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Ease of Doing Business in

Ukraine

Ukraine Download Profile (1799.5KB, pdf)
Region Europe & Central Asia
Income Category Lower middle income
Population 45,198,200
GNI Per Capita (US$) 2,620
City covered Kiev

190

1

DB 2017 Rank

1

100

DB 2017 DTF (% points)

  • local_library
  • group
Topics DB 2017 Rank DB 2016 Rank info_outline Change in Rank DB 2017 DTF (% points) info_outline DB 2016 DTF (% points) info_outline Change in DTF (% points) info_outline
Overall 80 81 up
1
63.90 62.77 down
1.13
Starting a Business 20 24 up
4
94.40 93.88 up
0.52
Dealing with Construction Permits 140 137 down
3
61.42 61.36 up
0.06
Getting Electricity 130 140 up
10
58.45 54.84 up
3.61
Registering Property 63 62 down
1
69.61 69.44 up
0.17
Getting Credit 20 19 down
1
75.00 75.00
-
Protecting Minority Investors 70 101 up
31
56.67 50.00 up
6.67
Paying Taxes 84 83 down
1
72.72 72.99 down
0.27
Trading across Borders 115 110 down
5
64.26 65.15 down
0.89
Enforcing Contracts 81 93 up
12
58.96 57.11 up
1.85
Resolving Insolvency 150 148 down
2
27.50 27.92 down
0.42

Positive= Doing Business reform making it easier to do business.Negative= Change making it more difficult to do business.

DB 2017 Rank:

63

DB 2016 Rank:

62

Change in Rank:

down1

DB 2017 DTF (% points):

69.61

DB 2016 DTF (% points):

69.44

Change in DTF (% points):

up0.17

STANDARD PROPERTY TRANSFER
Property value UAH 2,276,025
City Kiev
Indicator Ukraine Europe & Central Asia OECD high income
Procedures (number) info_outline 7 5.3 4.7
Time (days) info_outline 23 20.6 22.4
Cost (% of property value) info_outline 1.9 2.5 4.2
Quality of the land administration index (0-30) info_outline 15.5 19.8 22.7
  • Measure of efficiency
    No. Procedure Time to Complete Associated Costs
    1

    Assess the price of the land

    Agency: Legal entities which are licenced by the State Center of the Land Cadastre

    The document on expert evaluation of the price of immovable property can be provided by the experts having certified qualification for providing such services. The procedure of evaluation of the expert price of the immovable property is quite complex and includes certain evaluation tools and calculation methods. Expert evaluation of the price of immovable property is required before the notarization of the agreement.

    10 days UAH 1,000
    2

    Obtain the extract from the State Center of the Land Cadastre

    Agency: State Service for Geodesy, Cartography and Cadastre - (Derzhgeocadastre)

    The extract from State Land Cadastre contains full information about the land plot (owner, location, use restrictions, encumbrances etc). The notary may not attest the agreement without such extract. The procedure is governed by Article 38 of the Law 'On State Land Cadastre' and Paragraphs 162 - 186 of the CMU Resolution No 1051. While the CMU Resolution No 1051 allows the notary to obtain the extract electronically, this option is not available for technical reasons.


    The Seller shall submit the following documents to obtain the extract:

    - application in accordance with established form;

    - document confirming payment of fee for issuance of the extract;

    - document confirming powers of the person to request and obtain the extract.

    In addition to the above documents, the Seller shall present original document confirming ownership rights to the land plot (e.g. a

    state act of ownership rights) and personal identification document. The extract is valid for 3 months.


    From 31 August 2015 notary has on-line access to the State Land Cadastre and includes cost of obtaining the extract from the State Land Cadastre into the notary fees.

    In addition, the extract from the State Centre of the Land Cadastre can be also provided through Administration Service Centre. In this case an applicant may order the document (excerpt from the State Land Cadastre about a land plot) online, but will have to visit the Administration Service Centre in order to receive the document.

    10 days
    UAH 68

    3

    Notary registers ownership rights for seller in the new State Register of Property Rights to Immovable Property

    Agency: Notary

    From January 01, 2013, a new State Register of Property Rights to Immovable Property (“Register of Property Rights”) has been launched. Unlike the State Land Cadastre, which automatically absorbed information about all existing land plots from the (no longer active) State Register of Lands, the Register of Property Rights does not contain information about the ownership rights to immovable property which have been registered before January 01, 2013. For this reason, prior to execution of the Property sale and purchase agreement, the Seller has to register ownership rights to the Property in the new Register of Property Rights.


    Registration of Seller's ownership rights to the Property is performed by the notary attesting the sale and purchase agreement. The

    Seller shall provide to the notary:

    - ownership documents to the Property;

    - application in accordance with established form;

    - documents confirming payment of registration fees.

    The notary: (1) checks the Seller’s ownership documents; (2) records Seller's ownership rights in the Register of Property Rights;

    and (3) issues an extract from the Register of Property Rights confirming Seller’s ownership rights to the Property. "


    Starting from January 01, 2016 registration of ownership rights for seller in the new State Register of Property Rights to Immovable Property is not mandatory. The notary may skip this step and proceed directly with the registration of the ownership right of the buyer regardless of the fact that the property to be acquired has not been registered with the Register of Property Rights. Procedures 3-7 are being completed simultaneously at the notary's office.

    However, the procedure is still widelly implemented in practice.

    Less than a day (online procedure)

    UAH 1500 notary fee
    UAH 120 for the initial registration of the land in the new registry of ownership rights
    UAH 120 for the initial registration of the warehouse

    4

    Obtain the extract from the State Register of Encumbrances over movable property

    Agency: Notary

    The notary will verify through this procedure that the tax authorities have not registered a security interest over the real property. Since January 2013, the notaries can obtain this information online.

    Less than a day (online procedure)

    UAH 34

    5

    Check for encumbrances at the State Registry of Property Rights on Immovable Property

    Agency: Notary

    Notary searches the former State Register of Ownership Rights to Immovable Property, State Register of Mortgages, State Register of Immovable Property Alienation Bans and State Register of Encumbrances over Movable Property.

    From January 01, 2013, three state registers containing information about encumbrances on immovable property:
    (1) State Register of Mortgages;
    (2) State Register of Immovable Property Alienation Bans; and
    (3) State Register of Encumbrances over Movable Property (in respect of tax liens) – are inactive. These registers serve only as a source of information for the notary who transfers the relevant encumbrances from these registers to the Register of Property Rights upon first-time registration of ownership rights to immovable property in the Register of Property Rights. Therefore, to verify encumbrances on the property ownership rights to which have been registered in the Register of Property Rights, the notary will search only in this register. This procedure takes one day and is performed on the same day on which the Property sale and purchase agreement is executed, prior to the execution of the agreement.

    Less than a days (online; simultaneous with procedures 6 & 7)
    UAH 51 for the Seller's LLC
    UAH 51 for checking against encumbrances on land
    UAH 51 for checking against encumbrances on warehouse

    * 6

    Prepare and notarize the sale agreement (land and building)

    Agency: Notary

    The sale purchase agreement of the building is notarized by a private or public notary. Notary’s fees are agreed among parties. There could be one single agreement underpinning both sale of building and sale of land or be two separate agreements: the sale of building (warehouse) and the sale of land parcel. Parties can prepare the sale agreements by themselves before notarization, but usually the notary prefers to use his standard proforma.


    State Duty (fee) is paid to the notary and equals 1% of the transactional value of the building. The buyer of the building will also pay a special assessment in the amount of 1% of building’s transactional value to the State Pension Fund. The buyer can make the payment to the State Pension Fund prior to the notarization of building sale agreement or provide the notary with the money to make such payment.


    The documentation shall include:

    • Ownership documents

    • Founding documents of the company

    • Decision with respect to the sale of the building (if necessary)

    • Extract from the State Land Cadastre,

    • Extracts from the Unified State Registry of Legal Persons and Physical Persons - Entrepreneurs (documents - copy of the passport and application, issuing authority - any State District Administration in the City (but it is recommended to obtain it in the administration in which respective legal person was registered))

    • Act of evaluation of parcel of land, powers of attorney (if necessary)

    • Notary certifies agreement, makes inscription on the State Certificate on Land Ownership as to the transference of title over parcel of land to new owner, registers information as to the transaction in the Unified State Registry of Transactions and issues an extract from this registry on above mentioned transaction.

    1 day (simultaneous with procedures 5 & 7)

    Notary fee for the land (paid by the buyer): UAH 1,500
    Notary fee for the warehouse (paid by the buyer): UAH 1,500
    1% of the value of the land
    1% of the value of the warehouse
    1% of the value of the warehouse (NOT THE LAND, only the building) for the pension fund contribution.

    * 7

    Notary registers Buyer's ownership rights on the property in the Register of Property Rights

    Agency: Notary

    From January 01, 2013, the registration of ownership rights to immovable property (other than newly constructed building/newly allotted land plot in some other cases) is performed by notaries attesting the sale and purchase agreement (Articles 3.5, 9 of the Law of Ukraine “On State Registration of Property Rights to Immovable Property and Their Encumbrances”).


    Following notarial attestation of the Property sale and purchase agreement, the notary shall register Buyer’s ownership rights to the Property in the Register of Property Rights. The procedure of registration is governed by Articles 15-24 of the Law of Ukraine “On State Registration of Property Rights to Immovable Property and Their Encumbrances” No 1952-IV of July 01, 2004, as restated and amended, and the Resolution of Cabinet of Ministers of Ukraine No 703 dated June 22, 2011, as amended (“CMU Resolution No 703”). The registration is performed by the notary based on the Buyer’s application (in accordance with established form) and the Property sale and purchase agreement. Upon registration of Buyer’s ownership rights to the Property, the notary issues an extract from the Register of Property Rights for the Buyer.

    Less than a day (online procedure; simultaneous with procedures 5 & 6)

    Notary fee: UAH 1,500
    UAH 730.8 administrative fee for the land ownership transfer (adminsbor)
    UAH 730.8 administrative fee for the warehouse ownership transfer (adminsbor)
    UAH 120 (land) registration fee
    UAH 120 (warehouse) registration fee.

    * Takes place simultaneously with previous procedure.

  • Measure of quality
    Answer Score
    Quality of the land administration index (0-30) 15.5
    Reliability of infrastructure index (0-8) 6.0
    What is the institution in charge of immovable property registration? State Registry on Property Rights under the Ministry of Justice
    In what format are the majority of title or deed records kept in the largest business city—in a paper format or in a computerized format (scanned or fully digital)? Computer/Scanned 1.0
    Is there an electronic database for checking for encumbrances (liens, mortgages, restrictions and the like)? Yes 1.0
    In what format are the majority of maps of land plots kept in the largest business city—in a paper format or in a computerized format (scanned or fully digital)? Computer/Fully digital 2.0
    Is there an electronic database for recording boundaries, checking plans and providing cadastral information (geographic information system)? Yes 1.0
    Is the information recorded by the immovable property registration agency and the cadastral or mapping agency kept in a single database, in different but linked databases or in separate databases? Separate databases 0.0
    Do the immovable property registration agency and cadastral or mapping agency use the same identification number for properties? Yes 1.0
    Transparency of information index (0–6) 3.0
    Who is able to obtain information on land ownership at the agency in charge of immovable property registration in the largest business city? Only intermediaries (notaries, lawyers, etc.) 0.0
    Is the list of documents that are required to complete any type of property transaction made publicly available–and if so, how? Yes, online 0.5
    Link for online access: http://zakon2.rada.gov.ua/laws/show/z0282-12/paran19#n19
    Is the applicable fee schedule for any property transaction at the agency in charge of immovable property registration in the largest business city made publicly available–and if so, how? Yes, on public boards 0.5
    Link for online access:
    Does the agency in charge of immovable property registration commit to delivering a legally binding document that proves property ownership within a specific time frame–and if so, how does it communicate the service standard? Yes, online 0.5
    Link for online access: http://ddr.minjust.gov.ua/uk/4424bbf47abcd8a3a6f65ca7a0256435/normatyvnopra...
    Is there a specific and separate mechanism for filing complaints about a problem that occurred at the agency in charge of immovable property registration? No 0.0
    Are there publicly available official statistics tracking the number of transactions at the immovable property registration agency? No 0.0
    Number of property transfers in the largest business city in 2015:
    Who is able to consult maps of land plots in the largest business city? Freely accessible by anyone 0.5
    Is the applicable fee schedule for accessing maps of land plots made publicly available—and if so, how? Yes, on public boards 0.5
    Link for online access:
    Does the cadastral or mapping agency commit to delivering an updated map within a specific time frame—and if so, how does it communicate the service standard? Yes, on public boards 0.5
    Link for online access:
    Is there a specific and separate mechanism for filing complaints about a problem that occurred at the cadastral or mapping agency? No 0.0
    Geographic coverage index (0–8) 0.0
    Are all privately held land plots in the economy formally registered at the immovable property registry? No 0.0
    Are all privately held land plots in the largest business city formally registered at the immovable property registry? No 0.0
    Are all privately held land plots in the economy mapped? No 0.0
    Are all privately held land plots in the largest business city mapped? No 0.0
    Land dispute resolution index (0–8) 6.5
    Does the law require that all property sale transactions be registered at the immovable property registry to make them opposable to third parties? Yes 1.5
    Is the system of immovable property registration subject to a state or private guarantee? Yes 0.5
    Is there a specific compensation mechanism to cover for losses incurred by parties who engaged in good faith in a property transaction based on erroneous information certified by the immovable property registry? No 0.0
    Does the legal system require a control of legality of the documents necessary for a property transaction (e.g., checking the compliance of contracts with requirements of the law)? Yes 0.5
    If yes, who is responsible for checking the legality of the documents? Notary.
    Does the legal system require verification of the identity of the parties to a property transaction? Yes 0.5
    If yes, who is responsible for verifying the identity of the parties? Notary.
    Is there a national database to verify the accuracy of identity documents? No 0.0
    For a standard land dispute between two local businesses over tenure rights of a property worth 50 times gross national income (GNI) per capita and located in the largest business city, what court would be in charge of the case in the first instance? he Commercial (Economic) Court of Kyiv
    How long does it take on average to obtain a decision from the first-instance court for such a case (without appeal)? Less than a year 3.0
    Are there any statistics on the number of land disputes in the first instance? Yes 0.5
    Number of land disputes in the largest business city in 2015: 3357 out of 68226 cases
    Equal access to property rights index (-2–0) 0.0
    Do unmarried men and unmarried women have equal ownership rights to property? Yes 0.0
    Do married men and married women have equal ownership rights to property? Yes 0.0