Doing Business 2018 Ukraine Economy Pro le of Ukraine Doing Business 2018 Indicators (in order of appearance in the document) Starting a business Procedures, time, cost and paid-in minimum capital to start a limited liability company Dealing with construction Procedures, time and cost to complete all formalities to build a warehouse and the quality control and permits safety mechanisms in the construction permitting system Getting electricity Procedures, time and cost to get connected to the electrical grid, the reliability of the electricity supply and the transparency of tariffs Registering property Procedures, time and cost to transfer a property and the quality of the land administration system Getting credit Movable collateral laws and credit information systems Protecting minority investors Minority shareholders’ rights in related-party transactions and in corporate governance Paying taxes Payments, time and total tax rate for a firm to comply with all tax regulations as well as post-filing processes Trading across borders Time and cost to export the product of comparative advantage and import auto parts Enforcing contracts Time and cost to resolve a commercial dispute and the quality of judicial processes Resolving insolvency Time, cost, outcome and recovery rate for a commercial insolvency and the strength of the legal framework for insolvency Labor market regulation Flexibility in employment regulation and aspects of job quality About Doing Business The Doing Business project provides objective measures of business regulations and their enforcement across 190 economies and selected cities at the subnational and regional level. The Doing Business project, launched in 2002, looks at domestic small and medium-size companies and measures the regulations applying to them through their life cycle. Doing Business captures several important dimensions of the regulatory environment as it applies to local rms. It provides quantitative indicators on regulation for starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts and resolving insolvency. Doing Business also measures features of labor market regulation. Although Doing Business does not present rankings of economies on the labor market regulation indicators or include the topic in the aggregate distance to frontier score or ranking on the ease of doing business, it does present the data for these indicators. By gathering and analyzing comprehensive quantitative data to compare business regulation environments across economies and over time, Doing Business encourages economies to compete towards more e cient regulation; o ers measurable benchmarks for reform; and serves as a resource for academics, journalists, private sector researchers and others interested in the business climate of each economy. In addition, Doing Business o ers detailed subnational reports, which exhaustively cover business regulation and reform in di erent cities and regions within a nation. These reports provide data on the ease of doing business, rank each location, and recommend reforms to improve performance in each of the indicator areas. Selected cities can compare their business regulations with other cities in the economy or region and with the 190 economies that Doing Business has ranked. The rst Doing Business report, published in 2003, covered 5 indicator sets and 133 economies. This year’s report covers 11 indicator sets and 190 economies. Most indicator sets refer to a case scenario in the largest business city of each economy, except for 11 economies that have a population of more than 100 million as of 2013 (Bangladesh, Brazil, China, India, Indonesia, Japan, Mexico, Nigeria, Pakistan, the Russian Federation and the United States) where Doing Business, also collected data for the second largest business city. The data for these 11 economies are a population-weighted average for the 2 largest business cities. The project has bene ted from feedback from governments, academics, practitioners and reviewers. The initial goal remains: to provide an objective basis for understanding and improving the regulatory environment for business around the world. Page 2   for insolvency Doing Business Labor market 2018 regulation Ukraine Flexibility in employment regulation and aspects of job quality About Doing Business The Doing Business project provides objective measures of business regulations and their enforcement across 190 economies and selected cities at the subnational and regional level. The Doing Business project, launched in 2002, looks at domestic small and medium-size companies and measures the regulations applying to them through their life cycle. Doing Business captures several important dimensions of the regulatory environment as it applies to local rms. It provides quantitative indicators on regulation for starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts and resolving insolvency. Doing Business also measures features of labor market regulation. Although Doing Business does not present rankings of economies on the labor market regulation indicators or include the topic in the aggregate distance to frontier score or ranking on the ease of doing business, it does present the data for these indicators. By gathering and analyzing comprehensive quantitative data to compare business regulation environments across economies and over time, Doing Business encourages economies to compete towards more e cient regulation; o ers measurable benchmarks for reform; and serves as a resource for academics, journalists, private sector researchers and others interested in the business climate of each economy. In addition, Doing Business o ers detailed subnational reports, which exhaustively cover business regulation and reform in di erent cities and regions within a nation. These reports provide data on the ease of doing business, rank each location, and recommend reforms to improve performance in each of the indicator areas. Selected cities can compare their business regulations with other cities in the economy or region and with the 190 economies that Doing Business has ranked. The rst Doing Business report, published in 2003, covered 5 indicator sets and 133 economies. This year’s report covers 11 indicator sets and 190 economies. Most indicator sets refer to a case scenario in the largest business city of each economy, except for 11 economies that have a population of more than 100 million as of 2013 (Bangladesh, Brazil, China, India, Indonesia, Japan, Mexico, Nigeria, Pakistan, the Russian Federation and the United States) where Doing Business, also collected data for the second largest business city. The data for these 11 economies are a population-weighted average for the 2 largest business cities. The project has bene ted from feedback from governments, academics, practitioners and reviewers. The initial goal remains: to provide an objective basis for understanding and improving the regulatory environment for business around the world. The distance to frontier (DTF) measure shows the distance of each economy to the “frontier,” which represents the best performance observed on each of the indicators across all economies in the Doing Business sample since 2005. An economy’s distance to frontier is re ected on a scale from 0 to 100, where 0 represents the lowest performance and 100 represents the frontier. The ease of doing business ranking ranges from 1 to 190. The ranking of 190 economies is determined by sorting the aggregate distance to frontier scores, rounded to two decimals. More about Doing Business (PDF, 5MB) Ease of Doing Business in Region Europe & Central Asia DB 2018 Rank 190 1 Ukraine Income Category Lower middle income 76 Population 45,004,645 DB 2018 Distance to Frontier (DTF) GNI Per Capita (US$) 2,310 0 100 65.75 City Covered Kiev DB 2018 Distance to Frontier (DTF) 0 100 75.44: Kazakhstan (Rank: 36) 75.06: Belarus (Rank: 38) 73.00: Moldova (Rank: 44) 71.33: Regional Average (Europe & Central Asia) 65.75: Ukraine (Rank: 76) Page 3   65.70: Kyrgyz Republic (Rank: 77) aggregate distance to frontier scores, rounded to two decimals. More Doingabout 2018 (PDF, Doing Business Business 5MB) Ukraine Ease of Doing Business in Region Europe & Central Asia DB 2018 Rank 190 1 Ukraine Income Category Lower middle income 76 Population 45,004,645 DB 2018 Distance to Frontier (DTF) GNI Per Capita (US$) 2,310 0 100 65.75 City Covered Kiev DB 2018 Distance to Frontier (DTF) 0 100 75.44: Kazakhstan (Rank: 36) 75.06: Belarus (Rank: 38) 73.00: Moldova (Rank: 44) 71.33: Regional Average (Europe & Central Asia) 65.75: Ukraine (Rank: 76) 65.70: Kyrgyz Republic (Rank: 77) Note: The distance to frontier (DTF) measure shows the distance of each economy to the “frontier,” which represents the best performance observed on each of the indicators across all economies in the Doing Business sample since 2005. An economy’s distance to frontier is re ected on a scale from 0 to 100, where 0 represents the lowest performance and 100 represents the frontier. The ease of doing business ranking ranges from 1 to 190. Rankings on Doing Business topics - Ukraine 1 29 28 35 43 52 55 64 81 82 82 Rank 109 119 128 136 149 163 190 Starting Dealing Getting Registering Getting Protecting Paying Trading Enforcing Resolving a with Electricity Property Credit Minority Taxes across Contracts Insolvency Business Construction Investors Borders Permits Distance to Frontier (DTF) on Doing Business topics - Ukraine 100 91.05 80.77 80 75.81 75.00 69.61 64.26 58.80 58.96 60 55.00 DTF 40 28.24 20 0 Starting Dealing Getting Registering Getting Protecting Paying Trading Enforcing Resolving a with Electricity Property Credit Minority Taxes across Contracts Insolvency Business Construction Change:+0.35 Change:+0.11 Change:0.00 Investors Change:+6.50 Borders Change:0.00 Change:+0.29 Change:+0.02 Permits Change:+1.67 Change:0.00 Change:+10.04 Starting a Business Page 4   This topic measures the paid-in minimum capital requirement, number of procedures, time and cost for a small- to medium-sized a with Electricity Property Credit Minority Taxes across Contracts Insolvency Business Construction Change:+0.35 Change:+0.11 Change:0.00 Investors Change:+6.50 Borders Change:0.00 Change:+0.29 Change:+0.02 Permits Change:+1.67 Change:0.00 Doing Business 2018 Ukraine Change:+10.04 Starting a Business This topic measures the paid-in minimum capital requirement, number of procedures, time and cost for a small- to medium-sized limited liability company to start up and formally operate in economy’s largest business city. To make the data comparable across 190 economies, Doing Business uses a standardized business that is 100% domestically owned, has start-up capital equivalent to 10 times income per capita, engages in general industrial or commercial activities and employs between 10 and 50 people one month after the commencement of operations, all of whom are domestic nationals. Starting a Business considers two types of local limited liability companies that are identical in all aspects, except that one company is owned by 5 married women and the other by 5 married men. The distance to frontier score for each indicator is the average of the scores obtained for each of the component indicators. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Procedures to legally start and operate a To make the data comparable across economies, several assumptions company (number) about the business and the procedures are used. It is assumed that any required information is readily available and that the entrepreneur will pay Pre-registration (for example, name verification no bribes. or reservation, notarization) Registration in economy’s largest business city The business: - Is a limited liability company (or its legal equivalent). If there is more than Post-registration (for example, social security one type of limited liability company in the economy, the most common registration, company seal) among domestic rms is chosen. Information on the most common form is Obtaining approval from spouse to start business obtained from incorporation lawyers or the statistical o ce. or leave home to register company - Operates in the economy’s largest business city and the entire o ce Obtaining any gender-specific permission that space is approximately 929 square meters (10,000 square feet). For 11 can impact company registration, company economies the data are also collected for the second largest business city. operations and process of getting national - Is 100% domestically owned and has ve owners, none of whom is a legal identity card entity; and has a start-up capital of 10 times income per capita and has a Time required to complete each procedure turnover of at least 100 times income per capita. (calendar days) - Performs general industrial or commercial activities, such as the production or sale of goods or services to the public. The business does Does not include time spent gathering not perform foreign trade activities and does not handle products subject information to a special tax regime, for example, liquor or tobacco. It does not use Each procedure starts on a separate day (2 heavily polluting production processes. procedures cannot start on the same day) - Leases the commercial plant or o ces and is not a proprietor of real Procedures fully completed online are recorded estate and the amount of the annual lease for the o ce space is equivalent as ½ day to 1 times income per capita. Procedure is considered completed once final - Does not qualify for investment incentives or any special bene ts. document is received - Has at least 10 and up to 50 employees one month after the commencement of operations, all of whom are domestic nationals. No prior contact with officials - Has a company deed 10 pages long. Cost required to complete each procedure (% of The owners: income per capita) - Have reached the legal age of majority. If there is no legal age of majority, Official costs only, no bribes they are assumed to be 30 years old. No professional fees unless services required by - Are sane, competent, in good health and have no criminal record. law or commonly used in practice - Are married and the marriage is monogamous and registered with the authorities. Paid-in minimum capital (% of income per capita) - Where the answer di ers according to the legal system applicable to the Funds deposited in a bank or with third party woman or man in question (as may be the case in economies where there before registration or up to 3 months after is legal plurality), the answer used will be the one that applies to the incorporation majority of the population. Standardized Company Page 5   before registration or up to 3 months after is legal plurality), the answer used will be the one that applies to the incorporation majority of the population. Doing Business 2018 Ukraine Standardized Company Legal form Tovarystvo z Obmezhenoyu Vidpovidalnistyu - Limited Liability Company Paid-in minimum capital requirement UAH 0 City Covered Kiev Europe & OECD high Indicator Ukraine Central Asia income Overall Best Performer Procedure – Men (number) 6 5.2 4.9 1.00 (New Zealand) Time – Men (days) 6.5 10.1 8.5 0.50 (New Zealand) Cost – Men (% of income per capita) 0.8 4.4 3.1 0.00 (United Kingdom) Procedure – Women (number) 6 5.2 4.9 1.00 (New Zealand) Time – Women (days) 6.5 10.1 8.5 0.50 (New Zealand) Cost – Women (% of income per capita) 0.8 4.4 3.1 0.00 (United Kingdom) Paid-in min. capital (% of income per capita) 0.0 3.4 8.7 0.00 (113 Economies) Figure – Starting a Business in Ukraine and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 93.76: Moldova (Rank: 23) 92.94: Kyrgyz Republic (Rank: 29) 92.91: Belarus (Rank: 30) 91.95: Kazakhstan (Rank: 41) 91.05: Ukraine (Rank: 52) 90.62: Regional Average (Europe & Central Asia) Note: The ranking of economies on the ease of starting a business is determined by sorting their distance to frontier scores for starting a business. These scores are the simple average of the distance to frontier scores for each of the component indicators. Figure – Starting a Business in Ukraine – Procedure, Time and Cost Time Cost 0.45 6 0.4 ost (% of income per capita) 5 0.35 0.3 4 Time (days) 0.25 3 0.2 0.15 2 Page 6   0.1 starting a business. These scores are the simple average of the distance to frontier scores for each of the component indicators. Doing Business 2018 Ukraine Figure – Starting a Business in Ukraine – Procedure, Time and Cost Time Cost 0.45 6 0.4 Cost (% of income per capita) 5 0.35 0.3 4 Time (days) 0.25 3 0.2 0.15 2 0.1 1 0.05 0 0 1 2 3 4 5 6 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a di erent procedure list for men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website (http://www.doingbusiness.org/methodology). For details on the procedures re ected here, see the summary below. Details – Starting a Business in Ukraine – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Register at the Registration O ce 1 day no charge Agency : State Registrar, Notary Currently, the LLC founders to enforce its registration must submit to the registrar or notary the following documents according to Art. 17 of the Law of Ukraine "On State Registration of Legal Entities, Individual Entrepreneurs and Public Formations" No.755-IV, dated May 15, 2003: - Form 1 "Application for registration of legal entity" (format approved by the order of Ministry of Justice of Ukraine dated 18 November 2016 No. 3268/5); - original or notarized copy of the decision of founders on establishment of the entity (Minutes of General Meeting of Participants); - LLC company's charter executed by the founders. Information about individual bene ciary owners is to be speci ed in the text of application form itself and is not a separate document, as it was in 2015. Online registration system (https://kap.minjust.gov.ua/, http://rp.irc.gov.ua/) is available, however not popular due to a complicated procedure for submitting the documents online. 2 Prepare a seal 1 day UAH 190-250, Agency : Sealmaker depending on the complexity of a seal The use of a company seal is not mandated by law but the seal is widely use in practice. Еhe state and local authorities, banks and notaries generally accept documents that are not certi ed with a company seal. However, in some cases, such they may request a duly certi ed copy of the company's Page 7   document containing resolution to not use a company seal (e.g., the (http://www.doingbusiness.org/methodology). For details on the procedures re ected here, see the summary below. Doing Business 2018 Ukraine Details – Starting a Business in Ukraine – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Register at the Registration O ce 1 day no charge Agency : State Registrar, Notary Currently, the LLC founders to enforce its registration must submit to the registrar or notary the following documents according to Art. 17 of the Law of Ukraine "On State Registration of Legal Entities, Individual Entrepreneurs and Public Formations" No.755-IV, dated May 15, 2003: - Form 1 "Application for registration of legal entity" (format approved by the order of Ministry of Justice of Ukraine dated 18 November 2016 No. 3268/5); - original or notarized copy of the decision of founders on establishment of the entity (Minutes of General Meeting of Participants); - LLC company's charter executed by the founders. Information about individual bene ciary owners is to be speci ed in the text of application form itself and is not a separate document, as it was in 2015. Online registration system (https://kap.minjust.gov.ua/, http://rp.irc.gov.ua/) is available, however not popular due to a complicated procedure for submitting the documents online. 2 Prepare a seal 1 day UAH 190-250, Agency : Sealmaker depending on the complexity of a seal The use of a company seal is not mandated by law but the seal is widely use in practice. Еhe state and local authorities, banks and notaries generally accept documents that are not certi ed with a company seal. However, in some cases, such they may request a duly certi ed copy of the company's document containing resolution to not use a company seal (e.g., the company's charter, respective resolution of the highest governing body, etc.). 3 Notarize signature card 1 day UAH 150-250 Agency : Notary Notarized signature card is required to open a bank account. 4 Open a permanent bank account 1 day no charge Agency : Bank According to the Regulation of the National Bank of Ukraine No. 492 dated November 12, 2003 on Approval of the Instruction "On the order of opening, use and closure of accounts in local and foreign currencies" (with amendments), the list of required documents for opening of the bank account for the Legal Entity includes: - the copy of the charter of the LLC (simple copy certi ed by the director of the LLC or notarized copy); - a notarized copy of the signature card; - completed bank questionnaire; - completed application form(s) to open a bank account(s), as well as to Page 8   Agency : Notary Doing Notarized Business 2018 card signature is required to open a bank account. Ukraine 4 Open a permanent bank account 1 day no charge Agency : Bank According to the Regulation of the National Bank of Ukraine No. 492 dated November 12, 2003 on Approval of the Instruction "On the order of opening, use and closure of accounts in local and foreign currencies" (with amendments), the list of required documents for opening of the bank account for the Legal Entity includes: - the copy of the charter of the LLC (simple copy certi ed by the director of the LLC or notarized copy); - a notarized copy of the signature card; - completed bank questionnaire; - completed application form(s) to open a bank account(s), as well as to activate the online banking system; - signed bank account agreement, etc. (depends on the requirements of the particular bank); - due to anti-money laundering rules, the bank will require disclosure of the whole group structure of the founder(s) down to the natural persons who are the ultimate bene cial owners of the founder(s) (if any). The above list of information/documents is not exhaustive and may be changed due to the requirements of the speci c bank. In case the incorporation of a company was done electronically, no paper version of the charter should be submitted. If the LLC did not open a bank account prior to the state registration of a limited liability company, the bank, pursuant to the Tax Code, must notify the tax inspection about the account opening within 1 business day after the account opening. Within three business days after receiving a noti cation from the bank, the tax inspection must notify the bank on registration of the account or about refusal to register the account. In practice, noti cation of the tax inspection by bank and receiving answer from the tax inspection takes 1-2 business days. A limited liability company may use its account for out ow operations only after the bank receives noti cation from the tax inspection on registration of the respective account. According to the Tax Code Amendments and the Noti cation Order, the bank shall notify the Ministry of Duties and Revenues of Ukraine via Internet about the account opening within 1 business day. After receiving the electronic noti cation through the Internet portal, a local tax authority within 1 business day shall notify the bank about registration of the account/refusal to register the account (if applicable). 5 Register VAT at the State Tax Authority and obtain a VAT number 2 days no charge Agency : District Tax O ce Page 9   As de ned in Law No. 71-VIII On Amendments to the Tax Code of Ukraine and to register the account (if applicable). Doing Business 2018 Ukraine 5 Register VAT at the State Tax Authority and obtain a VAT number 2 days no charge Agency : District Tax O ce As de ned in Law No. 71-VIII On Amendments to the Tax Code of Ukraine and some Legislative Acts of Ukraine Concerning Tax Reform which went into e ect on January 1, 2015, if the total amount of transactions with delivery of goods or/and services, including the use of local or global computer network, charged (paid) during last 12 calendar months, totally exceeds UAH 1 million (excluding VAT), such company is obliged to register as VAT taxpayer, except single tax payer company. Actually, Art. 182 of the above mentioned Tax Code also provides option for voluntarily VAT taxpayer registration. The Government of Ukraine issued an Order of the Ministry of Finance № 185/26630 “On Amendments to the Regulation on registration of taxpayers VAT” on February 2, 2015, which came into e ect on March 30, 2015. The aforementioned order stipulates that the VAT registration shall be made within 3 working days after ling the registration statement to the state authority. In the future, the ling of the VAT registration statement will be done electronically. The online system is not yet operational in practice. 6 Register employees with the State Fiscal Service Less than a day no charge Agency : State Fiscal Service (online procedure) According to Article 24 of the Labor Code of Ukraine, an employer is obliged to notify local tax authority of hiring an employee at least one day prior to commencement of work. The procedure for noti cation was set by the Regulation of the Cabinet of Ministers of Ukraine no. 413 dated 17 June 2015. The noti cation can be done in one of the following forms: 1) by ling a lled form to the local tax authority (provided that number of hired employees does not exceed 5); 2) by both lling a lled form to the local tax authority and a digital copy of the form; 3) by ling a lled electronic form using electronic digital signature. Most companies use online systems to notify tax authorities about employment. Applies to women only. Takes place simultaneously with previous procedure. Dealing with Construction Permits This topic tracks the procedures, time and cost to build a warehouse—including obtaining necessary the licenses and permits, submitting all required noti cations, requesting and receiving all necessary inspections and obtaining utility connections. In addition, the Dealing with Construction Permits indicator measures the building quality control index, evaluating the quality of building regulations, the strength of quality control and safety mechanisms, liability and insurance regimes, and professional certi cation requirements. The most recent round of data collection was completed in June 2017. See the methodology for more information What the indicators measure Case study assumptions Procedures to legally build a warehouse (number) To make the data comparable across economies, several assumptions about the construction company, the warehouse project and the utility Submitting all relevant documents and obtaining connections are used. all necessary clearances, licenses, permits and certificates The construction company (BuildCo): Page 10   Submitting all required notifications and - Is a limited liability company (or its legal equivalent) and operates in the Applies to women only. Takes place simultaneously with previous procedure. Doing Business 2018 Ukraine Dealing with Construction Permits This topic tracks the procedures, time and cost to build a warehouse—including obtaining necessary the licenses and permits, submitting all required noti cations, requesting and receiving all necessary inspections and obtaining utility connections. In addition, the Dealing with Construction Permits indicator measures the building quality control index, evaluating the quality of building regulations, the strength of quality control and safety mechanisms, liability and insurance regimes, and professional certi cation requirements. The most recent round of data collection was completed in June 2017. See the methodology for more information What the indicators measure Case study assumptions Procedures to legally build a warehouse (number) To make the data comparable across economies, several assumptions about the construction company, the warehouse project and the utility Submitting all relevant documents and obtaining connections are used. all necessary clearances, licenses, permits and certificates The construction company (BuildCo): Submitting all required notifications and - Is a limited liability company (or its legal equivalent) and operates in the receiving all necessary inspections economy’s largest business city. For 11 economies the data are also collected for the second largest business city. Obtaining utility connections for water and - Is 100% domestically and privately owned; has ve owners, none of whom sewerage is a legal entity. Has a licensed architect and a licensed engineer, both Registering and selling the warehouse after its registered with the local association of architects or engineers. BuildCo is completion not assumed to have any other employees who are technical or licensed Time required to complete each procedure experts, such as geological or topographical experts. (calendar days) - Owns the land on which the warehouse will be built and will sell the warehouse upon its completion. Does not include time spent gathering information The warehouse: Each procedure starts on a separate day— - Will be used for general storage activities, such as storage of books or though procedures that can be fully completed stationery. online are an exception to this rule - Will have two stories, both above ground, with a total constructed area of Procedure is considered completed once final approximately 1,300.6 square meters (14,000 square feet). Each oor will document is received be 3 meters (9 feet, 10 inches) high and will be located on a land plot of No prior contact with officials approximately 929 square meters (10,000 square feet) that is 100% owned by BuildCo, and the warehouse is valued at 50 times income per capita. Cost required to complete each procedure (% of - Will have complete architectural and technical plans prepared by a warehouse value) licensed architect. If preparation of the plans requires such steps as Official costs only, no bribes obtaining further documentation or getting prior approvals from external Building quality control index (0-15) agencies, these are counted as procedures. - Will take 30 weeks to construct (excluding all delays due to administrative Sum of the scores of six component indices: and regulatory requirements). Quality of building regulations (0-2) The water and sewerage connections: Quality control before construction (0-1) - Will be 150 meters (492 feet) from the existing water source and sewer Quality control during construction (0-3) tap. If there is no water delivery infrastructure in the economy, a borehole Quality control after construction (0-3) will be dug. If there is no sewerage infrastructure, a septic tank in the smallest size available will be installed or built. Liability and insurance regimes (0-2) - Will have an average water use of 662 liters (175 gallons) a day and an Professional certifications (0-4) average wastewater ow of 568 liters (150 gallons) a day. Will have a peak water use of 1,325 liters (350 gallons) a day and a peak wastewater ow of 1,136 liters (300 gallons) a day. - Will have a constant level of water demand and wastewater ow throughout the year; will be 1 inch in diameter for the water connection and 4 inches in diameter for the sewerage connection. Standardized Warehouse Page 11   and 4 inches in diameter for the sewerage connection. Doing Business 2018 Ukraine Standardized Warehouse Estimated value of warehouse UAH 2,762,829.40 City Covered Kiev Europe & OECD high Indicator Ukraine Central Asia income Overall Best Performer Procedures (number) 10 16.0 12.5 7.00 (Denmark) Time (days) 76 168.3 154.6 27.5 (Korea, Rep.) Cost (% of warehouse value) 3.1 4.0 1.6 0.10 (5 Economies) Building quality control index (0-15) 8.0 11.4 11.4 15.00 (3 Economies) Figure – Dealing with Construction Permits in Ukraine and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 78.34: Belarus (Rank: 22) 76.85: Kyrgyz Republic (Rank: 31) 75.81: Ukraine (Rank: 35) 73.30: Kazakhstan (Rank: 52) 68.09: Regional Average (Europe & Central Asia) 51.98: Moldova (Rank: 165) Note: The ranking of economies on the ease of dealing with construction permits is determined by sorting their distance to frontier scores for dealing with construction permits. These scores are the simple average of the distance to frontier scores for each of the component indicators. Figure – Dealing with Construction Permits in Ukraine – Procedure, Time and Cost Time Cost 2.5 70 60 2 Cost (% of warehouse value) 50 Time (days) 1.5 40 30 1 20 0.5 10 0 0 1 *2 3 *4 5 6 *7 8 9 10 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Page 12   component indicators. Doing Business 2018 Ukraine Figure – Dealing with Construction Permits in Ukraine – Procedure, Time and Cost Time Cost 2.5 70 60 2 Cost (% of warehouse value) 50 Time (days) 1.5 40 30 1 20 0.5 10 0 0 1 *2 3 *4 5 6 *7 8 9 10 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a di erent procedure list for men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website (http://www.doingbusiness.org/methodology). For details on the procedures re ected here, see the summary below. Figure – Dealing with Construction Permits in Ukraine and comparator economies – Measure of Quality 14 13.0 13.0 12.0 12 11.0 11.4 10 Index score 8.0 8 6 4 2 0 Ukraine Belarus Kazakhstan Kyrgyz Republic Moldova Europe & Central Asia Details – Dealing with Construction Permits in Ukraine – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Request and obtain technical conditions from water and sewage 21 days UAH 2,895 authority Agency : Kyivvodokanal Joint Stock Company The application must include the plan, information on the expected volume of water and sewerage system use, and basic characteristics of the building. A fee estimated to UAH 2,895.00 might be paid by BuildCo. The calculation of such fees is based on estimated labor expenditures in accordance with the Rules on using the central sewage and water supply systems as approved by Order of Ministry of Housing and Communal Services of Ukraine No. 190, from June 27, 2008 as further amended. Page 13   Ukraine Belarus Kazakhstan Kyrgyz Republic Moldova Europe & Central Asia Doing Business 2018 Ukraine Details – Dealing with Construction Permits in Ukraine – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Request and obtain technical conditions from water and sewage 21 days UAH 2,895 authority Agency : Kyivvodokanal Joint Stock Company The application must include the plan, information on the expected volume of water and sewerage system use, and basic characteristics of the building. A fee estimated to UAH 2,895.00 might be paid by BuildCo. The calculation of such fees is based on estimated labor expenditures in accordance with the Rules on using the central sewage and water supply systems as approved by Order of Ministry of Housing and Communal Services of Ukraine No. 190, from June 27, 2008 as further amended. 2 Request and obtain technical terms and conditions on re safety from 19 days no charge the State Service of Ukraine for Emergency Situations Agency : State Service of Ukraine for Emergency Situations According to the Decree of the Ministry of Defense of Ukraine from November 14, 2013 № 771 "On approval of rules on providing technical conditions on re and technological security for engineering provisions of construction projects" the technical conditions for re and technological safety are provided by the State Service of Ukraine for Emergency Situations and its territorial bodies free of charge within 15 working days from the date of receipt of the application. 3 Request and obtain urban planning speci cations and requirements for 9 days no charge land plot development Agency : Chief Department of Town-Planning and Architecture of the Kiev City State Administration To obtain urban development speci cations and requirements, BuildCo submits the documents (to the Main Department of Architecture and Urban Planning of the Kyiv City State Administration) provided by the Law on Urban Planning, Order Ministry of Regional Development dated July 07, 2011. № 109 "On approval of the provision of urban conditions and restrictions land development, their structure and content" and the Cabinet of Ministers of Ukraine of December 07, 2005 № 1176. The architectural and technical objectives/conditions are part of the input data needed for designing the project. Resolution 489 of the Cabinet of Ministers "On Approval of the Procedure for Issuance of the Benchmark Data for the Designing of Town Planning Objects"dated May 20, 2009 develops provisions of Law of Ukraine No. 509-VI dated September 16, 2008. Under Regulation No. 489, the benchmark data include: • City planning conditions • Technical conditions • Design assignment The city planning conditions and restrictions are based on the respective city development rules (Rules of Development of Kiev City). These should not interfere with the engineering and architectural solutions of the project, unless only required by the need to protect the existing architectural, Page 14   historical or cultural environment. The form of the city planning conditions The city planning conditions and restrictions are based on the respective city Business 2018 Doing development Ukraine rules (Rules of Development of Kiev City). These should not interfere with the engineering and architectural solutions of the project, unless only required by the need to protect the existing architectural, historical or cultural environment. The form of the city planning conditions and restrictions has been approved by the same Regulation No. 489. In order to obtain the city planning conditions and restrictions, BuildCo should submit to the Main Department of the City-Planning, Architecture and Urban Environment Design of the Kiev City State Administration the application together with the notarized copies of its foundation documents and of the documents con rming its land title as well as pre-design documents, if any. The documents are checked for compliance with the city development rules (Rules of Development of Kiev City) within 10 days upon receipt of the documents. In case of the positive outcome of such a compliance check, the city planning conditions and restrictions are issued to the developer (BuildCo) within 2 weeks. If, however, the outcome is negative, the respective conclusion and recommendations on elimination on noncompliance is issued within a one-month term. If the developer's intention to construct the property does not comply with the city planning documentation, it can initiate the proceeding for the amendment of such documentation by ling a respective application with the Main Department of the City-Planning, Architecture and Urban Environment Design of the Kiev City State Administration which decides on the matter within 2 weeks in coordination with the relevant bodies (land resources, environmental and cultural protection authorities, sanitary and epidemiological stations) and submits its respective proposals to the Kiev City Council for the nal approval. The implementation of the relevant practice of issuing city planning conditions and restrictions to developers has already started in Kiev. Upon obtaining of the city planning conditions and restrictions, the developer should apply for the technical conditions. These include the data on engineering and utility servicing of the to-be constructed property (the warehouse), including the sources of supply, connection points as well as the basic engineering parameters of the property. The city planning conditions and restrictions as well as the technical conditions are valid until completion of construction, but for the term not less than 2 and not longer than 5 years and they can be extended at the request of the developer. The design assignment should comply with the city planning conditions and terms and re ne the benchmark for design, with account for the speci c features of the project. The design assignment is developed and approved by the developer and is provided to the general designer for the project. 4 Hire a technical supervision rm/engineer 1 day UAH 27,628 Agency : Licensed private rms BuildCo is required to hire a licensed rm to conduct technical supervision of construction throughout the construction period. The market price for technical supervision services is about 5-10% of construction costs. For a simple project the cost would be closer to 5%. 5 Submit declaration of the beginning of construction works 7 days no charge Agency : State Inspection of Architecture and Construction Control in Kiev The procedure is regulated by the Law of Ukraine "On regulation of urban development" of March 12, 2011. BuildCo must notify the State Inspection of Architecture and Construction Control in Kiev about the start of construction works before it is allowed to conduct any construction Page 15   activities. According to Article 36 of the Law, applicant shall obtain the right technical supervision services is about 5-10% of construction costs. For a Doing simple project Business the cost 2018 would be closer to 5%. Ukraine 5 Submit declaration of the beginning of construction works 7 days no charge Agency : State Inspection of Architecture and Construction Control in Kiev The procedure is regulated by the Law of Ukraine "On regulation of urban development" of March 12, 2011. BuildCo must notify the State Inspection of Architecture and Construction Control in Kiev about the start of construction works before it is allowed to conduct any construction activities. According to Article 36 of the Law, applicant shall obtain the right to perform construction work on objects related to I - III categories of complexity (including warehouse, which falls under the category II building), after the registration of the declaration of the beginning of construction work. In accordance with the Cabinet of Ministers of Ukraine "Some questions of preparatory and construction works" № 466 dated April 13, 2011, the declaration must be registered at the Inspectorate of State Architectural and Construction Control in Kiev within 5 working days from the date of submission. If inspection is not registered within the prescribed period, the applicant on the basis of "tacit consent" acquires the right to perform construction work on the 11th working day from the date when the declaration had to be registered or returned. 6 Request and connect to water and sewage services 4 days UAH 700 Agency : Kyivvodokanal Joint Stock Company The exact total price and other terms for connection the warehouse to water and sewage services should be stipulated in the agreement between the BuildCo as the customer and Kyivvodokanal Joint Stock Company as the supplier on the basis of project documentation elaborated for the purpose of connection. Therefore the cost provided above should be deemed as an average approximate cost. 7 Pay contribution to the city social and engineering-transport 1 day UAH 55,257 infrastructure Agency : Kiev City Administration Payment of the contribution to the city's social and engineering-transport infrastructure is regulated by Law of Ukraine "On town-planning regulation" and is clari ed in Kiev by newly adopted Decision of Kyiv City Council No.411/1415 from 15.11.2016. Accordingly, the contribution shall be paid prior to putting the building into operation. BuildCo shall submit a written application to Kyiv City Council with the following included: - document on approval of design documentation; - design documentation in part of technical-economic indexes and budget (if applicable); - conclusion of state expertise of budget (if applicable); - technical passport of warehouse; According to the Decision, the value of the contribution is 2% of the construction budget in 2017 and will be increased up to 4% of construction budget after 1 January 2018. 8 Prepare and submit declaration of readiness to operate the constructed 14 days no charge warehouse to the State Inspection of Architectural and Building Control Agency : State Inspectorate Page 16   budget after 1 January 2018. Doing Business 2018 Ukraine 8 Prepare and submit declaration of readiness to operate the constructed 14 days no charge warehouse to the State Inspection of Architectural and Building Control Agency : State Inspectorate The procedure for obtaining permission to start the operation of a newly constructed building is regulated by the Resolution of the Cabinet of Ministers of Ukraine dated April 13, 2011 № 461 on "The acceptance of the completed construction projects" and the Law of Ukraine "On regulation of urban development." The case study warehouse will be assigned to category II or III of complexity. According to the above regulations, and laws, the acceptance for operation of building within categories I-III is carried out by the registration at the State Inspection of Architecture and Construction Control and its territorial bodies. The builder has to le a declaration of readiness to put the newly constructed building into operation. Registration of the declaration of readiness is done free of charge within 10 working days from the date of application. The date of acceptance of a building in the I-III categories of complexity is the date of registration of the declaration of readiness. 9 Obtain a postal address for the newly constructed building 14 days no charge Agency : Chief Department of Town-Planning and Architecture of the Kiev City State Administration Once the construction is completed, BuildCo’s in-house engineers conduct a nal topographic survey of the completed structure and the land plot. After that, BuildCo must submit an application to the Kiev City Cadastre in order to obtain a postal address and must attach the nal topographic survey. The application shall include the following documents: - A copy of an extract from the Uni ed State Register of Legal Entities and individual entrepreneurs; - Duly approved design documentation of the construction; - Duly certi ed copy of the contribution in the creation of social and engineering and transport infrastructure of Kiev (if available). The Cadastre Service of the Department of City Planning and Architecture within 10 working days of receipt of the application processes the submitted materials and prepares a draft order of the Department of City Planning and Architecture on assigning an address to the object of new construction. The address is registered in the registry of addresses. 10 Register the warehouse with the Registration Service of the Chief 7 days UAH 239 Department of Justice in the City of Kyiv Agency : Registration Service of the Chief Department of Justice in the City of Kyiv The issuance of the ownership certi cate and the registration of ownership rights are done with the same authority, during one single procedure. E ective January 1, 2013, the procedure for property registration was changed due to amendments to the Law “On State Registration of Property Rights to Real Estate and Their Encumbrances” as of July 1st 2004 No. 1952- VI. By this reform, the registration of ownership rights to real estate is conducted according to the “Procedure on State Registration of Property Rights to Real Estate and Their Encumbrances” as approved by the Resolution of the Cabinet of Ministers of Ukraine as of June 22nd 2011, No. 703. Page 17   With this reform, the power to conduct the state registration of ownership Architecture on assigning an address to the object of new construction. The Doing address Businessis registered in the registry of addresses. 2018 Ukraine 10 Register the warehouse with the Registration Service of the Chief 7 days UAH 239 Department of Justice in the City of Kyiv Agency : Registration Service of the Chief Department of Justice in the City of Kyiv The issuance of the ownership certi cate and the registration of ownership rights are done with the same authority, during one single procedure. E ective January 1, 2013, the procedure for property registration was changed due to amendments to the Law “On State Registration of Property Rights to Real Estate and Their Encumbrances” as of July 1st 2004 No. 1952- VI. By this reform, the registration of ownership rights to real estate is conducted according to the “Procedure on State Registration of Property Rights to Real Estate and Their Encumbrances” as approved by the Resolution of the Cabinet of Ministers of Ukraine as of June 22nd 2011, No. 703. With this reform, the power to conduct the state registration of ownership rights to real estate and issue such title documents to real estate as the ownership certi cates has been transferred to the State Registration Service of Ukraine, which is coordinated by the Ministry of Justice of Ukraine. The registration shall be performed within the new State Register of Property Rights to Real Estate. Upon performance of the state registration of ownership rights to warehouse, the BuildCo shall obtain: (1) the certi cate con rming ownership rights to real property, and (2) extract from the State Register of Property Rights to Real Estate, both issued by Registration Service of the Chief Department of Justice in the city of Kyiv. The term for state registration of the BuildCo’s ownership rights to warehouse shall not exceed 14 business days as from the date of ling the application by BuildCo. In accordance with the amendments to the Decree of the Cabinet Ministers of Ukraine No. 7-93 as of 21 January 1993 "On State Duty", the state duty to be paid by BuildCo for state registration equals to 7 tax-exempt minimum incomes, which amounts to UAH 119. In addition, BuildCo must pay UAH 120 for the ownership certi cate. Takes place simultaneously with previous procedure. Details – Dealing with Construction Permits in Ukraine – Measure of Quality Answer Score Building quality control index (0-15) 8.0 Quality of building regulations index (0-2) 2.0 How accessible are building laws and regulations in your economy? (0-1) Available online; 1.0 Free of charge. Which requirements for obtaining a building permit are clearly speci ed in the building List of required 1.0 regulations or on any accessible website, brochure or pamphlet? (0-1) documents; Fees to be paid; Required preapprovals. Page 18   Quality control before construction index (0-1) 0.0 Takes place simultaneously with previous procedure. Doing Business 2018 Ukraine Details – Dealing with Construction Permits in Ukraine – Measure of Quality Answer Score Building quality control index (0-15) 8.0 Quality of building regulations index (0-2) 2.0 How accessible are building laws and regulations in your economy? (0-1) Available online; 1.0 Free of charge. Which requirements for obtaining a building permit are clearly speci ed in the building List of required 1.0 regulations or on any accessible website, brochure or pamphlet? (0-1) documents; Fees to be paid; Required preapprovals. Quality control before construction index (0-1) 0.0 Which third-party entities are required by law to verify that the building plans are in By law, there is 0.0 compliance with existing building regulations? (0-1) no need to verify plans compliance. Quality control during construction index (0-3) 2.0 What types of inspections (if any) are required by law to be carried out during Inspections by 1.0 construction? (0-2) in-house engineer; Inspections by external engineer or rm; Inspections at various phases. Do legally mandated inspections occur in practice during construction? (0-1) Mandatory 1.0 inspections are always done in practice. Quality control after construction index (0-3) 3.0 Is there a nal inspection required by law to verify that the building was built in Yes, in-house 2.0 accordance with the approved plans and regulations? (0-2) engineer submits report for nal inspection. Do legally mandated nal inspections occur in practice? (0-1) Final inspection 1.0 always occurs in practice. Liability and insurance regimes index (0-2) 1.0 Which parties (if any) are held liable by law for structural aws or problems in the Architect or 1.0 building once it is in use (Latent Defect Liability or Decennial Liability)? (0-1) engineer; Construction company. Page 19   Which parties (if any) are required by law to obtain an insurance policy to cover No party is 0.0 Liability Doing 2018 regimes and insurance Business index (0-2) Ukraine 1.0 Which parties (if any) are held liable by law for structural aws or problems in the Architect or 1.0 building once it is in use (Latent Defect Liability or Decennial Liability)? (0-1) engineer; Construction company. Which parties (if any) are required by law to obtain an insurance policy to cover No party is 0.0 possible structural aws or problems in the building once it is in use (Latent Defect required by law Liability Insurance or Decennial Insurance)? (0-1) to obtain insurance . Professional certi cations index (0-4) 0.0 What are the quali cation requirements for the professional responsible for verifying Minimum 0.0 that the architectural plans or drawings are in compliance with existing building number of years regulations? (0-2) of experience; Passing a certi cation exam. What are the quali cation requirements for the professional who supervises the Minimum 0.0 construction on the ground? (0-2) number of years of experience; Passing a certi cation exam. Getting Electricity This topic measures the procedures, time and cost required for a business to obtain a permanent electricity connection for a newly constructed warehouse. Additionally, the reliability of supply and transparency of tari s index measures reliability of supply, transparency of tari s and the price of electricity. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Procedures to obtain an electricity connection To make the data comparable across economies, several assumptions are (number) used. Submitting all relevant documents and obtaining The warehouse: all necessary clearances and permits - Is owned by a local entrepreneur and is used for storage of goods. Completing all required notifications and - Is located in the economy’s largest business city. For 11 economies the receiving all necessary inspections data are also collected for the second largest business city. Obtaining external installation works and possibly - Is located in an area where similar warehouses are typically located and is purchasing material for these works in an area with no physical constraints. For example, the property is not Concluding any necessary supply contract and near a railway. obtaining final supply - Is a new construction and is being connected to electricity for the rst time. Time required to complete each procedure - Has two stories with a total surface area of approximately 1,300.6 square (calendar days) meters (14,000 square feet). The plot of land on which it is built is 929 Is at least 1 calendar day square meters (10,000 square feet). Each procedure starts on a separate day Does not include time spent gathering The electricity connection: information - Is a permanent one with a three-phase, four-wire Y connection with a subscribed capacity of 140-kilo-volt-ampere (kVA) with a power factor of 1, Reflects the time spent in practice, with little when 1 kVA = 1 kilowatt (kW). follow-up and no prior contact with officials - Has a length of 150 meters. The connection is to either the low- or Page 20   Cost required to complete each procedure (% of medium-voltage distribution network and is either overhead or certi cation exam. Doing Business 2018 Ukraine Getting Electricity This topic measures the procedures, time and cost required for a business to obtain a permanent electricity connection for a newly constructed warehouse. Additionally, the reliability of supply and transparency of tari s index measures reliability of supply, transparency of tari s and the price of electricity. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Procedures to obtain an electricity connection To make the data comparable across economies, several assumptions are (number) used. Submitting all relevant documents and obtaining The warehouse: all necessary clearances and permits - Is owned by a local entrepreneur and is used for storage of goods. Completing all required notifications and - Is located in the economy’s largest business city. For 11 economies the receiving all necessary inspections data are also collected for the second largest business city. Obtaining external installation works and possibly - Is located in an area where similar warehouses are typically located and is purchasing material for these works in an area with no physical constraints. For example, the property is not Concluding any necessary supply contract and near a railway. obtaining final supply - Is a new construction and is being connected to electricity for the rst time. Time required to complete each procedure - Has two stories with a total surface area of approximately 1,300.6 square (calendar days) meters (14,000 square feet). The plot of land on which it is built is 929 Is at least 1 calendar day square meters (10,000 square feet). Each procedure starts on a separate day Does not include time spent gathering The electricity connection: information - Is a permanent one with a three-phase, four-wire Y connection with a subscribed capacity of 140-kilo-volt-ampere (kVA) with a power factor of 1, Reflects the time spent in practice, with little when 1 kVA = 1 kilowatt (kW). follow-up and no prior contact with officials - Has a length of 150 meters. The connection is to either the low- or Cost required to complete each procedure (% of medium-voltage distribution network and is either overhead or income per capita) underground, whichever is more common in the area where the warehouse is located and requires works that involve the crossing of a 10- Official costs only, no bribes meter road (such as by excavation or overhead lines) but are all carried out Value added tax excluded on public land. There is no crossing of other owners’ private property The reliability of supply and transparency of because the warehouse has access to a road. tari s index (0-8) - Does not require work to install the internal wiring of the warehouse. This has already been completed up to and including the customer’s service Duration and frequency of power outages (0–3) panel or switchboard and the meter base. Tools to monitor power outages (0–1) Tools to restore power supply (0–1) The monthly consumption: Regulatory monitoring of utilities’ performance - It is assumed that the warehouse operates 30 days a month from 9:00 (0–1) a.m. to 5:00 p.m. (8 hours a day), with equipment utilized at 80% of capacity Financial deterrents limiting outages (0–1) on average and that there are no electricity cuts (assumed for simplicity reasons) and the monthly energy consumption is 26,880 kilowatt-hours Transparency and accessibility of tariffs (0–1) (kWh); hourly consumption is 112 kWh. Price of electricity (cents per kilowatt-hour)* - If multiple electricity suppliers exist, the warehouse is served by the Price based on monthly bill for commercial cheapest supplier. warehouse in case study - Tari s e ective in March of the current year are used for calculation of the price of electricity for the warehouse. Although March has 31 days, for * N o t e : Doing Business m e a s u r e s t h e p r i c e o f calculation purposes only 30 days are used. electricity, but it is not included in the distance to frontier score nor the ranking on the ease of getting electricity. Page 21   Standardized Connection frontier score nor the ranking on the ease of getting electricity. Doing Business 2018 Ukraine Standardized Connection Price of electricity (US cents per kWh) 6.9 Name of utility JSC Kievenergo City Covered Kiev Europe & OECD high Indicator Ukraine Central Asia income Overall Best Performer Procedures (number) 5 5.4 4.7 2 (United Arab Emirates) Time (days) 281 113.7 79.1 10 (United Arab Emirates) Cost (% of income per capita) 525.2 344.3 63.0 0.00 (Japan) Reliability of supply and transparency of tariff 6 5.3 7.4 8.00 (28 Economies) index (0-8) Figure – Getting Electricity in Ukraine and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 86.04: Belarus (Rank: 25) 76.77: Kazakhstan (Rank: 70) 74.65: Moldova (Rank: 80) 70.35: Regional Average (Europe & Central Asia) 58.80: Ukraine (Rank: 128) 44.19: Kyrgyz Republic (Rank: 164) Note: The ranking of economies on the ease of getting electricity is determined by sorting their distance to frontier scores for getting electricity. These scores are the simple average of the distance to frontier scores for each of the component indicators. Figure – Getting Electricity in Ukraine – Procedure, Time and Cost Time Cost 500 250 400 Cost (% of income per capita) 200 Time (days) 300 150 200 100 50 100 Page 22   getting electricity. These scores are the simple average of the distance to frontier scores for each of the component indicators. Doing Business 2018 Ukraine Figure – Getting Electricity in Ukraine – Procedure, Time and Cost Time Cost 500 250 400 Cost (% of income per capita) 200 Time (days) 300 150 200 100 50 100 0 0 1 2 3 4 5 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a di erent procedure list for men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website (http://www.doingbusiness.org/methodology). For details on the procedures re ected here, see the summary below. Figure – Getting Electricity in Ukraine and comparator economies – Measure of Quality 9 8 8 8 7 7 6 6 Index score 5.3 5 4 3 2 1 0 0 Ukraine Belarus Kazakhstan Kyrgyz Republic Moldova Europe & Central Asia Details – Getting Electricity in Ukraine – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Submit application to Kievenergo and await technical conditions 30 calendar days UAH 0 Agency : Kievenergo The customer submits to Kievenergo an application for an electricity connection. Attached to the application the customer has to submit a number of documents: a letter with a company seal requesting the connection, bank details of the applicant, company statute, registration certi cate from the tax authorities, registration certi cate of the company, certi cate stating that the company is included in the national company registry, document stating the appointment of the CEO, property ownership certi cate and location plan of the property to be connected. After reviewing the application Kievenergo issues technical conditions. The technical Page 23   conditions concern only the external connection. In general they may include Ukraine Belarus Kazakhstan Kyrgyz Republic Moldova Europe & Central Asia Doing Business 2018 Ukraine Details – Getting Electricity in Ukraine – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Submit application to Kievenergo and await technical conditions 30 calendar days UAH 0 Agency : Kievenergo The customer submits to Kievenergo an application for an electricity connection. Attached to the application the customer has to submit a number of documents: a letter with a company seal requesting the connection, bank details of the applicant, company statute, registration certi cate from the tax authorities, registration certi cate of the company, certi cate stating that the company is included in the national company registry, document stating the appointment of the CEO, property ownership certi cate and location plan of the property to be connected. After reviewing the application Kievenergo issues technical conditions. The technical conditions concern only the external connection. In general they may include instructions for construction of a new substation; lining of high-voltage and low-voltage cables; in a case of reconstruction works - participation of the subscriber in the given actions. The application for technical conditions is submitted to the Department of Development (департамент перспективного развития) at Kievenergo which is then internally passed on to the Regional O ce in the particular area of Kiev where the warehouse is located and the regional o ce determines the point of connection. Technicians in the Regional o ces know the network and the substations in their area very well and usually do not need to visit the site for preparation of technical conditions. At this point the connection contract is concluded which outlines the responsibilities between the customer and the utility. 2 Await project design of external connection by private rm and its 90 calendar days UAH 41,900 approval Agency : Project design rm Once the technical conditions are issued the customer hires a licensed project design company to prepare the electrical project design of the external connection. As part of the project design the company prepares a topogeodesic plan (топогеодезическую съемку М 1:500). The topogeodosic plan is prepared to determine the technical aspects of running cable through the landscape. While the project is being developed the approval of the location of the substation connection to the network and/or the route of the cable 10 kV and 0.4 kV has to be obtained from Kievenergo and from the Main Architectural Planning Organization. At this point the customer should have an operation permit for the warehouse or Main Plan with the Landscape Allocation Plan. The approvals are obtained by the project design rm. Considering the load (140 kW) when receiving an approval of the project of external connection from Kievenergo it is required to attach the project of the internal wiring of the warehouse which at this point should be approved as part of the general architectural design of the warehouse. While the project is being developed the approval of the location of the substation connection to the network and/or the route of the cable 10 kV Page 24   concluded which outlines the responsibilities between the customer and the Doing utility. Business 2018 Ukraine 2 Await project design of external connection by private rm and its 90 calendar days UAH 41,900 approval Agency : Project design rm Once the technical conditions are issued the customer hires a licensed project design company to prepare the electrical project design of the external connection. As part of the project design the company prepares a topogeodesic plan (топогеодезическую съемку М 1:500). The topogeodosic plan is prepared to determine the technical aspects of running cable through the landscape. While the project is being developed the approval of the location of the substation connection to the network and/or the route of the cable 10 kV and 0.4 kV has to be obtained from Kievenergo and from the Main Architectural Planning Organization. At this point the customer should have an operation permit for the warehouse or Main Plan with the Landscape Allocation Plan. The approvals are obtained by the project design rm. Considering the load (140 kW) when receiving an approval of the project of external connection from Kievenergo it is required to attach the project of the internal wiring of the warehouse which at this point should be approved as part of the general architectural design of the warehouse. While the project is being developed the approval of the location of the substation connection to the network and/or the route of the cable 10 kV and 0.4 kV has to be obtained from Kievenergo and from the Main Architectural Planning Organization. At this point the customer should have an operation permit for the warehouse or Main Plan with the Landscape Allocation Plan. The approvals are obtained by the project design rm. If a substation is required before the project design is submitted for approval to Kievenergo it will have to be approved at the State Energy Inspectorate (Energonadzor/“Dergenergonaglyadu”). Considering the load (140 kW) when receiving an approval of the project of external connection from Kievenergo it is required to attach the project of the internal wiring of the warehouse which at this point should be approved as part of the general architectural design of the warehouse. 3 Await completion of external connection works 120 calendar days UAH 248,324 Agency : Kievenergo Once the external connection design is ready and approved, the customer needs to make the payments for the connection. Kievenergo will select a contractor on a tender base who will under utility's supervision obtain the necessary permits and carry out the works. 4 Conclude supply contract with Kievenergo (Energosbyt) 20 calendar days UAH 0 Agency : Energosbyt (Kievenergo) Before turning on the power, the customer has to rst conclude a supply contract with Kievenergo (Energosbyt). The supply contract can be concluded only after all the inspections are completed. The documents for the supply contract can be presented in the o ce or sent by mail. It is required to submit a number of documents regarding internal wiring including a Technical Report of the tests of the internal wiring Page 25   which should be completed after the internal wiring was nished by an Kievenergo will select a contractor on a tender base who will under utility's Business obtain Doing supervision 2018 the necessary permits and carry out the works. Ukraine 4 Conclude supply contract with Kievenergo (Energosbyt) 20 calendar days UAH 0 Agency : Energosbyt (Kievenergo) Before turning on the power, the customer has to rst conclude a supply contract with Kievenergo (Energosbyt). The supply contract can be concluded only after all the inspections are completed. The documents for the supply contract can be presented in the o ce or sent by mail. It is required to submit a number of documents regarding internal wiring including a Technical Report of the tests of the internal wiring which should be completed after the internal wiring was nished by an electrician. 5 Request and receive turn-on of power by Kievenergo 21 calendar days UAH 0 Agency : Kievenergo Once supply agreement is concluded, the customer can visit the dispatcher department of Kievenergo and request power turn on. The dispatcher department processes the order which permits it to turn o the 10 kV cable line, do the testing of the high voltage cable and nally turn on the electricity for the substation. Takes place simultaneously with previous procedure. Details – Getting Electricity in Ukraine – Measure of Quality Answer Reliability of supply and transparency of tari index (0-8) 6 Total duration and frequency of outages per customer a year (0-3) 2 System average interruption duration index (SAIDI) 3.9 System average interruption frequency index (SAIFI) 2.1 What is the minimum outage time (in minutes) that the utility considers for the calculation of SAIDI/SAIFI 3.0 Mechanisms for monitoring outages (0-1) 1 Does the distribution utility use automated tools to monitor outages? Yes Mechanisms for restoring service (0-1) 1 Does the distribution utility use automated tools to restore service? Yes Regulatory monitoring (0-1) 1 Does a regulator—that is, an entity separate from the utility—monitor the utility’s performance on Yes reliability of supply? Financial deterrents aimed at limiting outages (0-1) 0 Does the utility either pay compensation to customers or face nes by the regulator (or both) if outages No exceed a certain cap? Communication of tari s and tari changes (0-1) 1 Are e ective tari s available online? Yes Page 26   Takes place simultaneously with previous procedure. Doing Business 2018 Ukraine Details – Getting Electricity in Ukraine – Measure of Quality Answer Reliability of supply and transparency of tari index (0-8) 6 Total duration and frequency of outages per customer a year (0-3) 2 System average interruption duration index (SAIDI) 3.9 System average interruption frequency index (SAIFI) 2.1 What is the minimum outage time (in minutes) that the utility considers for the calculation of SAIDI/SAIFI 3.0 Mechanisms for monitoring outages (0-1) 1 Does the distribution utility use automated tools to monitor outages? Yes Mechanisms for restoring service (0-1) 1 Does the distribution utility use automated tools to restore service? Yes Regulatory monitoring (0-1) 1 Does a regulator—that is, an entity separate from the utility—monitor the utility’s performance on Yes reliability of supply? Financial deterrents aimed at limiting outages (0-1) 0 Does the utility either pay compensation to customers or face nes by the regulator (or both) if outages No exceed a certain cap? Communication of tari s and tari changes (0-1) 1 Are e ective tari s available online? Yes Link to the website, if available online http://kyivenergo.ua /ee-company/tari Are customers noti ed of a change in tari ahead of the billing cycle? Yes Note: If the duration and frequency of outages is 100 or less, the economy is eligible to score on the Reliability of supply and transparency of tari index. If the duration and frequency of outages is not available, or is over 100, the economy is not eligible to score on the index. If the minimum outage time considered for SAIDI/SAIFI is over 5 minutes, the economy is not eligible to score on the index. Registering Property This topic examines the steps, time and cost involved in registering property, assuming a standardized case of an entrepreneur who wants to purchase land and a building that is already registered and free of title dispute. In addition, the topic also measures the quality of the land administration system in each economy. The quality of land administration index has ve dimensions: reliability of infrastructure, transparency of information, geographic coverage, land dispute resolution, and equal access to property rights. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Page 27   If the minimum outage time considered for SAIDI/SAIFI is over 5 minutes, the economy is not eligible to score on the index. Doing Business 2018 Ukraine Registering Property This topic examines the steps, time and cost involved in registering property, assuming a standardized case of an entrepreneur who wants to purchase land and a building that is already registered and free of title dispute. In addition, the topic also measures the quality of the land administration system in each economy. The quality of land administration index has ve dimensions: reliability of infrastructure, transparency of information, geographic coverage, land dispute resolution, and equal access to property rights. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Procedures to legally transfer title on immovable To make the data comparable across economies, several assumptions property (number) about the parties to the transaction, the property and the procedures are used. Preregistration procedures (for example, checking for liens, notarizing sales agreement, The parties (buyer and seller): paying property transfer taxes) - Are limited liability companies (or the legal equivalent). Registration procedures in the economy's largest - Are located in the periurban area of the economy’s largest business city. business citya. For 11 economies the data are also collected for the second largest Postregistration procedures (for example, filling business city. title with municipality) - Are 100% domestically and privately owned. Time required to complete each procedure - Have 50 employees each, all of whom are nationals. (calendar days) - Perform general commercial activities. Does not include time spent gathering information The property (fully owned by the seller): - Has a value of 50 times income per capita, which equals the sale price. Each procedure starts on a separate day - though - Is fully owned by the seller. procedures that can be fully completed online - Has no mortgages attached and has been under the same ownership for are an exception to this rule the past 10 years. Procedure is considered completed once final - Is registered in the land registry or cadastre, or both, and is free of title document is received disputes. No prior contact with officials - Is located in a periurban commercial zone, and no rezoning is required. Cost required to complete each procedure (% of - Consists of land and a building. The land area is 557.4 square meters property value) (6,000 square feet). A two-story warehouse of 929 square meters (10,000 square feet) is located on the land. The warehouse is 10 years old, is in Official costs only (such as administrative fees, good condition, has no heating system and complies with all safety duties and taxes). standards, building codes and legal requirements. The property, Value Added Tax, Capital Gains Tax and illicit consisting of land and building, will be transferred in its entirety. payments are excluded - Will not be subject to renovations or additional construction following the Quality of land administration index (0-30) purchase. - Has no trees, natural water sources, natural reserves or historical Reliability of infrastructure index (0-8) monuments of any kind. Transparency of information index (0–6) - Will not be used for special purposes, and no special permits, such as for Geographic coverage index (0–8) residential use, industrial plants, waste storage or certain types of agricultural activities, are required. Land dispute resolution index (0–8) - Has no occupants, and no other party holds a legal interest in it. Equal access to property rights index (-2–0) Standard Property Transfer Property value UAH 2,762,829.40 City Covered Kiev Page 28   Europe & OECD high Doing Business 2018 Ukraine Standard Property Transfer Property value UAH 2,762,829.40 City Covered Kiev Europe & OECD high Indicator Ukraine Central Asia income Overall Best Performer Procedures (number) 7 5.3 4.6 1.00 (4 Economies) Time (days) 17 20.4 22.3 1.00 (3 Economies) Cost (% of property value) 1.8 2.5 4.2 0.00 (5 Economies) Quality of the land administration index (0-30) 14.5 19.8 22.7 29.00 (Singapore) Figure – Registering Property in Ukraine and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 92.19: Belarus (Rank: 5) 90.21: Kyrgyz Republic (Rank: 8) 84.61: Kazakhstan (Rank: 17) 82.60: Moldova (Rank: 20) 76.02: Regional Average (Europe & Central Asia) 69.61: Ukraine (Rank: 64) Note: The ranking of economies on the ease of registering property is determined by sorting their distance to frontier scores for registering property. These scores are the simple average of the distance to frontier scores for each of the component indicators. Figure – Registering Property in Ukraine – Procedure, Time and Cost Time Cost 1.8 16 1.6 14 1.4 Cost (% of property value) 12 1.2 Time (days) 10 1 8 0.8 6 0.6 4 0.4 2 0.2 0 0 1 2 3 4 5 *6 *7 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Page 29   Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a di erent procedure list for registering property. These scores are the simple average of the distance to frontier scores for each of the component indicators. Doing Business 2018 Ukraine Figure – Registering Property in Ukraine – Procedure, Time and Cost Time Cost 1.8 16 1.6 14 1.4 Cost (% of property value) 12 1.2 Time (days) 10 1 8 0.8 6 0.6 4 0.4 2 0.2 0 0 1 2 3 4 5 *6 *7 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a di erent procedure list for men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website (http://www.doingbusiness.org/methodology). For details on the procedures re ected here, see the summary below. Figure – Registering Property in Ukraine and comparator economies – Measure of Quality 30 25 23.5 24.0 22.0 19.8 20 Index score 17.0 14.5 15 10 5 0 Ukraine Belarus Kazakhstan Kyrgyz Republic Moldova Europe & Central Asia Details – Registering Property in Ukraine – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Assess the price of the land 3-5 days UAH 1,000 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 experts certi ed by the State Property Fund of Ukraine. Such experts have access to evaluation software and record the price at the State Property Fund. Expert evaluation of the price of immovable property is required for tax assessment purposes. Page 30   2 Obtain the extract from the State Center of the Land Cadastre 10 days UAH 68 Ukraine Belarus Kazakhstan Kyrgyz Republic Moldova Europe & Central Asia Doing Business 2018 Ukraine Details – Registering Property in Ukraine – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Assess the price of the land 3-5 days UAH 1,000 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 experts certi ed by the State Property Fund of Ukraine. Such experts have access to evaluation software and record the price at the State Property Fund. Expert evaluation of the price of immovable property is required for tax assessment purposes. 2 Obtain the extract from the State Center of the Land Cadastre 10 days UAH 68 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 con rming payment of fee for issuance of the extract; - document con rming powers of the person to request and obtain the extract. In addition to the above documents, the Seller shall present original document con rming ownership rights to the land plot (e.g. a state act of ownership rights) and personal identi cation 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 Center of the Land Cadastre can be also provided through Administration Service Center. In this case an applicant may order the document (excerpt from the State Land Cadastre about a land plot) online at http://map.land.gov.ua, but will have to visit the Administration Service Center in order to receive the document. 3 Notary registers ownership rights for seller in the new State Register of Less than a day UAH 1500 notary fee Property Rights to Immovable Property (online procedure) UAH 120 for the Agency : Notary initial registration of the land in the new From January 01, 2013, a new State Register of Property Rights to Immovable registry of ownership Property (“Register of Property Rights”) has been launched. Unlike the State rights Land Cadastre, which automatically absorbed information about all existing UAH 120 for the 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 initial registration of Page 31   immovable property which have been registered before January 01, 2013. For the warehouse about a land plot) online at http://map.land.gov.ua, but will have to visit the Doing Administration Business 2018 Service Center in order to receive the document. Ukraine 3 Notary registers ownership rights for seller in the new State Register of Less than a day UAH 1500 notary fee Property Rights to Immovable Property (online procedure) UAH 120 for the Agency : Notary initial registration of the land in the new From January 01, 2013, a new State Register of Property Rights to Immovable registry of ownership Property (“Register of Property Rights”) has been launched. Unlike the State rights Land Cadastre, which automatically absorbed information about all existing UAH 120 for the 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 initial registration of immovable property which have been registered before January 01, 2013. For the warehouse 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. 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. However, the procedure is still widely implemented in practice. Procedures 3-7 are being completed simultaneously at the notary's o ce. 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 con rming 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 con rming Seller’s ownership rights to the Property. " 4 Obtain the extract from the State Register of Encumbrances over Less than a day UAH 34 movable property (online procedure) 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. 5 Check for encumbrances at the State Registry of Property Rights on Less than a days UAH 51 for the Immovable Property (online; Seller's LLC Agency : Notary simultaneous with UAH 51 for checking procedures 6 & 7) against Notary searches the former State Register of Ownership Rights to encumbrances on Immovable Property, State Register of Mortgages, State Register of land Immovable Property Alienation Bans and State Register of Encumbrances UAH 51 for checking over Movable Property. against From January 01, 2013, three state registers containing information about encumbrances on encumbrances on immovable property: warehouse (1) State Register of Mortgages; (2) State Register of Immovable Property Alienation Bans; and Page 32   (3) State Register of Encumbrances over Movable Property (in respect of tax the notaries can obtain this information online. Doing Business 2018 Ukraine 5 Check for encumbrances at the State Registry of Property Rights on Less than a days UAH 51 for the Immovable Property (online; Seller's LLC Agency : Notary simultaneous with UAH 51 for checking procedures 6 & 7) against Notary searches the former State Register of Ownership Rights to encumbrances on Immovable Property, State Register of Mortgages, State Register of land Immovable Property Alienation Bans and State Register of Encumbrances UAH 51 for checking over Movable Property. against From January 01, 2013, three state registers containing information about encumbrances on encumbrances on immovable property: warehouse (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 rst-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. 6 Prepare and notarize the sale agreement (land and building) 1 day Notary fee for the Agency : Notary (simultaneous with land (paid by the procedures 5 & 7) buyer): UAH 1,500 The sale purchase agreement of the building is notarized by a private or Notary fee for the public notary. Notary’s fees are agreed among parties. There could be one warehouse (paid by single agreement underpinning both sale of building and sale of land or be the buyer): UAH two separate agreements: the sale of building (warehouse) and the sale of 1,500 land parcel. Parties can prepare the sale agreements by themselves before notarization, but usually the notary prefers to use his standard proforma. 1% of the value of the land 1% of the value of State Duty (fee) is paid to the notary and equals 1% of the transactional value the warehouse of the building. The buyer of the building will also pay a special assessment in 1% of the value of the amount of 1% of building’s transactional value to the State Pension Fund. the warehouse (NOT The buyer can make the payment to the State Pension Fund prior to the THE LAND, only the notarization of building sale agreement or provide the notary with the building) for the money to make such payment. pension fund contribution. 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 Uni ed 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)) Page 33   day on which the Property sale and purchase agreement is executed, prior Doing to the execution Business 2018 of the agreement. Ukraine 6 Prepare and notarize the sale agreement (land and building) 1 day Notary fee for the Agency : Notary (simultaneous with land (paid by the procedures 5 & 7) buyer): UAH 1,500 The sale purchase agreement of the building is notarized by a private or Notary fee for the public notary. Notary’s fees are agreed among parties. There could be one warehouse (paid by single agreement underpinning both sale of building and sale of land or be the buyer): UAH two separate agreements: the sale of building (warehouse) and the sale of 1,500 land parcel. Parties can prepare the sale agreements by themselves before notarization, but usually the notary prefers to use his standard proforma. 1% of the value of the land 1% of the value of State Duty (fee) is paid to the notary and equals 1% of the transactional value the warehouse of the building. The buyer of the building will also pay a special assessment in 1% of the value of the amount of 1% of building’s transactional value to the State Pension Fund. the warehouse (NOT The buyer can make the payment to the State Pension Fund prior to the THE LAND, only the notarization of building sale agreement or provide the notary with the building) for the money to make such payment. pension fund contribution. 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 Uni ed 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 certi es agreement, makes inscription on the State Certi cate on Land Ownership as to the transference of title over parcel of land to new owner, registers information as to the transaction in the Uni ed State Registry of Transactions and issues an extract from this registry on above mentioned transaction. 7 Notary registers Buyer's ownership rights on the property in the Register Less than a day Notary fee: UAH of Property Rights (online procedure; 1,500 Agency : Notary simultaneous with UAH 730.8 procedures 5 & 6) administrative fee From January 01, 2013, the registration of ownership rights to immovable for the land property (other than newly constructed building/newly allotted land plot in ownership transfer some other cases) is performed by notaries attesting the sale and purchase (adminsbor) agreement (Articles 3.5, 9 of the Law of Ukraine “On State Registration of Property Rights to Immovable Property and Their Encumbrances”). UAH 730.8 administrative fee for the warehouse Following notarial attestation of the Property sale and purchase agreement, ownership transfer the notary shall register Buyer’s ownership rights to the Property in the (adminsbor) Register of Property Rights. The procedure of registration is governed by UAH 120 (land) Articles 15-24 of the Law of Ukraine “On State Registration of Property Rights registration fee Page 34   to Immovable Property and Their Encumbrances” No 1952-IV of July 01, 2004, UAH 120 Registry of Transactions and issues an extract from this registry on above Businesstransaction. Doing mentioned 2018 Ukraine 7 Notary registers Buyer's ownership rights on the property in the Register Less than a day Notary fee: UAH of Property Rights (online procedure; 1,500 Agency : Notary simultaneous with UAH 730.8 procedures 5 & 6) administrative fee From January 01, 2013, the registration of ownership rights to immovable for the land property (other than newly constructed building/newly allotted land plot in ownership transfer some other cases) is performed by notaries attesting the sale and purchase (adminsbor) agreement (Articles 3.5, 9 of the Law of Ukraine “On State Registration of Property Rights to Immovable Property and Their Encumbrances”). UAH 730.8 administrative fee for the warehouse Following notarial attestation of the Property sale and purchase agreement, ownership transfer the notary shall register Buyer’s ownership rights to the Property in the (adminsbor) Register of Property Rights. The procedure of registration is governed by UAH 120 (land) Articles 15-24 of the Law of Ukraine “On State Registration of Property Rights registration fee to Immovable Property and Their Encumbrances” No 1952-IV of July 01, 2004, UAH 120 as restated and amended, and the Resolution of Cabinet of Ministers of (warehouse) Ukraine No 703 dated June 22, 2011, as amended (“CMU Resolution No 703”). registration fee. 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. Takes place simultaneously with previous procedure. Details – Registering Property in Ukraine – Measure of Quality Answer Score Quality of the land administration index (0-30) 14.5 Reliability of infrastructure index (0-8) 5.0 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 Computer/Scann 1.0 —in a paper format or in a computerized format (scanned or fully digital)? ed Is there an electronic database for checking for encumbrances (liens, mortgages, Yes 1.0 restrictions and the like)? Institution in charge of the plans showing legal boundaries in the largest business city: State Enterprise "Centre for the State Land Cadastre" In what format are the majority of maps of land plots kept in the largest business city— Computer/Fully 2.0 in a paper format or in a computerized format (scanned or fully digital)? digital Is there an electronic database for recording boundaries, checking plans and providing Yes 1.0 cadastral information (geographic information system)? Page 35   Is the information recorded by the immovable property registration agency and the Separate 0.0 Takes place simultaneously with previous procedure. Doing Business 2018 Ukraine Details – Registering Property in Ukraine – Measure of Quality Answer Score Quality of the land administration index (0-30) 14.5 Reliability of infrastructure index (0-8) 5.0 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 Computer/Scann 1.0 —in a paper format or in a computerized format (scanned or fully digital)? ed Is there an electronic database for checking for encumbrances (liens, mortgages, Yes 1.0 restrictions and the like)? Institution in charge of the plans showing legal boundaries in the largest business city: State Enterprise "Centre for the State Land Cadastre" In what format are the majority of maps of land plots kept in the largest business city— Computer/Fully 2.0 in a paper format or in a computerized format (scanned or fully digital)? digital Is there an electronic database for recording boundaries, checking plans and providing Yes 1.0 cadastral information (geographic information system)? Is the information recorded by the immovable property registration agency and the Separate 0.0 cadastral or mapping agency kept in a single database, in di erent but linked databases databases or in separate databases? Do the immovable property registration agency and cadastral or mapping agency use No 0.0 the same identi cation number for properties? Transparency of information index (0–6) 3.0 Who is able to obtain information on land ownership at the agency in charge of Only 0.0 immovable property registration in the largest business city? intermediaries (notaries, lawyers, etc.) Is the list of documents that are required to complete any type of property transaction Yes, online 0.5 made publicly available–and if so, how? Link for online access: http://zakon3.rad a.gov.ua/laws/sh ow/1127-2015- %D0%BF/paran2 3#n23 Is the applicable fee schedule for any property transaction at the agency in charge of Yes, on public 0.5 immovable property registration in the largest business city made publicly available– boards and if so, how? Link for online access: Page 36   immovable property registration in the largest business city made publicly available– boards and if Doing so, how? 2018 Business Ukraine Link for online access: Does the agency in charge of immovable property registration commit to delivering a Yes, online 0.5 legally binding document that proves property ownership within a speci c time frame– and if so, how does it communicate the service standard? Link for online access: http://ddr.minjus t.gov.ua/uk/4424 bbf47abcd8a3a6f 65ca7a0256435/ normatyvnoprav ova_baza/ Is there a speci c and separate mechanism for ling complaints about a problem that No 0.0 occurred at the agency in charge of immovable property registration? Contact information: Are there publicly available o cial statistics tracking the number of transactions at the No 0.0 immovable property registration agency? 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 0.5 by anyone Is the applicable fee schedule for accessing maps of land plots made publicly available Yes, on public 0.5 —and if so, how? boards Link for online access: Does the cadastral or mapping agency commit to delivering an updated map within a Yes, on public 0.5 speci c time frame—and if so, how does it communicate the service standard? boards Link for online access: http://zakon2.rad a.gov.ua/laws/sh ow/3613-17/ Is there a speci c and separate mechanism for ling complaints about a problem that No 0.0 occurred at the cadastral or mapping agency? Contact information: Geographic coverage index (0–8) 0.0 Are all privately held land plots in the economy formally registered at the immovable No 0.0 property registry? Are all privately held land plots in the largest business city formally registered at the No 0.0 immovable property registry? 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 Yes 1.5 property registry to make them opposable to third parties? Page 37   Is the system of immovable property registration subject to a state or private Yes 0.5 Land dispute Doing 2018 index resolution Business (0–8) Ukraine 6.5 Does the law require that all property sale transactions be registered at the immovable Yes 1.5 property registry to make them opposable to third parties? Is the system of immovable property registration subject to a state or private Yes 0.5 guarantee? Is there a speci c compensation mechanism to cover for losses incurred by parties who No 0.0 engaged in good faith in a property transaction based on erroneous information certi ed by the immovable property registry? Does the legal system require a control of legality of the documents necessary for a Yes 0.5 property transaction (e.g., checking the compliance of contracts with requirements of the law)? If yes, who is responsible for checking the legality of the documents? Notary. Does the legal system require veri cation of the identity of the parties to a property Yes 0.5 transaction? 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 The Commercial property worth 50 times gross national income (GNI) per capita and located in the (Economic) Court largest business city, what court would be in charge of the case in the rst instance? of Kyiv How long does it take on average to obtain a decision from the rst-instance court for Less than a year 3.0 such a case (without appeal)? Are there any statistics on the number of land disputes in the rst instance? Yes 0.5 Number of land disputes in the largest business city in 2015: 3,324 cases out of 85 769 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 Getting Credit This topic explores two sets of issues—the strength of credit reporting systems and the e ectiveness of collateral and bankruptcy laws in facilitating lending. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Strength of legal rights index (0–12) Doing Business assesses the sharing of credit information and the legal rights of borrowers and lenders with respect to secured transactions Rights of borrowers and lenders through through 2 sets of indicators. The depth of credit information index collateral laws (0-10) measures rules and practices a ecting the coverage, scope and Protection of secured creditors’ rights through accessibility of credit information available through a credit registry or a bankruptcy laws (0-2) credit bureau. The strength of legal rights index measures the degree to Depth of credit information index (0–8) which collateral and bankruptcy laws protect the rights of borrowers and lenders and thus facilitate lending. For each economy it is first determined Scope and accessibility of credit information Page 38   whether a unitary secured transactions system exists. Then two case distributed by credit bureaus and credit Do married men and married women have equal ownership rights to property? Yes 0.0 Doing Business 2018 Ukraine Getting Credit This topic explores two sets of issues—the strength of credit reporting systems and the e ectiveness of collateral and bankruptcy laws in facilitating lending. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Strength of legal rights index (0–12) Doing Business assesses the sharing of credit information and the legal rights of borrowers and lenders with respect to secured transactions Rights of borrowers and lenders through through 2 sets of indicators. The depth of credit information index collateral laws (0-10) measures rules and practices a ecting the coverage, scope and Protection of secured creditors’ rights through accessibility of credit information available through a credit registry or a bankruptcy laws (0-2) credit bureau. The strength of legal rights index measures the degree to Depth of credit information index (0–8) which collateral and bankruptcy laws protect the rights of borrowers and lenders and thus facilitate lending. For each economy it is first determined Scope and accessibility of credit information whether a unitary secured transactions system exists. Then two case distributed by credit bureaus and credit scenarios, case A and case B, are used to determine how a nonpossessory registries (0-8) security interest is created, publicized and enforced according to the law. Credit bureau coverage (% of adults) Special emphasis is given to how the collateral registry operates (if Number of individuals and firms listed in largest registration of security interests is possible). The case scenarios involve a credit bureau as a percentage of adult population secured borrower, company ABC, and a secured lender, BizBank. Credit registry coverage (% of adults) In some economies the legal framework for secured transactions will allow Number of individuals and firms listed in credit only case A or case B (not both) to apply. Both cases examine the same set registry as a percentage of adult population of legal provisions relating to the use of movable collateral. Several assumptions about the secured borrower (ABC) and lender (BizBank) are used: - ABC is a domestic limited liability company (or its legal equivalent). - ABC has up to 50 employees. - ABC has its headquarters and only base of operations in the economy’s largest business city. For 11 economies the data are also collected for the second largest business city. - Both ABC and BizBank are 100% domestically owned. The case scenarios also involve assumptions. In case A, as collateral for the loan, ABC grants BizBank a nonpossessory security interest in one category of movable assets, for example, its machinery or its inventory. ABC wants to keep both possession and ownership of the collateral. In economies where the law does not allow nonpossessory security interests in movable property, ABC and BizBank use a fiduciary transfer-of-title arrangement (or a similar substitute for nonpossessory security interests). In case B, ABC grants BizBank a business charge, enterprise charge, floating charge or any charge that gives BizBank a security interest over ABC’s combined movable assets (or as much of ABC’s movable assets as possible). ABC keeps ownership and possession of the assets. Europe & OECD high Indicator Ukraine Central Asia income Overall Best Performer Strength of legal rights index (0-12) 8 6.6 6.0 12.00 (4 Economies) Depth of credit information index (0-8) 7 6.3 6.6 8.00 (34 Economies) Page 39   Credit registry coverage (% of adults) 0.0 22.2 18.3 100.00 (3 Economies) possible). ABC keeps ownership and possession of the assets. Doing Business 2018 Ukraine Europe & OECD high Indicator Ukraine Central Asia income Overall Best Performer Strength of legal rights index (0-12) 8 6.6 6.0 12.00 (4 Economies) Depth of credit information index (0-8) 7 6.3 6.6 8.00 (34 Economies) Credit registry coverage (% of adults) 0.0 22.2 18.3 100.00 (3 Economies) Credit bureau coverage (% of adults) 47.3 42.8 63.7 100.00 (23 Economies) Figure – Getting Credit in Ukraine and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 75.00: Kyrgyz Republic (Rank: 29) 75.00: Ukraine (Rank: 29) 70.00: Moldova (Rank: 42) 64.58: Regional Average (Europe & Central Asia) 55.00: Kazakhstan (Rank: 77) 50.00: Belarus (Rank: 90) Note: The ranking of economies on the ease of getting credit is determined by sorting their distance to frontier scores for getting credit. These scores are the distance to frontier score for the sum of the strength of legal rights index and the depth of credit information index. Figure – Legal Rights in Ukraine and comparator economies 10 9 9 8 8 8 7 6.6 Index score 6 5 4 4 3 3 2 1 0 Ukraine Belarus Kazakhstan Kyrgyz Republic Moldova Europe & Central Asia Details – Legal Rights in Ukraine Strength of legal rights index (0-12) 8 Does an integrated or uni ed legal framework for secured transactions that extends to the creation, publicity and No enforcement of functional equivalents to security interests in movable assets exist in the economy? Does the law allow businesses to grant a non possessory security right in a single category of movable assets, without Yes requiring a speci c description of collateral? Page 40   Ukraine Belarus Kazakhstan Kyrgyz Republic Moldova Europe & Central Asia Doing Business 2018 Ukraine Details – Legal Rights in Ukraine Strength of legal rights index (0-12) 8 Does an integrated or uni ed legal framework for secured transactions that extends to the creation, publicity and No enforcement of functional equivalents to security interests in movable assets exist in the economy? Does the law allow businesses to grant a non possessory security right in a single category of movable assets, without Yes requiring a speci c description of collateral? Does the law allow businesses to grant a non possessory security right in substantially all of its assets, without requiring Yes a speci c description of collateral? May a security right extend to future or after-acquired assets, and does it extend automatically to the products, proceeds Yes or replacements of the original assets? Is a general description of debts and obligations permitted in collateral agreements; can all types of debts and Yes obligations be secured between parties; and can the collateral agreement include a maximum amount for which the assets are encumbered? Is a collateral registry in operation for both incorporated and non-incorporated entities, that is uni ed geographically Yes and by asset type, with an electronic database indexed by debtor's name? Does a notice-based collateral registry exist in which all functional equivalents can be registered? No Does a modern collateral registry exist in which registrations, amendments, cancellations and searches can be No performed online by any interested third party? Are secured creditors paid rst (i.e. before tax claims and employee claims) when a debtor defaults outside an insolvency Yes procedure? Are secured creditors paid rst (i.e. before tax claims and employee claims) when a business is liquidated? Yes Are secured creditors subject to an automatic stay on enforcement when a debtor enters a court-supervised No reorganization procedure? Does the law protect secured creditors’ rights by providing clear grounds for relief from the stay and/or sets a time limit for it? Does the law allow parties to agree on out of court enforcement at the time a security interest is created? Does the law Yes allow the secured creditor to sell the collateral through public auction or private tender, as well as, for the secured creditor to keep the asset in satisfaction of the debt? Figure – Credit Information in Ukraine and comparator economies 8 7 7 7 6.3 6 6 6 Index score 4 2 0 Ukraine Belarus Kazakhstan Kyrgyz Republic Moldova Europe & Central Asia Details – Credit Information in Ukraine Page 41   0 Ukraine Doing Business 2018 Belarus Ukraine Kazakhstan Kyrgyz Republic Moldova Europe & Central Asia Details – Credit Information in Ukraine Credit Credit Depth of credit information index (0-8) bureau registry Score Are data on both firms and individuals distributed? Yes No 1 Are both positive and negative credit data distributed? Yes No 1 Are data from retailers or utility companies - in addition to data from banks and financial institutions - No No 0 distributed? Are at least 2 years of historical data distributed? (Credit bureaus and registries that distribute more Yes No 1 than 10 years of negative data or erase data on defaults as soon as they are repaid obtain a score of 0 for this component.) Are data on loan amounts below 1% of income per capita distributed? Yes No 1 By law, do borrowers have the right to access their data in the credit bureau or credit registry? Yes No 1 Can banks and financial institutions access borrowers’ credit information online (for example, Yes No 1 through an online platform, a system-to-system connection or both)? Are bureau or registry credit scores offered as a value-added service to help banks and financial Yes No 1 institutions assess the creditworthiness of borrowers? Score ("yes" to either public bureau or private registry) 7 Note: An economy receives a score of 1 if there is a "yes" to either bureau or registry. If the credit bureau or registry is not operational or covers less than 5% of the adult population, the total score on the depth of credit information index is 0. Coverage Credit bureau Credit registry Number of individuals 14,600,000 0 Number of firms 130,000 0 Total 14,730,000 0 Percentage of adult population 47.3 0.0 Protecting Minority Investors This topic measures the strength of minority shareholder protections against misuse of corporate assets by directors for their personal gain as well as shareholder rights, governance safeguards and corporate transparency requirements that reduce the risk of abuse. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Extent of disclosure index (0–10): Review and To make the data comparable across economies, a case study uses several approval requirements for related-party assumptions about the business and the transaction. transactions; Disclosure requirements for related-party transactions The business (Buyer): Extent of director liability index (0–10): Ability of - Is a publicly traded corporation listed on the economy’s most important minority shareholders to sue and hold interested stock exchange. If the number of publicly traded companies listed on that directors liable for prejudicial related-party exchange is less than 10, or if there is no stock exchange in the economy, it is assumed that Buyer is a large private company with multiple Page 42   transactions; Available legal remedies (damages, Percentage of adult population 47.3 0.0 Doing Business 2018 Ukraine Protecting Minority Investors This topic measures the strength of minority shareholder protections against misuse of corporate assets by directors for their personal gain as well as shareholder rights, governance safeguards and corporate transparency requirements that reduce the risk of abuse. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Extent of disclosure index (0–10): Review and To make the data comparable across economies, a case study uses several approval requirements for related-party assumptions about the business and the transaction. transactions; Disclosure requirements for related-party transactions The business (Buyer): Extent of director liability index (0–10): Ability of - Is a publicly traded corporation listed on the economy’s most important minority shareholders to sue and hold interested stock exchange. If the number of publicly traded companies listed on that directors liable for prejudicial related-party exchange is less than 10, or if there is no stock exchange in the economy, it transactions; Available legal remedies (damages, is assumed that Buyer is a large private company with multiple disgorgement of profits, fines, imprisonment, shareholders. rescission of the transaction) - Has a board of directors and a chief executive o cer (CEO) who may legally act on behalf of Buyer where permitted, even if this is not speci cally Ease of shareholder suits index (0–10): Access to required by law. internal corporate documents; Evidence - Has a supervisory board (applicable to economies with a two-tier board obtainable during trial and allocation of legal system) on which 60% of the shareholder-elected members have been expenses appointed by Mr. James, who is Buyer’s controlling shareholder and a Extent of conflict of interest regulation index member of Buyer’s board of directors. (0–10): Simple average of the extent of disclosure, - Has not adopted any bylaws or articles of association that di er from extent of director liability and ease of default minimum standards and does not follow any nonmandatory codes, shareholder indices principles, recommendations or guidelines relating to corporate Extent of shareholder rights index (0-10): governance. Shareholders’ rights and role in major corporate - Is a manufacturing company with its own distribution network. decisions Extent of ownership and control index (0-10): The transaction involves the following details: Governance safeguards protecting shareholders - Mr. James owns 60% of Buyer and elected two directors to Buyer’s ve- from undue board control and entrenchment member board. Extent of corporate transparency index (0-10): - Mr. James also owns 90% of Seller, a company that operates a chain of Corporate transparency on ownership stakes, retail hardware stores. Seller recently closed a large number of its stores. compensation, audits and financial prospects - Mr. James proposes that Buyer purchase Seller’s unused eet of trucks to expand Buyer’s distribution of its food products, a proposal to which Buyer Extent of shareholder governance index (0–10): agrees. The price is equal to 10% of Buyer’s assets and is higher than the Simple average of the extent of shareholders market value. rights, extent of ownership and control and - The proposed transaction is part of the company’s ordinary course of extent of corporate transparency indices business and is not outside the authority of the company. Strength of minority investor protection index - Buyer enters into the transaction. All required approvals are obtained, (0–10): Simple average of the extent of conflict of and all required disclosures made (that is, the transaction is not interest regulation and extent of shareholder fraudulent). governance indices - The transaction causes damages to Buyer. Shareholders sue Mr. James and the other parties that approved the transaction. Europe & OECD high Indicator Ukraine Central Asia income Overall Best Performer Extent of conflict of interest regulation index (0- 5 6.3 6.4 9.3 (New Zealand) 10) Extent of shareholder governance index (0-10) 6 6.6 6.4 Page 43   9.00 (Kazakhstan) and the other parties that approved the transaction. Doing Business 2018 Ukraine Europe & OECD high Indicator Ukraine Central Asia income Overall Best Performer Extent of conflict of interest regulation index (0- 5 6.3 6.4 9.3 (New Zealand) 10) Extent of shareholder governance index (0-10) 6 6.6 6.4 9.00 (Kazakhstan) Figure – Protecting Minority Investors in Ukraine and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 85.00: Kazakhstan (Rank: 1) 66.67: Moldova (Rank: 33) 65.00: Belarus (Rank: 40) 64.31: Regional Average (Europe & Central Asia) 61.67: Kyrgyz Republic (Rank: 51) 55.00: Ukraine (Rank: 81) Note: The ranking of economies on the strength of minority investor protections is determined by sorting their distance to frontier scores for protecting minority investors. These scores are the simple average of the distance to frontier scores for the extent of con ict of interest regulation index and the extent of shareholder governance index. Figure – Protecting Minority Investors in Ukraine and comparator economies – Measure of Quality the Ukraine 8 2 7 5 5 6 Belarus 8 2 7 8 6 8 Kazakhstan 9 6 9 8 10 9 Kyrgyz Republic 7 5 7 6 4 8 Moldova 8 4 7 5 8 8 OECD high income 7.3 5.6 6.5 5.2 6.3 7.4 Europe & Central Asia 7.4 4.6 7 5.5 7.2 6.8 0 10 20 30 40 50 60 Sub-Indicator Score Extent of corporate transparency index (0­10) Extent of director liability index (0­10) Extent of disclosure index (0­10) Extent of ownership and control index (0­10) Extent of shareholder rights index (0­10) Ease of shareholder suits index (0­10) Details – Protecting Minority Investors in Ukraine – Measure of Quality Answer Score Page 44   Extent of ownership and control index (0­10) Extent of shareholder rights index (0­10) Ease of shareholder suits index (0­10) Doing Business 2018 Ukraine Details – Protecting Minority Investors in Ukraine – Measure of Quality Answer Score Extent of con ict of interest regulation index (0-10) 5 Extent of disclosure index (0-10) 7 Which corporate body is legally su cient to approve the Buyer-Seller transaction? (0-3) Board of 2.0 directors excluding interested members Must an external body review the terms of the transaction before it takes place? (0-1) Yes 1.0 Must Mr. James disclose his con ict of interest to the board of directors? (0-2) Full disclosure of 2.0 all material facts Must Buyer disclose the transaction in published periodic lings (annual reports)? (0-2) Disclosure on 1.0 the transaction only Must Buyer immediately disclose the transaction to the public and/or shareholders? (0- Disclosure on 1.0 2) the transaction only Extent of director liability index (0-10) 2 Can shareholders representing 10% of Buyer's share capital sue directly or derivatively Yes 1.0 for the damage the transaction caused to Buyer? (0-1) Can shareholders hold the interested director liable for the damage the transaction Not liable 0.0 caused to Buyer? (0-2) Can shareholders hold the other directors liable for the damage the transaction caused Liable if negligent 1.0 to Buyer (0-2) Must Mr. James pay damages for the harm caused to Buyer upon a successful claim by No 0.0 shareholders? (0-1) Must Mr. James repay pro ts made from the transaction upon a successful claim by No 0.0 shareholders? (0-1) Is Mr. James disquali ed or ned and imprisoned upon a successful claim by No 0.0 shareholders? (0-1) Can a court void the transaction upon a successful claim by shareholders? (0-2) Only in case of 0.0 fraud or bad faith Ease of shareholder suits index (0-10) 6 Before suing can shareholders representing 10% of Buyer's share capital inspect the No 0.0 transaction documents? (0-1) Can the plainti obtain any documents from the defendant and witnesses at trial? (0-3) Any relevant 3.0 document Can the plainti request categories of documents from the defendant without No 0.0 Page 45   Before suing can shareholders representing 10% of Buyer's share capital inspect the No 0.0 transaction Doing 2018 (0-1) documents? Business Ukraine Can the plainti obtain any documents from the defendant and witnesses at trial? (0-3) Any relevant 3.0 document Can the plainti request categories of documents from the defendant without No 0.0 identifying speci c ones? (0-1) Can the plainti directly question the defendant and witnesses at trial? (0-2) Yes 2.0 Is the level of proof required for civil suits lower than that of criminal cases? (0-1) No 0.0 Can shareholder plainti s recover their legal expenses from the company? (0-2) Yes if successful 1.0 Extent of shareholder governance index (0-10) 6 Extent of shareholder rights index (0-10) 5 Does the sale of 51% of Buyer's assets require shareholder approval? Yes 1.0 Can shareholders representing 10% of Buyer's share capital call for a meeting of Yes 1.0 shareholders? Must Buyer obtain its shareholders’ approval every time it issues new shares? Yes 1.0 Do shareholders automatically receive preemption rights every time Buyer issues new No 0.0 shares? Must shareholders approve the election and dismissal of the external auditor? No 0.0 Are changes to the rights of a class of shares only possible if the holders of the a ected Yes 1.0 shares approve? Assuming that Buyer is a limited company, does the sale of 51% of its assets require No 0.0 member approval? Assuming that Buyer is a limited company, can members representing 10% call for a No 0.0 meeting of members? Assuming that Buyer is a limited company, must all members consent to add a new No 0.0 member? Assuming that Buyer is a limited company, must a member rst o er to sell their Yes 1.0 interest to the existing members before they can sell to non-members? Extent of ownership and control index (0-10) 5 Is it forbidden to appoint the same individual as CEO and chair of the board of Yes 1.0 directors? Must the board of directors include independent and nonexecutive board members? Yes 1.0 Can shareholders remove members of the board of directors without cause before the Yes 1.0 end of their term? Must the board of directors include a separate audit committee exclusively comprising No 0.0 board members? Must a potential acquirer make a tender o er to all shareholders upon acquiring 50% Yes 1.0 of Buyer? Must Buyer pay declared dividends within a maximum period set by law? Yes 1.0 Page 46   Must a potential acquirer make a tender o er to all shareholders upon acquiring 50% Yes 1.0 of Buyer? Doing Business 2018 Ukraine Must Buyer pay declared dividends within a maximum period set by law? Yes 1.0 Is a subsidiary prohibited from acquiring shares issued by its parent company? No 0.0 Assuming that Buyer is a limited company, must Buyer have a mechanism to resolve No 0.0 disagreements among members? Assuming that Buyer is a limited company, must a potential acquirer make a tender No 0.0 o er to all shareholders upon acquiring 50% of Buyer? Assuming that Buyer is a limited company, must Buyer distribute pro ts within a No 0.0 maximum period set by law? Extent of corporate transparency index (0-10) 8 Must Buyer disclose direct and indirect bene cial ownership stakes representing 5%? Yes 1.0 Must Buyer disclose information about board members’ primary employment and Yes 1.0 directorships in other companies? Must Buyer disclose the compensation of individual managers? Yes 1.0 Must a detailed notice of general meeting be sent 21 days before the meeting? Yes 1.0 Can shareholders representing 5% of Buyer’s share capital put items on the general Yes 1.0 meeting agenda? Must Buyer's annual nancial statements be audited by an external auditor? Yes 1.0 Must Buyer disclose its audit reports to the public? Yes 1.0 Assuming that Buyer is a limited company, must members meet at least once a year? No 0.0 Assuming that Buyer is a limited company, can members representing 5% put items on Yes 1.0 the meeting agenda? Assuming that Buyer is a limited company, must Buyer's annual nancial statements be No 0.0 audited by an external auditor? Paying Taxes This topic records the taxes and mandatory contributions that a medium-size company must pay or withhold in a given year, as well as measures the administrative burden in paying taxes and contributions. The most recent round of data collection for the project was completed on June 30, 2017 covering for the Paying Taxes indicator calendar year 2016 (January 1, 2016 – December 31, 2016). Last year (Doing Business 2017) the scope of data collection was expanded to better understand the overall tax environment in an economy. The questionnaire was expanded to include new questions on post- ling processes: VAT refund and tax audit. The data shows where post ling processes and practices work e ciently and what drives the di erences in the overall tax compliance cost across economies. The new section covers both the legal framework and the administrative burden on businesses to comply with post ling processes. See the methodology for more information. What the indicators measure Case study assumptions Tax payments for a manufacturing company in Using a case scenario, Doing Business records taxes and mandatory 2016 (number per year adjusted for electronic and contributions a medium size company must pay in a year, and measures joint ling and payment) the administrative burden of paying taxes, contributions and dealing with Page 47   post ling processes. Information is also compiled on frequency of ling Assuming that Buyer is a limited company, must Buyer's annual nancial statements be No 0.0 audited by an external auditor? Doing Business 2018 Ukraine Paying Taxes This topic records the taxes and mandatory contributions that a medium-size company must pay or withhold in a given year, as well as measures the administrative burden in paying taxes and contributions. The most recent round of data collection for the project was completed on June 30, 2017 covering for the Paying Taxes indicator calendar year 2016 (January 1, 2016 – December 31, 2016). Last year (Doing Business 2017) the scope of data collection was expanded to better understand the overall tax environment in an economy. The questionnaire was expanded to include new questions on post- ling processes: VAT refund and tax audit. The data shows where post ling processes and practices work e ciently and what drives the di erences in the overall tax compliance cost across economies. The new section covers both the legal framework and the administrative burden on businesses to comply with post ling processes. See the methodology for more information. What the indicators measure Case study assumptions Tax payments for a manufacturing company in Using a case scenario, Doing Business records taxes and mandatory 2016 (number per year adjusted for electronic and contributions a medium size company must pay in a year, and measures joint ling and payment) the administrative burden of paying taxes, contributions and dealing with post ling processes. Information is also compiled on frequency of ling Total number of taxes and contributions paid, and payments, time taken to comply with tax laws, time taken to comply including consumption taxes (value added tax, with the requirements of post ling processes and time waiting. sales tax or goods and service tax) Method and frequency of filing and payment To make data comparable across economies, several assumptions are used: Time required to comply with 3 major taxes - TaxpayerCo is a medium-size business that started operations on January (hours per year) 1, 2015. It produces ceramic flowerpots and sells them at retail. All taxes Collecting information, computing tax payable and contributions recorded are paid in the second year of operation Completing tax return, filing with agencies (calendar year 2016). Taxes and mandatory contributions are measured at all levels of government. Arranging payment or withholding Preparing separate tax accounting books, if The VAT refund process: required - In June 2016, TaxpayerCo. makes a large capital purchase: the value of the Total tax and contribution rate (% of pro t before machine is 65 times income per capita of the economy. Sales are equally all taxes) spread per month (1,050 times income per capita divided by 12) and cost of goods sold are equally expensed per month (875 times income per Profit or corporate income tax capita divided by 12). The machinery seller is registered for VAT and excess Social contributions, labor taxes paid by input VAT incurred in June will be fully recovered after four consecutive employer months if the VAT rate is the same for inputs, sales and the machine and Property and property transfer taxes the tax reporting period is every month. Input VAT will exceed Output VAT Dividend, capital gains, financial transactions in June 2016. taxes The corporate income tax audit process: Waste collection, vehicle, road and other taxes - An error in calculation of income tax liability (for example, use of incorrect tax depreciation rates, or incorrectly treating an expense as tax deductible) Post ling Index leads to an incorrect income tax return and a corporate income Time to comply with a VAT refund tax underpayment. TaxpayerCo. discovered the error and voluntarily Time to receive a VAT refund noti ed the tax authority. The value of the underpaid income tax liability is Time to comply with a corporate income tax audit 5% of the corporate income tax liability due. TaxpayerCo. submits corrected information after the deadline for submitting the annual tax Time to complete a corporate income tax audit return, but within the tax assessment period. Europe & OECD high Indicator Ukraine Central Asia income Overall Best Performer Payments (number per year) 5 16.5 10.9 3 (Hong Kong SAR, China) Page 48   return, but within the tax assessment period. Doing Business 2018 Ukraine Europe & OECD high Indicator Ukraine Central Asia income Overall Best Performer Payments (number per year) 5 16.5 10.9 3 (Hong Kong SAR, China) Time (hours per year) 327.5 218.4 160.7 55 (Luxembourg) Total tax and contribution rate (% of profit) 37.8 33.1 40.1 18.47% (32 Economies) Postfiling index (0-100) 85.95 65.20 83.45 99.38 (Estonia) Figure – Paying Taxes in Ukraine and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 84.55: Moldova (Rank: 32) 80.77: Ukraine (Rank: 43) 79.47: Kazakhstan (Rank: 50) 75.78: Regional Average (Europe & Central Asia) 70.81: Belarus (Rank: 96) 56.55: Kyrgyz Republic (Rank: 151) Note: The ranking of economies on the ease of paying taxes is determined by sorting their distance to frontier scores on the ease of paying taxes. These scores are the simple average of the distance to frontier scores for each of the four component indicators – number of tax payments. time, total tax rate and post ling index – with a threshold and a nonlinear transformation applied to one of the component indicators, the total tax rate. The nonlinear distance to frontier for the total tax rate is equal to the distance to frontier for the total tax rate to the power of 0.8. The threshold is de ned as the total tax rate at the 15th percentile of the overall distribution for all years included in the analysis up to and including Doing Business 2015, which is 26.1%. All economies with a total tax rate below this threshold receive the same score as the economy at the threshold. Figure – Paying Taxes in Ukraine and comparator economies – Measure of Quality 100 90.79 90 85.95 80 70 65.20 Index score 60 50.00 48.85 50 37.38 40 30 20 10 0 Ukraine Belarus Kazakhstan Kyrgyz Republic Moldova Europe & Central Asia Details – Paying Taxes in Ukraine Tax or mandatory Payments Notes on Time Statutory Total tax and contribution Notes contribution (number) Payments (hours) tax rate Tax base rate (% of profit) on TTR Unified Social 1 online 92 22% gross 24.82 Page 49   Contribution salaries Doing Business 2018 Ukraine Figure – Paying Taxes in Ukraine and comparator economies – Measure of Quality 100 90.79 90 85.95 80 70 65.20 Index score 60 50.00 48.85 50 37.38 40 30 20 10 0 Ukraine Belarus Kazakhstan Kyrgyz Republic Moldova Europe & Central Asia Details – Paying Taxes in Ukraine Tax or mandatory Payments Notes on Time Statutory Total tax and contribution Notes contribution (number) Payments (hours) tax rate Tax base rate (% of profit) on TTR Unified Social 1 online 92 22% gross 24.82 Contribution salaries Corporate income 1 online 37 18% taxable 11.86 tax profit Land tax 1 online various land area 1.10 rates and value Environmental 1 online various ton of waste 0.01 taxes rates Military 0 online and 1.5% personal 0.00 withheld contribution jointly income Value added tax 1 online 199 20% value added 0.00 not (VAT) included Totals 5 327.5 37.8 Details – Paying Taxes in Ukraine – Tax by Type Taxes by type Answer Profit tax (% of profit) 11.9 Labor tax and contributions (% of profit) 24.8 Other taxes (% of profit) 1.1 Details – Paying Taxes in Ukraine – Measure of Quality Answer Score Post ling index (0-100) 85.95 Page 50   Doing Business 2018 Ukraine Answer Score Post ling index (0-100) 85.95 VAT refunds Does VAT exist? Yes Does a VAT refund process exist per the case study? Yes Restrictions on VAT refund process None Percentage of cases exposed to a VAT audit (%) 75% - 100% Is there a mandatory carry forward period? No Time to comply with VAT refund (hours) 16.0 68 Time to obtain a VAT refund (weeks) 14.3 78.55 Corporate income tax audits Does corporate income tax exist? Yes Percentage of cases exposed to a corporate income tax audit (%) 0% - 24% Time to comply with a corporate income tax audit (hours) 3.0 97.25 Time to complete a corporate income tax audit (weeks) No tax audit per 100 case study scenario Notes: Names of taxes have been standardized. For instance income tax, pro t tax, tax on company's income are all named corporate income tax in this table. The hours for VAT include all the VAT and sales taxes applicable. The hours for Social Security include all the hours for labor taxes and mandatory contributions in general. The post ling index is the average of the scores on time to comply with VAT refund, time to obtain a VAT refund, time to comply with a corporate income tax audit and time to complete a corporate income tax audit. N/A = Not applicable. Trading across Borders Doing Business records the time and cost associated with the logistical process of exporting and importing goods. Doing Business measures the time and cost (excluding tari s) associated with three sets of procedures—documentary compliance, border compliance and domestic transport—within the overall process of exporting or importing a shipment of goods. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. Given the importance of trade digitalization, in Doing Business 2018, the Trading across Borders questionnaire included research questions on the availability and status of implementation of Electronic Data Interchange (EDI) and Single Window (SW) systems. With this information, Doing Business built a comprehensive dataset on the adoption and level of sophistication of electronic platforms in 190 economies. These data are not used to compute the distance to frontier score or ranking of the ease of doing business. The new dataset on EDI and SW systems is available here. What the indicators measure Case study assumptions Documentary compliance To make the data comparable across economies, a few assumptions are made about the traded goods and the transactions: Obtaining, preparing and submitting documents during transport, clearance, inspections and port Time: Time is measured in hours, and 1 day is 24 hours (for example, 22 or border handling in origin economy Page 51   days are recorded as 22×24=528 hours). If customs clearance takes 7.5 Obtaining, preparing and submitting documents a corporate income tax audit and time to complete a corporate income tax audit. N/A = Not applicable. Doing Business 2018 Ukraine Trading across Borders Doing Business records the time and cost associated with the logistical process of exporting and importing goods. Doing Business measures the time and cost (excluding tari s) associated with three sets of procedures—documentary compliance, border compliance and domestic transport—within the overall process of exporting or importing a shipment of goods. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. Given the importance of trade digitalization, in Doing Business 2018, the Trading across Borders questionnaire included research questions on the availability and status of implementation of Electronic Data Interchange (EDI) and Single Window (SW) systems. With this information, Doing Business built a comprehensive dataset on the adoption and level of sophistication of electronic platforms in 190 economies. These data are not used to compute the distance to frontier score or ranking of the ease of doing business. The new dataset on EDI and SW systems is available here. What the indicators measure Case study assumptions Documentary compliance To make the data comparable across economies, a few assumptions are made about the traded goods and the transactions: Obtaining, preparing and submitting documents during transport, clearance, inspections and port Time: Time is measured in hours, and 1 day is 24 hours (for example, 22 or border handling in origin economy days are recorded as 22×24=528 hours). If customs clearance takes 7.5 Obtaining, preparing and submitting documents hours, the data are recorded as is. Alternatively, suppose documents are required by destination economy and any transit submitted to a customs agency at 8:00a.m., are processed overnight and economies can be picked up at 8:00a.m. the next day. The time for customs clearance Covers all documents required by law and in would be recorded as 24 hours because the actual procedure took 24 practice, including electronic submissions of hours. information Border compliance Cost: Insurance cost and informal payments for which no receipt is issued are excluded from the costs recorded. Costs are reported in U.S. dollars. Customs clearance and inspections Contributors are asked to convert local currency into U.S. dollars based on Inspections by other agencies (if applied to more the exchange rate prevailing on the day they answer the questionnaire. than 20% of shipments) Contributors are private sector experts in international trade logistics and Handling and inspections that take place at the are informed about exchange rates. economy’s port or border Assumptions of the case study: - For all 190 economies covered by Doing Domestic transport Business, it is assumed a shipment is in a warehouse in the largest Loading or unloading of the shipment at the business city of the exporting economy and travels to a warehouse in the warehouse or port/border largest business city of the importing economy. - It is assumed each Transport between warehouse and port/border economy imports 15 metric tons of containerized auto parts (HS 8708) from its natural import partner—the economy from which it imports the Traffic delays and road police checks while shipment is en route largest value (price times quantity) of auto parts. It is assumed each economy exports the product of its comparative advantage (de ned by the largest export value) to its natural export partner—the economy that is the largest purchaser of this product. Shipment value is assumed to be $50,000. - The mode of transport is the one most widely used for the chosen export or import product and the trading partner, as is the seaport, or land border crossing. - All electronic information submissions requested by any government agency in connection with the shipment are considered to be documents obtained, prepared and submitted during the export or import process. - A port or border is a place (seaport, airport or land border crossing) where merchandise can enter or leave an economy. - Relevant government agencies include customs, port authorities, road police, border guards, standardization agencies, ministries or departments of agriculture or industry, national security agencies and any other government authorities. Page 52   of agriculture or industry, national security agencies and any other Doing Business 2018 Ukraine government authorities. Europe & OECD high Indicator Ukraine Central Asia income Overall Best Performer Time to export: Border compliance (hours) 26 28.0 12.7 0 (17 Economies) Cost to export: Border compliance (USD) 75 191.4 149.9 0.00 (19 Economies) Time to export: Documentary compliance 96 27.9 2.4 1.0 (25 Economies) (hours) Cost to export: Documentary compliance (USD) 292 113.8 35.4 0.00 (19 Economies) Time to import: Border compliance (hours) 72 25.9 8.7 0.00 (21 Economies) Cost to import: Border compliance (USD) 100 185.1 111.6 0.00 (27 Economies) Time to import: Documentary compliance 168 27.3 3.5 1.0 (30 Economies) (hours) Cost to import: Documentary compliance (USD) 212 94.7 25.6 0.00 (30 Economies) Figure – Trading across Borders in Ukraine and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 93.71: Belarus (Rank: 30) 92.32: Moldova (Rank: 35) 83.96: Regional Average (Europe & Central Asia) 73.34: Kyrgyz Republic (Rank: 84) 64.26: Ukraine (Rank: 119) 63.19: Kazakhstan (Rank: 123) Note: The ranking of economies on the ease of trading across borders is determined by sorting their distance to frontier scores for trading across borders. These scores are the simple average of the distance to frontier scores for the time and cost for documentary compliance and border compliance to export and import (domestic transport is not used for calculating the ranking). Figure – Trading across Borders in Ukraine – Time and Cost Time Cost 180 168 350 160 292 300 140 250 120 212 Time (hours) Cost (USD) 96 200 100 80 72 150 60 100 75 100 40 26 50 20 0 0 Export - Border Compliance Export - Documentary Compliance Import - Border Compliance Import - Documentary CompliancePage 53   Doing Business 2018 Ukraine Figure – Trading across Borders in Ukraine – Time and Cost Time Cost 180 168 350 160 292 300 140 250 120 212 Time (hours) Cost (USD) 96 200 100 80 72 150 60 100 75 100 40 26 50 20 0 0 Export - Border Compliance Export - Documentary Compliance Import - Border Compliance Import - Documentary Compliance Details – Trading across Borders in Ukraine Characteristics Export Import Product HS 72 : Iron and steel HS 8708: Parts and accessories of motor vehicles Trade partner Russian Federation Russian Federation Border Sumy Region Border Crossing Kharkiv Oblast border crossing (Goptovka-Nehoteevka) Distance (km) 335 335 Domestic transport time (hours) 5 5 Domestic transport cost (USD) 300 300 Details – Trading across Borders in Ukraine – Components of Border Compliance Time to Complete Associated Costs (hours) (USD) Export: Clearance and inspections required by customs authorities 24.0 75.0 Export: Clearance and inspections required by agencies other than customs 0.0 0.0 Export: Port or border handling 2.0 0.0 Import: Clearance and inspections required by customs authorities 48.0 100.0 Import: Clearance and inspections required by agencies other than customs 0.0 0.0 Import: Port or border handling 24.0 0.0 Details – Trading across Borders in Ukraine – Trade Documents Export Import CMR waybill Contract (sale-purchase) Certificate of origin Page 54   Verification from the State Service of Export Control of Ukraine on the auto-parts Domestic transport cost (USD) 300 300 Doing Business 2018 Ukraine Details – Trading across Borders in Ukraine – Components of Border Compliance Time to Complete Associated Costs (hours) (USD) Export: Clearance and inspections required by customs authorities 24.0 75.0 Export: Clearance and inspections required by agencies other than customs 0.0 0.0 Export: Port or border handling 2.0 0.0 Import: Clearance and inspections required by customs authorities 48.0 100.0 Import: Clearance and inspections required by agencies other than customs 0.0 0.0 Import: Port or border handling 24.0 0.0 Details – Trading across Borders in Ukraine – Trade Documents Export Import CMR waybill Contract (sale-purchase) Certificate of origin Verification from the State Service of Export Control of Ukraine on the auto-parts Certificate of quality Compliance certificate on auto parts (Specification of the product) Sanitary and Epidemiological clearance Transit document (T1) Contract VED Specification of the product Commercial invoice Packing list Export declaration with bank stamp Import declaration Packing list Preliminary import declaration Act of loading Enforcing Contracts The enforcing contracts indicator measures the time and cost for resolving a commercial dispute through a local rst-instance court, and the quality of judicial processes index, evaluating whether each economy has adopted a series of good practices that promote quality and e ciency in the court system. The most recent round of data collection was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Time required to enforce a contract through the The dispute in the case study involves the breach of a sales contract courts (calendar days) between 2 domestic businesses. The case study assumes that the court hears an expert on the quality of the goods in dispute. This distinguishes Time to file and serve the case the case from simple debt enforcement. Time for trial and to obtain the judgment To make the data comparable across economies, Doing Business uses Time to enforce the judgment several assumptions about the case: Cost required to enforce a contract through the (Seller - The dispute concerns a lawful transaction between two businessesPage 55   courts (% of claim) and Buyer), both located in the economy’s largest business city. For 11 Act of loading Doing Business 2018 Ukraine Enforcing Contracts The enforcing contracts indicator measures the time and cost for resolving a commercial dispute through a local rst-instance court, and the quality of judicial processes index, evaluating whether each economy has adopted a series of good practices that promote quality and e ciency in the court system. The most recent round of data collection was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Time required to enforce a contract through the The dispute in the case study involves the breach of a sales contract courts (calendar days) between 2 domestic businesses. The case study assumes that the court hears an expert on the quality of the goods in dispute. This distinguishes Time to file and serve the case the case from simple debt enforcement. Time for trial and to obtain the judgment To make the data comparable across economies, Doing Business uses Time to enforce the judgment several assumptions about the case: Cost required to enforce a contract through the - The dispute concerns a lawful transaction between two businesses (Seller courts (% of claim) and Buyer), both located in the economy’s largest business city. For 11 Attorney fees economies the data are also collected for the second largest business city. - The buyer orders custom-made goods, then fails to pay. Court fees - The value of the dispute is 200% of the income per capita or the Enforcement fees equivalent in local currency of USD 5,000, whichever is greater. Quality of judicial processes index (0-18) - The seller sues the buyer before the court with jurisdiction over commercial cases worth 200% of income per capita or $5,000. Court structure and proceedings (-1-5) - The seller requests a pretrial attachment to secure the claim. Case management (0-6) - The dispute on the quality of the goods requires an expert opinion. Court automation (0-4) - The judge decides in favor of the seller; there is no appeal. Alternative dispute resolution (0-3) - The seller enforces the judgment through a public sale of the buyer’s movable assets. Standardized Case Claim value UAH 91,041.00 Court name Kiev Commercial Court City Covered Kiev Europe & OECD high Indicator Ukraine Central Asia income Overall Best Performer Time (days) 378 489.9 577.8 164.00 (Singapore) Cost (% of claim value) 46.3 26.2 21.5 9.00 (Iceland) Quality of judicial processes index (0-18) 9.0 10.0 11.0 15.50 (Australia) Figure – Enforcing Contracts in Ukraine and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 77.55: Kazakhstan (Rank: 6) 70.36: Belarus (Rank: 24) 65.38: Regional Average (Europe & Central Asia) Page 56   of judicial processes Quality Business Doing index (0-18) 2018 Ukraine 9.0 10.0 11.0 15.50 (Australia) Figure – Enforcing Contracts in Ukraine and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 77.55: Kazakhstan (Rank: 6) 70.36: Belarus (Rank: 24) 65.38: Regional Average (Europe & Central Asia) 60.87: Moldova (Rank: 62) 58.96: Ukraine (Rank: 82) 48.57: Kyrgyz Republic (Rank: 139) Note: The ranking of economies on the ease of enforcing contracts is determined by sorting their distance to frontier scores for enforcing contracts. These scores are the simple average of the distance to frontier scores for each of the component indicators. Figure – Enforcing Contracts in Ukraine – Time and Cost Time Cost 700 47.0 46.3 50 585 577.8 600 Cost (% of claim value) 40 489.9 500 410 Time (days) 28.6 378 400 26.2 370 30 23.4 22.0 21.5 300 275 20 200 10 100 0 0 Belarus Europe & Kazakhstan Kyrgyz Republic Moldova OECD high income Ukraine Central Asia Figure – Enforcing Contracts in Ukraine and comparator economies – Measure of Quality the Ukraine 1.5 2 2 3.5 Belarus 2.5 2.5 1 3 Kazakhstan 3 4 2 5 Kyrgyz Republic 1 0 3 Moldova 2.5 3 2 2 OECD high income 2.5 2.9 2 3.6 Europe & Central Asia 2.1 2.9 1.5 3.5 0 2 4 6 8 10 12 14 Page 57   16 Belarus Europe & Kazakhstan Kyrgyz Republic Moldova OECD high income Ukraine Central Asia Doing Business 2018 Ukraine Figure – Enforcing Contracts in Ukraine and comparator economies – Measure of Quality the Ukraine 1.5 2 2 3.5 Belarus 2.5 2.5 1 3 Kazakhstan 3 4 2 5 Kyrgyz Republic 1 0 3 Moldova 2.5 3 2 2 OECD high income 2.5 2.9 2 3.6 Europe & Central Asia 2.1 2.9 1.5 3.5 0 2 4 6 8 10 12 14 16 Sub-Indicator Score Alternative dispute resolution (0­3) Case management (0­6) Court automation (0­4) Court structure and proceedings (­1­5) Details – Enforcing Contracts in Ukraine Indicator Time (days) 378 Filing and service 48 Trial and judgment 150 Enforcement of judgment 180 Cost (% of claim value) 46.3 Attorney fees 25 Court fees 9.9 Enforcement fees 11.4 Quality of judicial processes index (0-18) 9.0 Court structure and proceedings (-1-5) 3.5 Case management (0-6) 2.0 Court automation (0-4) 2.0 Alternative dispute resolution (0-3) 1.5 Details – Enforcing Contracts in Ukraine – Measure of Quality Page 58   Alternative dispute resolution (0-3) 1.5 Doing Business 2018 Ukraine Details – Enforcing Contracts in Ukraine – Measure of Quality Answer Score Quality of judicial processes index (0-18) 9.0 Court structure and proceedings (-1-5) 3.5 1. Is there a court or division of a court dedicated solely to hearing commercial cases? Yes 1.5 2. Small claims court 0.0 2.a. Is there a small claims court or a fast-track procedure for small claims? No 2.b. If yes, is self-representation allowed? n.a. 3. Is pretrial attachment available? Yes 1.0 4. Are new cases assigned randomly to judges? Yes, automatic 1.0 5. Does a woman's testimony carry the same evidentiary weight in court as a man's? Yes 0.0 Case management (0-6) 2.0 1. Time standards 1.0 1.a. Are there laws setting overall time standards for key court events in a civil case? Yes 1.b. If yes, are the time standards set for at least three court events? Yes 1.c. Are these time standards respected in more than 50% of cases? Yes 2. Adjournments 0.0 2.a. Does the law regulate the maximum number of adjournments that can be No granted? 2.b. Are adjournments limited to unforeseen and exceptional circumstances? No 2.c. If rules on adjournments exist, are they respected in more than 50% of cases? n.a. 3. Can two of the following four reports be generated about the competent court: (i) Yes 1.0 time to disposition report; (ii) clearance rate report; (iii) age of pending cases report; and (iv) single case progress report? 4. Is a pretrial conference among the case management techniques used before the No 0.0 competent court? 5. Are there any electronic case management tools in place within the competent court No 0.0 for use by judges? 6. Are there any electronic case management tools in place within the competent court No 0.0 for use by lawyers? Court automation (0-4) 2.0 1. Can the initial complaint be led electronically through a dedicated platform within No 0.0 the competent court? 2. Is it possible to carry out service of process electronically for claims led before the No 0.0 competent court? Page 59   1. Can the initial complaint be led electronically through a dedicated platform within No 0.0 Businesscourt? the competent Doing 2018 Ukraine 2. Is it possible to carry out service of process electronically for claims led before the No 0.0 competent court? 3. Can court fees be paid electronically within the competent court? Yes 1.0 4. Publication of judgments 1.0 4.a Are judgments rendered in commercial cases at all levels made available to the Yes general public through publication in o cial gazettes, in newspapers or on the internet or court website? 4.b. Are judgments rendered in commercial cases at the appellate and supreme Yes court level made available to the general public through publication in o cial gazettes, in newspapers or on the internet or court website? Alternative dispute resolution (0-3) 1.5 1. Arbitration 1.0 1.a. Is domestic commercial arbitration governed by a consolidated law or Yes consolidated chapter or section of the applicable code of civil procedure encompassing substantially all its aspects? 1.b. Are there any commercial disputes—aside from those that deal with public Yes order or public policy—that cannot be submitted to arbitration? 1.c. Are valid arbitration clauses or agreements usually enforced by the courts? Yes 2. Mediation/Conciliation 0.5 2.a. Is voluntary mediation or conciliation available? Yes 2.b. Are mediation, conciliation or both governed by a consolidated law or No consolidated chapter or section of the applicable code of civil procedure encompassing substantially all their aspects? 2.c. Are there nancial incentives for parties to attempt mediation or conciliation (i.e., No if mediation or conciliation is successful, a refund of court ling fees, income tax credits or the like)? Resolving Insolvency Doing Business studies the time, cost and outcome of insolvency proceedings involving domestic legal entities. These variables are used to calculate the recovery rate, which is recorded as cents on the dollar recovered by secured creditors through reorganization, liquidation or debt enforcement (foreclosure or receivership) proceedings. To determine the present value of the amount recovered by creditors, Doing Business uses the lending rates from the International Monetary Fund, supplemented with data from central banks and the Economist Intelligence Unit. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Time required to recover debt (years) To make the data on the time, cost and outcome comparable across economies, several assumptions about the business and the case are Measured in calendar years used: Appeals and requests for extension are included - A hotel located in the largest city (or cities) has 201 employees and 50 Cost required to recover debt (% of debtor’s estate) suppliers. The hotel experiences nancial di culties. Page 60   Measured as percentage of estate value - The value of the hotel is 100% of the income per capita or the equivalent if mediation or conciliation is successful, a refund of court ling fees, income tax credits or the like)? Doing Business 2018 Ukraine Resolving Insolvency Doing Business studies the time, cost and outcome of insolvency proceedings involving domestic legal entities. These variables are used to calculate the recovery rate, which is recorded as cents on the dollar recovered by secured creditors through reorganization, liquidation or debt enforcement (foreclosure or receivership) proceedings. To determine the present value of the amount recovered by creditors, Doing Business uses the lending rates from the International Monetary Fund, supplemented with data from central banks and the Economist Intelligence Unit. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Time required to recover debt (years) To make the data on the time, cost and outcome comparable across economies, several assumptions about the business and the case are Measured in calendar years used: Appeals and requests for extension are included - A hotel located in the largest city (or cities) has 201 employees and 50 Cost required to recover debt (% of debtor’s estate) suppliers. The hotel experiences nancial di culties. Measured as percentage of estate value - The value of the hotel is 100% of the income per capita or the equivalent Court fees in local currency of USD 200,000, whichever is greater. - The hotel has a loan from a domestic bank, secured by a mortgage over Fees of insolvency administrators the hotel’s real estate. The hotel cannot pay back the loan, but makes Lawyers’ fees enough money to operate otherwise. Assessors’ and auctioneers’ fees In addition, Doing Business evaluates the adequacy and integrity of the Other related fees existing legal framework applicable to liquidation and reorganization Outcome proceedings through the strength of insolvency framework index. The index tests whether economies adopted internationally accepted good Whether business continues operating as a going practices in four areas: commencement of proceedings, management of concern or business assets are sold piecemeal debtor’s assets, reorganization proceedings and creditor participation. Recovery rate for creditors Measures the cents on the dollar recovered by secured creditors Outcome for the business (survival or not) determines the maximum value that can be recovered Official costs of the insolvency proceedings are deducted Depreciation of furniture is taken into account Present value of debt recovered Strength of insolvency framework index (0- 16) Sum of the scores of four component indices: Commencement of proceedings index (0-3) Management of debtor’s assets index (0-6) Reorganization proceedings index (0-3) Creditor participation index (0-4) Europe & OECD high Indicator Ukraine Central Asia income Overall Best Performer Recovery rate (cents on the dollar) 8.9 38.0 71.2 93.1 (Norway) Time (years) 2.9 2.3 1.7 0.4 (Ireland) Page 61   Cost (% of estate) 40.5 13.1 9.1 1.00 (Norway) Creditor participation index (0-4) Doing Business 2018 Ukraine Europe & OECD high Indicator Ukraine Central Asia income Overall Best Performer Recovery rate (cents on the dollar) 8.9 38.0 71.2 93.1 (Norway) Time (years) 2.9 2.3 1.7 0.4 (Ireland) Cost (% of estate) 40.5 13.1 9.1 1.00 (Norway) Outcome (0 as piecemeal sale and 1 as going 0 .. .. .. concern) Strength of insolvency framework index (0-16) 7.5 10.8 12.1 15.00 (6 Economies) Figure – Resolving Insolvency in Ukraine and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 67.52: Kazakhstan (Rank: 39) 54.19: Regional Average (Europe & Central Asia) 52.56: Moldova (Rank: 65) 51.26: Belarus (Rank: 68) 37.67: Kyrgyz Republic (Rank: 119) 28.24: Ukraine (Rank: 149) Note: The ranking of economies on the ease of resolving insolvency is determined by sorting their distance to frontier scores for resolving insolvency. These scores are the simple average of the distance to frontier scores for the recovery rate and the strength of insolvency framework index. Figure – Resolving Insolvency in Ukraine – Time and Cost Time Cost 3.5 45 40.5 2.8 2.9 40 3 35 2.5 2.3 Cost (% of estate) Time (years) 30 2 1.7 25 1.5 1.5 1.5 1.5 17.0 20 15.0 15.0 15.0 13.1 15 1 9.1 10 0.5 5 0 0 Belarus Europe & Kazakhstan Kyrgyz Republic Moldova OECD high income Ukraine Central Asia Figure – Resolving Insolvency in Ukraine and comparator economies – Measure of Quality the Ukraine 4 2 1 0.5 Page 62   Belarus 5.5 2 2 0.5 Belarus Europe & Kazakhstan Kyrgyz Republic Moldova OECD high income Ukraine Central Asia Doing Business 2018 Ukraine Figure – Resolving Insolvency in Ukraine and comparator economies – Measure of Quality the Ukraine 4 2 1 0.5 Belarus 5.5 2 2 0.5 Kazakhstan 6 3 4 2 Kyrgyz Republic 1 3 0 2 Moldova 4 2.5 3 2.5 OECD high income 5.4 2.8 2.3 1.9 Europe & Central Asia 4.4 2.6 2.1 1.8 0 2 4 6 8 10 12 14 16 Sub-Indicator Score Management of debtor's assets index (0­6) Commencement of proceedings index (0­3) Creditor participation index (0­4) Reorganization proceedings index (0­3) Figure – Resolving Insolvency in Ukraine and comparator economies – Recovery Rate Recovery Rate (cents on the dollar) 40 37.2 38.3 38.0 35.2 35 30 28.0 25 20 15 8.9 10 5 0 Ukraine Belarus Kazakhstan Kyrgyz Republic Moldova Europe & Central Asia Details – Resolving Insolvency in Ukraine Indicator Answer Explanation Proceeding liquidation Under current Ukrainian insolvency legislation (Articles 5-6 of the Bankruptcy Law), Mirage's (after an management can initiate pre-insolvency restructuring proceedings, but it needs BizBank's attempt at consent. BizBank is likely not to agree to such proceedings, because it would be more reorganization) interested in recovering its loan through foreclosure. Therefore, in order to prevent the foreclosure by BizBank against Mirage's property (and, as a result, sale of Mirage's property piecemeal), Mirage will initiate insolvency proceedingы. According to Article 19 of the Bankruptcy Law, once Mirage's management initiates insolvency proceedings, all enforcement actions for claims which arose prior to insolvency filing will be stayed for the entire duration of the insolvency proceedings and no penalties will be added to the existing claims. However, it is unlikely that Mirage's solvency can be restored and restructured during the reorganization proceedings. As a result, the commercial court will announce Mirage bankrupt and initiate liquidation proceedings. Page 63   Ukraine Belarus Kazakhstan Kyrgyz Republic Moldova Europe & Central Asia Doing Business 2018 Ukraine Details – Resolving Insolvency in Ukraine Indicator Answer Explanation Proceeding liquidation Under current Ukrainian insolvency legislation (Articles 5-6 of the Bankruptcy Law), Mirage's (after an management can initiate pre-insolvency restructuring proceedings, but it needs BizBank's attempt at consent. BizBank is likely not to agree to such proceedings, because it would be more reorganization) interested in recovering its loan through foreclosure. Therefore, in order to prevent the foreclosure by BizBank against Mirage's property (and, as a result, sale of Mirage's property piecemeal), Mirage will initiate insolvency proceedingы. According to Article 19 of the Bankruptcy Law, once Mirage's management initiates insolvency proceedings, all enforcement actions for claims which arose prior to insolvency filing will be stayed for the entire duration of the insolvency proceedings and no penalties will be added to the existing claims. However, it is unlikely that Mirage's solvency can be restored and restructured during the reorganization proceedings. As a result, the commercial court will announce Mirage bankrupt and initiate liquidation proceedings. Outcome piecemeal sale As part of the liquidation proceedings, the insolvency administrator will attempt to sell the hotel's assets in order to satisfy the creditors' claims. It is very unlikely that a purchaser can be found willing to buy the hotel as a whole and continue operating it. Therefore, the assets of the hotel will most likely be sold piecemeal at an auction. Time (in years) 2.9 Mirage’s management will initiate insolvency proceedings, which will stay all enforcement actions for claims which arose prior to insolvency filing (Art. 19 of the bankruptcy law). The court will notify the creditors through public announcement. Creditors will file their claims within a 30-day period (Art. 23 of the bankruptcy law). The court will appoint an insolvency administrator who will review the creditors’ claims and submit a report with the results of the review to the court’s approval. After the decision by the court, the insolvency administrator will notify the creditors whether their claims were accepted or rejected and the list of creditors’ claims will be composed. After the list of creditors’ claims is finalized, the first meeting of the creditors will be held, where the creditors will decide whether to liquidate Mirage or to proceed with restructuring proceedings. If the creditors cannot agree on the course of action, the court will make a decision to liquidate the company. After the decision to liquidate the company is made, an evaluation of the assets will be made and the assets will be sold piecemeal. Reorganization procedure is limited to 6 months, but can be extended on the request of the administrator for up to 12 months. The liquidation phase can take 12- 24 months. Cost (% of 40.5 The cost associated with proceedings would amount to approximately 40.5% of the value of estate) the debtor's estate. The major expenses are comprised of court fees (2%), attorneys’ fees (around 10.5%), fees of the insolvency representative (13%), fees of other professionals involved in the case (around 7%), and auctioneer's fees (8%). Recovery rate (cents on the 8.9 dollar) Details – Resolving Insolvency in Ukraine – Measure of Quality Answer Score Strength of insolvency framework index (0-16) 7.5 Commencement of proceedings index (0-3) 2.0 What procedures are available to a DEBTOR when commencing insolvency (b) Debtor may 0.5 Page 64   proceedings? le for dollar) Doing Business 2018 Ukraine Details – Resolving Insolvency in Ukraine – Measure of Quality Answer Score Strength of insolvency framework index (0-16) 7.5 Commencement of proceedings index (0-3) 2.0 What procedures are available to a DEBTOR when commencing insolvency (b) Debtor may 0.5 proceedings? le for liquidation only Does the insolvency framework allow a CREDITOR to le for insolvency of the debtor? (b) Yes, but a 0.5 creditor may le for liquidation only What basis for commencement of the insolvency proceedings is allowed under the (a) Debtor is 1.0 insolvency framework? generally unable to pay its debts as they mature Management of debtor's assets index (0-6) 4.0 Does the insolvency framework allow the continuation of contracts supplying essential Yes 1.0 goods and services to the debtor? Does the insolvency framework allow the rejection by the debtor of overly burdensome Yes 1.0 contracts? Does the insolvency framework allow avoidance of preferential transactions? Yes 1.0 Does the insolvency framework allow avoidance of undervalued transactions? Yes 1.0 Does the insolvency framework provide for the possibility of the debtor obtaining credit No 0.0 after commencement of insolvency proceedings? Does the insolvency framework assign priority to post-commencement credit? (c) No priority is 0.0 assigned to post- commencement creditors Reorganization proceedings index (0-3) 0.5 Which creditors vote on the proposed reorganization plan? (c) Other 0.5 Does the insolvency framework require that dissenting creditors in reorganization No 0.0 receive at least as much as what they would obtain in a liquidation? Are the creditors devided into classes for the purposes of voting on the reorganization No 0.0 plan, does each class vote separately and are creditors in the same class treated equally? Creditor participation index (0-4) 1.0 Does the insolvency framework require approval by the creditors for selection or No 0.0 appointment of the insolvency representative? Does the insolvency framework require approval by the creditors for sale of substantial No 0.0 assets of the debtor? Page 65   Does the insolvency framework require approval by the creditors for selection or No 0.0 appointment Doing Business of the 2018insolvency representative? Ukraine Does the insolvency framework require approval by the creditors for sale of substantial No 0.0 assets of the debtor? Does the insolvency framework provide that a creditor has the right to request No 0.0 information from the insolvency representative? Does the insolvency framework provide that a creditor has the right to object to Yes 1.0 decisions accepting or rejecting creditors' claims? Note: Even if the economy’s legal framework includes provisions related to insolvency proceedings (liquidation or reorganization), the economy receives 0 points for the strength of insolvency framework index, if time, cost and outcome indicators are recorded as “no practice”. Labor Market Regulation Doing Business presents the data for the labor market regulation indicators in an annex. The report does not present rankings of economies on these indicators or include the topic in the aggregate distance to frontier score or ranking on the ease of doing business. Detailed data collected on labor market regulation are available on the Doing Business website (http://www.doingbusiness.org/data/exploretopics/labor-market-regulation). The most recent round of data collection was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Hiring To make the data comparable across economies, several assumptions (i) whether xed-term contracts are prohibited for about the worker and the business are used. permanent tasks; (ii) maximum cumulative duration of xed-term contracts; (iii) length of the The worker: probationary period; (iv) minimum wage. - Is a cashier in a supermarket or grocery store, age 19, with one year of work experience. Working hours - Is a full-time employee. (i) maximum number of working days allowed per - Is not a member of the labor union, unless membership is mandatory. week; (ii) premiums for work: at night, on a weekly rest day and overtime; (iii) whether there are The business: restrictions on work at night, work on a weekly rest - Is a limited liability company (or the equivalent in the economy). day and for overtime work; (iv) whether nonpregnant - Operates a supermarket or grocery store in the economy’s largest and nonnursing women can work same night hours business city. For 11 economies the data are also collected for the second as men; (v) length of paid annual leave. largest business city. - Has 60 employees. Redundancy rules - Is subject to collective bargaining agreements if such agreements cover (i) whether redundancy can be basis for terminating more than 50% of the food retail sector and they apply even to rms that workers; (ii) whether employer needs to notify are not party to them. and/or get approval from third party to terminate 1 - Abides by every law and regulation but does not grant workers more redundant worker and a group of 9 redundant bene ts than those mandated by law, regulation or (if applicable) collective workers; (iii) whether law requires employer to bargaining agreements. reassign or retrain a worker before making worker redundant; (iv) whether priority rules apply for redundancies and reemployment. Redundancy cost (i) notice period for redundancy dismissal; (ii) severance payments due when terminating a redundant worker. Job quality (i) whether law mandates equal remuneration for work of equal value and nondiscrimination based on gender in hiring; (ii) whether law mandates paid or unpaid maternity leave; (iii) length of paid maternity Page 66   leave; (iv) whether employees on maternity leave the economy receives 0 points for the strength of insolvency framework index, if time, cost and outcome indicators are recorded as “no practice”. Doing Business 2018 Ukraine Labor Market Regulation Doing Business presents the data for the labor market regulation indicators in an annex. The report does not present rankings of economies on these indicators or include the topic in the aggregate distance to frontier score or ranking on the ease of doing business. Detailed data collected on labor market regulation are available on the Doing Business website (http://www.doingbusiness.org/data/exploretopics/labor-market-regulation). The most recent round of data collection was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Hiring To make the data comparable across economies, several assumptions (i) whether xed-term contracts are prohibited for about the worker and the business are used. permanent tasks; (ii) maximum cumulative duration of xed-term contracts; (iii) length of the The worker: probationary period; (iv) minimum wage. - Is a cashier in a supermarket or grocery store, age 19, with one year of work experience. Working hours - Is a full-time employee. (i) maximum number of working days allowed per - Is not a member of the labor union, unless membership is mandatory. week; (ii) premiums for work: at night, on a weekly rest day and overtime; (iii) whether there are The business: restrictions on work at night, work on a weekly rest - Is a limited liability company (or the equivalent in the economy). day and for overtime work; (iv) whether nonpregnant - Operates a supermarket or grocery store in the economy’s largest and nonnursing women can work same night hours business city. For 11 economies the data are also collected for the second as men; (v) length of paid annual leave. largest business city. - Has 60 employees. Redundancy rules - Is subject to collective bargaining agreements if such agreements cover (i) whether redundancy can be basis for terminating more than 50% of the food retail sector and they apply even to rms that workers; (ii) whether employer needs to notify are not party to them. and/or get approval from third party to terminate 1 - Abides by every law and regulation but does not grant workers more redundant worker and a group of 9 redundant bene ts than those mandated by law, regulation or (if applicable) collective workers; (iii) whether law requires employer to bargaining agreements. reassign or retrain a worker before making worker redundant; (iv) whether priority rules apply for redundancies and reemployment. Redundancy cost (i) notice period for redundancy dismissal; (ii) severance payments due when terminating a redundant worker. Job quality (i) whether law mandates equal remuneration for work of equal value and nondiscrimination based on gender in hiring; (ii) whether law mandates paid or unpaid maternity leave; (iii) length of paid maternity leave; (iv) whether employees on maternity leave receive 100% of wages; (v) availability of ve fully paid days of sick leave a year; (vi) eligibility requirements for unemployment protection. Details – Labor Market Regulation in Ukraine Answer Hiring Page 67   Fixed-term contracts prohibited for permanent tasks? Yes days of sick leave a year; (vi) eligibility requirements for unemployment protection. Doing Business 2018 Ukraine Details – Labor Market Regulation in Ukraine Answer Hiring Fixed-term contracts prohibited for permanent tasks? Yes Maximum length of a single xed-term contract (months) No limit Maximum length of xed-term contracts, including renewals (months) No limit Minimum wage applicable to the worker assumed in the case study (US$/month) 133.8 Ratio of minimum wage to value added per worker 0.5 Maximum length of probationary period (months) 3.0 Working hours Standard workday 8.0 Maximum number of working days per week 5.5 Premium for night work (% of hourly pay) 20.0 Premium for work on weekly rest day (% of hourly pay) 100.0 Premium for overtime work (% of hourly pay) 100.0 Restrictions on night work? No Whether nonpregnant and nonnursing women can work the same night hours as men No Restrictions on weekly holiday? Yes Restrictions on overtime work? Yes Paid annual leave for a worker with 1 year of tenure (working days) 18.0 Paid annual leave for a worker with 5 years of tenure (working days) 18.0 Paid annual leave for a worker with 10 years of tenure (working days) 18.0 Paid annual leave (average for workers with 1, 5 and 10 years of tenure, in working days) 18.0 Redundancy rules Dismissal due to redundancy allowed by law? Yes Third-party noti cation if one worker is dismissed? No Third-party approval if one worker is dismissed? No Third-party noti cation if nine workers are dismissed? No Third-party approval if nine workers are dismissed? No Retraining or reassignment obligation before redundancy? Yes Page 68   Third-party Doing approval Business 2018 if nine workers are dismissed? Ukraine No Retraining or reassignment obligation before redundancy? Yes Priority rules for redundancies? Yes Priority rules for reemployment? Yes Redundancy cost Notice period for redundancy dismissal for a worker with 1 year of tenure 8.7 Notice period for redundancy dismissal for a worker with 5 years of tenure 8.7 Notice period for redundancy dismissal for a worker with 10 years of tenure 8.7 Notice period for redundancy dismissal (average for workers with 1, 5 and 10 years of tenure) 8.7 Severance pay for redundancy dismissal for a worker with 1 year of tenure 4.3 Severance pay for redundancy dismissal for a worker with 5 years of tenure 4.3 Severance pay for redundancy dismissal for a worker with 10 years of tenure 4.3 Severance pay for redundancy dismissal (average for workers with 1, 5 and 10 years of tenure) 4.3 Job quality Equal remuneration for work of equal value? No Gender nondiscrimination in hiring? Yes Paid or unpaid maternity leave mandated by law? Yes Minimum length of maternity leave (calendar days)? 126.0 Receive 100% of wages on maternity leave? Yes Five fully paid days of sick leave a year? Yes Unemployment protection after one year of employment? Yes Minimum contribution period for unemployment protection (months)? 6.0 Business Reforms in Ukraine In the year ending June 1, 2017, 119 economies implemented 264 total reforms across the di erent areas measured by Doing Business. Doing Business has recorded more than 2,900 regulatory reforms making it easier to do business since 2004. Reforms inspired by Doing Business have been implemented by economies in all regions. The following are the reforms for Ukraine implemented since Doing Business 2008. = Doing Business reform making it easier to do business. = Change making it more di cult to do business. DB2018 Dealing with Construction Permits: Ukraine made dealing with construction permits easier by reducing fees. Protecting Minority Investors: Ukraine strengthened minority investors protections by requiring detailed immediate public disclosure of related-party transactions. Paying Taxes: Ukraine made paying taxes easier by reducing the rate for the uni ed social contribution tax. DB2017 Page 69   Protecting Minority Investors: Ukraine strengthened minority investor protections by requiring interested director or Minimum contribution period for unemployment protection (months)? 6.0 Doing Business 2018 Ukraine Business Reforms in Ukraine In the year ending June 1, 2017, 119 economies implemented 264 total reforms across the di erent areas measured by Doing Business. Doing Business has recorded more than 2,900 regulatory reforms making it easier to do business since 2004. Reforms inspired by Doing Business have been implemented by economies in all regions. The following are the reforms for Ukraine implemented since Doing Business 2008. = Doing Business reform making it easier to do business. = Change making it more di cult to do business. DB2018 Dealing with Construction Permits: Ukraine made dealing with construction permits easier by reducing fees. Protecting Minority Investors: Ukraine strengthened minority investors protections by requiring detailed immediate public disclosure of related-party transactions. Paying Taxes: Ukraine made paying taxes easier by reducing the rate for the uni ed social contribution tax. DB2017 Protecting Minority Investors: Ukraine strengthened minority investor protections by requiring interested director or shareholder to be excluded from the vote, by requiring that proposed related-party transactions undergo external review, by introducing remedies in cases where related-party transactions are harmful to the company and also clarifying ownership and control structures. Enforcing Contracts: Ukraine made enforcing contracts easier by introducing a system that allows users to pay court fees electronically. DB2016 Starting a Business: Ukraine made starting a business easier by reducing the time required for VAT registration and by eliminating business registration fees. DB2015 Paying Taxes: Ukraine made paying taxes easier for companies by introducing an electronic system for ling and paying labor taxes. On the other hand, it increased the environmental tax. DB2014 Starting a Business: Ukraine made starting a business easier by eliminating the requirement for registration with the statistics authority and by eliminating the cost for value added tax registration. Dealing with Construction Permits: Ukraine made dealing with construction permits easier by introducing a risk-based approval system, eliminating requirements for certain approvals and technical conditions and simplifying the process for registering real estate ownership rights. Getting Electricity: Ukraine made getting electricity easier by streamlining the process for obtaining a new connection. Registering Property: Ukraine made transferring property easier by streamlining procedures and revamping the property registration system. Getting Credit: Ukraine improved access to credit information by collecting data on rms from nancial institutions. Paying Taxes: Ukraine made paying taxes easier for companies by simplifying tax returns and further improving its electronic ling system. Trading across Borders: Ukraine made trading across borders easier by releasing customs declarations more quickly and reducing the number of physical inspections. Resolving Insolvency: Ukraine made resolving insolvency easier by strengthening the rights of secured creditors, introducing new rehabilitation procedures and mechanisms, making it easier to invalidate suspect transactions and shortening the statutory periods for several steps of the insolvency process. DB2013 Page 70   new rehabilitation procedures and mechanisms, making it easier to invalidate suspect transactions and shortening the statutory periods for several steps of the insolvency process. Doing Business 2018 Ukraine DB2013 Starting a Business: Ukraine made starting a business easier by eliminating the minimum capital requirement for company incorporation as well as the requirement to have incorporation documents notarized. Registering Property: Ukraine made property transfers faster by introducing an e ective time limit for processing transfer applications at the land cadastre in Kiev. Paying Taxes: Ukraine made paying taxes easier by implementing electronic ling and payment for medium-size and large enterprises. DB2012 Starting a Business: Ukraine made starting a business easier by eliminating the requirement to obtain approval for a new corporate seal. Paying Taxes: Ukraine made paying taxes easier and less costly for rms by revising and unifying tax legislation, reducing corporate income tax rates and unifying social security contributions. Trading across Borders: Ukraine made trading across borders more di cult by introducing additional inspections for customs clearance of imports. Enforcing Contracts: Ukraine amended legislation to streamline commercial dispute resolution and increase the e ciency of enforcement procedures. Resolving Insolvency: Ukraine amended its legislation on enforcement, introducing more guarantees for secured creditors. DB2011 Starting a Business: Ukraine eased business start-up by substantially reducing the minimum capital requirement. Dealing with Construction Permits: Ukraine made dealing with construction permits easier by implementing national and local regulations that streamlined procedures. Paying Taxes: Ukraine eased tax compliance by introducing and continually enhancing an electronic ling system for value added tax. DB2010 Protecting Minority Investors: Ukraine strengthened investor protections through a new joint stock companies law enhancing approval requirements for related-party transactions, increasing disclosure requirements in the annual report and making it easier to sue directors in cases where related-party transactions harm the company. DB2009 Dealing with Construction Permits: Dealing with construction permits in Ukraine became more costly because of the introduction of an infrastructure tax and more time consuming because of an administrative backlog. Getting Credit: Ukraine improved access to credit information by creating a new private credit bureau. Paying Taxes: Ukraine made paying taxes less costly for companies by reducing employers’ contribution rate to the pension fund —though it also increased their contribution rates to the social security fund and social insurance for work accidents. Trading across Borders: Ukraine reduced the time for importing by improving port infrastructure and services. Page 71   —though it also increased their contribution rates to the social security fund and social insurance for work accidents. Trading Doing 2018 Ukraine across Borders: Business reduced the time for importing by improving port infrastructure and services. Ukraine Page 72