Ukrainian government allows foreign companies to obtain construction permits under a simplified procedure

On 9 August 2024, the Cabinet of Ministers of Ukraine has amended its Resolution No. 314 dated 18 March 2022 to finally allow foreign construction companies to obtain construction permits under a simplified declaration procedure. The amendment became effective on 16 August 2024.

In particular, foreign construction companies operating via their permanent establishments in Ukraine are now allowed to carry out construction of CC2 (medium consequence) and CC3 (significant consequence) complexity classes without obtaining a license, by submitting a simple declaration.

The declaration is submitted free of charge either electronically through the Diia Portal or in paper form via Administrative Service Centers.

The declaration must include, among other things:

• General information about the non-resident and its permanent establishment in Ukraine (country of origin, location, identification code per the Unified State Register of Legal Entities, etc.);
• Information on tax registration of the applicant and its permanent establishment in Ukraine;
• Details on the type of foreign economic activity and the actual address(es) of its operations.

Therefore, to commence construction activities, a non-resident must:

• Register with the respective tax authorities and register a representative office in Ukraine,
• Register on the Diia Portal,
• Submit the declaration.

The declaration is processed automatically and does not require additional approvals.

Previously, construction activities for complex constructions were subject to mandatory licensing. However, during martial law, these requirements were simplified, allowing construction companies to obtain construction permits through a declarative process. Due to the lack of clear application of simplified requirements to non-residents, the latter could not obtain construction permits under the simplified procedure.

Please note that within three months following the termination of martial law, construction companies will be required to apply for a license to conduct construction activities under the established procedure. These licenses are not currently being issued due to the absence of approved licensing requirements.