When you are setting up a Ukrainian operation with 100% foreign ownership, you will need to hire local staff, at the very least an accountant and a director. In Ukraine, hiring local staff boils down to two options: you can either hire an employee as a full-time employee (registering his/her labor book, paying social insurance taxes, facing problems with termination of socially protected personnel and those conscripted to the army, etc.) or as a private entrepreneur (an independent contractor without labor-related problems). Naturally, most prospective employers prefer the latter option, but it comes with certain risks.
Our new article, “2022 Ukrainian Labor Law Update: Independent Contractors vs. Full Time Employees,” was published in Kyiv post, where we discuss the employment issues of interest to foreign employers. You can read the full article here.
