largest development center must be located in Ukraine.

The Place	Company	Sector	Valuation	Investments
1	Gitlab	Development	6 billion USD	434 million $
2	Grammarly	Web services	2.5 billion USD	200 million $
3	Ajax Systems	Smart devices	500 million USD	11 million $
4	People.ai	CRM	450 million USD	107 million $
5	Restream	Streaming	250 million USD	55 million $
6	MacPaw	Applications	220 million USD	0
7	Jiji	E-commerce	200 million USD	50 million$
8	Preply	Online training	180 million USD	51.3 million $
9	Depositphotos	Photobank	150 million USD	8 million $
10	Jooble	Job search	110 million USD	0

The Moments that Guarantee Success of Your Start-up

Several obvious points may ensure a good start for your enterprise in Ukraine. Let us recite them:

• Create a solid business plan. Your venture may end soon if you do not have a business plan that takes into account all the tiny details. Be sure that your business plan is feasible;
• Choose the correct resources for your investments. Select only the best whether it is talented workers or high-quality tools and equipment. Find successful partners that will make your road to prosperity easy and interesting;
• Expand your business. Conducting your business try to be as independent as you can and do not rely much on others. Try to grow your business since there is no such thing as stability – you either grow or go down.

The Obstacles that You May Encounter at the Start of Your Business in Ukraine

There are certain issues that you can come across when trying to start your venture in Ukraine. One of them is the expense of resources and the lack of access to capital. Moreover, the legal and regulatory framework is questionable bringing about some problems to get started. 

However, no challenges are that formidable for those who know how to act right in this or that situation. There are tools that resolve all these questions.

The Ways to Secure Your Enterprise from Possible Risks in Ukraine

The list of the following potential hazards is related to the current political environment of the state:

• Risks related to a possible race for power that involves local authorities and opposition teams;
• Threats associated with the military collisions in the East of Ukraine;
• The specter of the dim future of current governmental authorities and their ability to keep control of the state.

It would be nice if you were ready for any possible disruptions, military presence, and enhanced threats to security when it comes to your business affairs. Create a plan to avoid any such situations.

Be updated regarding everything around you. It will help you to get rid of any possible risks that you may face in the future and protect your venture. The access to any insider information would be a great solution for anything.

Establish the process of customer complaints resolution. It may happen that your clients will not take into consideration all the inconveniences caused by all the risks that were mentioned above. If they feel unsatisfied, they may start to look for another source of similar products or services.

Necessary Aspects Required to Start Any Business in Ukraine

Four criteria of any successful startup in Ukraine:

1. The uniqueness of the idea for a venture. Thinking about their start-up emergent entrepreneurs have a choice – whether to invent something brand-new or to copy some product and improve it.
2. Consumer demand for your product or service.
3. Start-up founder.
4. A team for start-up implementation.

Three Most Common Blunders Made by New Ventures in Ukraine

Nobody is insured from any mistake. All that we can do is to consider the most common of them and try to avoid them in the future. What you should focus on:

• Any feedback is important. Try to communicate with your investors as often as it is possible. Many successful projects stayed alive only because of perfect communication between all its members;
• Do not underestimate your competitors. It would be a mistake to assume that your rivals are less experienced or do not know something that you know;
• Adjust your business to the market demands. The market is rather volatile and sometimes unpredictable. Make correct estimations and follow the prevailing winds.