Specific considerations apply to the appointment of a foreign national to the position of CEO of a newly established Ukrainian company.

Although there is no express prohibition established by law, in practice, a foreign national may not be the first director of a newly created Ukrainian legal entity. This is because the foreign national may not sign any documents on behalf of the newly established company until the company has obtained a Ukrainian work permit for such foreign national. In addition, many papers must be signed by the director in the process of establishing a new company, including the work permit applications. Therefore, a Ukrainian citizen should be appointed to temporarily act as the director of the subsidiary at least until a work permit is obtained for the foreign national appointed to that position.

Additionally, as a prerequisite for registering the director as an authorized signatory to operate the bank accounts of a company, some Ukrainian banks require a copy of the work permit and the temporary residence permit for the director evidencing their registration at the place of their residence in Ukraine. The absence of such registration normally occurs only if the director does not physically reside in Ukraine but manages the company remotely or through short visits and, as such, does not have any accommodation or a registered address in Ukraine. For that reason, it is recommended not to appoint a foreign national to the position of director who will not actually reside in Ukraine, or consider some alternatives allowing a smooth operation of the newly established company without the constant presence in Ukraine of the foreign national appointed as the director.

On 26 June 2023, the draft law on the regulation of certain issues of foreign nationals and stateless persons crossing the state border into Ukraine under martial law was registered. If adopted, to cross the state border during martial law and two years afterwards, foreign nationals, among other things, will be required to have an insurance policy, unless certain exceptions apply. This insurance should cover medical expenses and indemnification of risks related to explosive objects and of war-related risks during martial law.