Registration and licensing
Licenses or permits may be required to perform certain types of business activities in Ukraine. Licenses must be obtained for mineral exploration, medicine production and sale, commercial passenger and cargo transportation, customs broker services, construction and engineering activities. Licenses and permits are issued after the registration of company but before the entity starts business operating. If a company wants to obtain a license or permit for certain activity it must have state registration certificate.
National Bank of Ukraine issues licenses for banking activities and foreign currency transactions An organization must obtain a license at the State Commission on Securities and the Stock Exchange of Ukraine to carry out activities on the stock exchange.
Monopoly and restrictive trade
The entity is deemed to be monopoly if it has no competitors in particular market and / or faces no significant competition. An entity whose share of the market of certain goods exceeds 35% is considered to have a monopoly position if it fails to prove significant competition in this market.
When several entities are suspected of assuming a monopoly position, each unit considered to be a monopoly, if the total share of not more than three and five entities with the largest market share exceeds 50% and 70%, respectively (unless there is evidence of competition).
Although the existence of monopolies in Ukraine is not prohibited as such, a monopoly can be fined (up to 10% of annual profits) if it is found to be abusing its dominant position and engaged in anticompetitive concerted actions.
Mergers and Acquisitions
Mergers and acquisitions are governed by competition law. The Antimonopoly Commission (AMC) is charged with preventing monopolies from abusing their dominant position and / or restricting competition in the market.
Prior permission from the AMC is required for mergers of business entities with the total book value (or the total turnover) exceeding an equivalent of EUR 12 million.
Also AMC permission is required for merges in cases the value of assets held in Ukraine and abroad by at least two concentration participants exceeds EUR 1 million.