Opening an account for non-residents
In accordance with order of National Bank, foreign companies have a possibility to open account in Ukrainian banks.
Non-Ukrainian physical and legal representatives can now also use this service. This also includes foreign investment funds and firms that manage assets on behalf of these funds.
As of 2019, the automatic exchange of data on the financial statements of non-resident persons in accordance with Common Reporting Standard has already been fully implemented in almost 100 countries.
However, Ukraine is still postponing the start of the exchange of tax data indefinitely, despite the fact that back in 2017 a “road map” was developed for the implementation of this procedure. Therefore, so far in Ukraine, automatic exchange does not work, which is definitely a plus for non-residents.
Why non-residents should get an account in Ukraine
Previously, the legislation of Ukraine allowed non-residents to get bank accounts, however, more for investing in the Ukrainian economy and with a limited field for carrying out their own activities. That was until 2019. Now, in accordance with the NBU decree, foreign organizations have a possibility to get account with bank institution of Ukraine in order to conduct their commercial deals.
In addition, taking into consideration such a fact that rules for opening accounts on the Baltic territories and the CIS states have been tightened and complicated, Ukrainian banks have become much more attractive to foreigners.
During several past years, demand of non-residents for foreign currency deposits has increased. Thus, getting a bank account for purpose of storing and exaggerating equity is becoming more common. In addition, a legal entity needs a Ukrainian account in order to get loans, settle accounts with counterparties and pay salaries.
Accounts types for non-residents
Opening procedure depends on the purpose for which it will be used in the future.
If we are talking about increasing capital, then it is advisable to open a deposit account. Non-resident also is allowed to open an investment-type account to conduct transactions that relate to investing in Ukraine.
Simplifications for foreign companies
In addition to fact that opening procedure itself has become available, following are also positive innovations:
- Clients no longer have to submit cards with a sample signature – this procedure has been canceled; now the account is managed by persons who have the right to do so in accordance with the law, and does not need a notary certification;
- An authorized person can open account and manage it by power of attorney;
- In order to change the name of organization, it is not required to close existing accounts.
Currency
You can open an account in the currency of Ukraine, euros and US dollars.
In addition, non-Ukrainians are not limited in how many accounts can be opened in one or in different banking institutions.
Operations that a non-resident can carry out on an account
- transfer of funds to an account from abroad, from one’s own account or from accounts belonging to other legal entities;
- transfer funds in accordance with export agreements;
- transfer from a resident to a non-resident – in hryvnia or in the currency of import agreements;
- buy and sell currency within the interbank foreign exchange market of Ukraine;
- place deposits;
- conduct operations in Ukraine;
- transfer funds from one account to the abroad or Ukrainian one.
It is important to pay attention to the following:
- Ukrainian ATMs issue only hryvnias, however, if a foreigner owns accounts in one of the banks of Ukraine and transfers dollars to his account, he can receive this currency at the cash desk;
- through the personal account, the client can manage the account outside Ukraine;
- the conditions for the provision of services and tariffs may be different in both banks (for example, one bank will take a commission for the fact that a non-resident opens account but not for closing);
- commission may be charged in case of a non-cash transfer of funds from one account of a non-resident person to another;
- in case of absence of funds sufficient to cover the commission, the bank can provide the client with an overdraft (loan) with very high interest rates;
- Ukrainian banks can offer the client such services that are unlikely to be useful, for example, insurance or issuing a premium class card.
