How to open a restaurant in Ukraine

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How to open a restaurant in Ukraine

If you have been prospecting on opening a restaurant in Ukraine, it's not an impracticable idea. This business has become more popular over the years.
 
Some of the reasons why the business is flourishing in Ukraine are:
 

  • Lower tax burdens in comparison to other European countries;
  • The convenience of the geographical location (with regard to logistics);
  • Lower costs of launching the business;
  • Rich natural environment with friendly people.

 
To get started, what do you need?
 
Capacity Registration
This allows you to obtain an Operational permit. The permit is mandatory for any organization that specializes in food operations. You can acquire this from the Consumer Protection and Welfare authorities.
 
Utilities
 
Whether the restaurant you would like to open is a first, premium, or luxury class, it would need to have the following:
 

  • A water supply;
  • A mode of communication e.g. telephone;
  • Ventilation;
  • Electricity;

 
Security
You should make sure that your restaurant is well protected against accidents and burglary. You do this by:
 

  • Installing security and fire alarm systems;
  • Getting a declaration from the country's State Emergency Service;
  • Making sure that the layout of the premises is what's expected (the government always checks this first).

 
Employment 
You should handle all the formalities related to hiring staff. This will include following up on their medical examinations and health permits. 
 
A restaurant is a food facility and hence you cannot compromise on health matters. Everyone, from the kitchen managers to waiters and cleaners, should pass their health examinations.
 
Considerations for foreigners
Ukrainian legislation allows both citizens and foreigners to conduct business in the state. If you're a foreigner wishing to open a restaurant in Ukraine, here are the requirements for the business registration and hiring of foreign employees.
 
Registration
You will need to acquire an individual Tax ID number. This unique number will be reserved for you permanently. Without a Tax ID number, you cannot legally operate a business in Ukraine.
 
Foreign citizen employment
For foreigners to work legally, they must obtain a work permit in Ukraine. For this to happen, they will have to provide all the required personal and legal documents.
 
If the foreigner is the founder of the business, he may not be able to apply for a work permit personally. This is because his/her documents may need to be filed on behalf of a registered business. To solve this, a temporary head of the business can be appointed from among the citizens of Ukraine. This person can then be fired when the business owner has received his/her work permit.
 
One other important factor that a foreigner who wishes to open a business in Ukraine should know is that if the share capital of their company is above 100,000 USD, they have legal grounds of applying for a permanent residence in the country.
 
Alcohol licenses
If the restaurant is going to serve alcoholic beverages such as wines, you will be required to obtain licenses. 
 
Usually, getting a license is a long process. It requires a lot of communication with the agencies. You will be asked to prepare various documents in order to complete the process. Once you have obtained the license, you may need to register it with the country's tax authority.
 
Over to you
In general, opening a restaurant in Ukraine is not so hard. You only need to be equipped with proper documentation and to fulfil the legislated requirements for opening a food facility business in the state.
 
To hasten the process, you can use the help of qualified lawyers. You might find this quite convenient especially if you're not familiar with the local Ukrainian/Russian language.

 

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