Ukraine has contradictory, complex and frequently changing business laws making it very difficult for investors to develop reliable business plans. This creates uncertainty and creates an unwelcoming and high risk investment environment.
Official fees are not very high but unofficial cash payments are very large and cannot be explained in the accounts of legitimate investors and businesses. Linked to this uncertainty about business costs is the feeling that a business project can be stopped indefinitely by an excessively greedy official (using contradictory law) who refuses a service unless an extortionate payment is made.
The time it takes to complete business deals in Ukraine is significantly longer than other countries due to the steps that are required by law and an extremely disorganized, technologically unconnected and very slow bureaucratic system.
A reduction in steps is necessary and will reduce time and costs. It would be helpful if officials consider ways to centralize permit issuing offices in one regional building and using a connected computerized system. This will significantly reduce the process time and costs as there will be less opportunity to demand cash payments.
A reliable system allows businessmen to make more reliable business plans. This is an immediate encouragement to consider business opportunities in Ukraine. These changes can be paid for by higher official business charges.
Ukraine is a great country, with highly educated people. The future can be as good as the Ukrainian people organize and work for it to be. Do what you can to help Ukraine develop a Low Risk Business Environment.A safer business environment means more business. This means more tax. This means, in time, better health care, better care for the poorer people in society, better roads and a better quality of life for ALL of the Ukrainian people. This is a future worth working towards.
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