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Business investment agreement

Business investment agreement

What is an investment agreement?

An investment agreement (business investment agreement) is a commercial and legal agreement between the customer and the investor, which determines the terms of the project implementation, the rights and obligations of the parties. Each such agreement is unique and is developed individually for a specific project and the needs of the parties.

It is important to understand that there is no universal template for an investment agreement. The document must take into account the specifics of the business, the scale of the investment, the expectations of the parties and potential risks. That is why the development of the agreement requires the participation of qualified lawyers from both sides.

Legislative regulation

Investment activities in Ukraine are regulated by a number of regulatory acts:

  • Economic Code of Ukraine
  • Law of Ukraine “On Investment Activity”
  • Law of Ukraine “On Foreign Investment Regime”
  • Law of Ukraine “On State Support for Investment Projects with Significant Investments”

These documents establish a legal framework for carrying out investment activities and protecting the rights of investors.

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Investment objects

Enterprises and production

  • Creation of new enterprises from scratch
  • Reconstruction or expansion of existing production plants
  • Construction of production facilities and complexes
  • Implementation of new production lines

Scientific and technical sphere

  • Full cycle of scientific and technical developments
  • Individual stages of research and development
  • Innovative projects and startups
  • Introduction of new technologies

Financial instruments

  • Securities and Derivatives
  • Bank Deposits
  • Corporate Rights
  • Intellectual Property

Types of investment contracts

інвестиційний договір

Corporate rights purchase and sale agreement

This type of agreement involves the investor entering the authorized capital of the company through the purchase of shares or stakes. It is especially relevant for an already operating business that needs additional financing for development.

Key aspects:

  1. Determining the value of a share
  2. Mechanism of transfer of corporate rights
  3. Procedure of company management after the entry of an investor
  4. Terms of exit from business

Loan agreement

When concluding a loan agreement, the investor provides funds at a certain interest rate. This option has its advantages and risks for both parties.

Advantages for the investor:

  1. Guaranteed income regardless of the success of the project
  2. Clear repayment terms
  3. Possibility of securing the loan with property

Disadvantages:

  1. Limited profit potential
  2. Lack of management involvement
  3. Risk of non-return of funds

Joint activity agreement

It involves pooling the resources of the parties to achieve a common goal. It can include both financial contributions and contributions in the form of property, technology, experience.

Key elements of the agreement:

  1. Amount and form of contributions of the parties
  2. Distribution of profits and losses
  3. Decision-making procedure
  4. Mechanism for exiting joint activities

Convertible loan agreement

An innovative tool that gives the investor the right to choose: to get back the funds with interest or to convert the loan into a share in the business.

Features:

  1. Flexibility in choosing the form of investment return
  2. Possibility of participating in the success of the project
  3. Protection against the risks of failure

Option contract

Gives the investor the right to purchase a stake in a business at a predetermined price for a set period.

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What to check before concluding a business investment agreement

Main terms of the contract

Each investment agreement must contain the following mandatory elements to ensure clarity of interaction between the parties and protection of their interests:

  • Detailed description of the rights and obligations of the parties
  • Clear deadlines for project implementation
  • Mechanism for calculating and paying profits
  • Liability for violation of terms
  • Dispute resolution procedure
  • Confidentiality terms
It will also be useful: Legal analysis of the contract

Risk protection

Comprehensive business due diligence. Before concluding a contract, it is necessary to conduct a thorough analysis of the company, which includes:

  • Financial Statement Analysis
  • Legal Risk Assessment
  • Property Rights Verification
  • Tax Liability Audit
  • Market Position Assessment

Checking a potential partner. Special attention should be paid to studying the reputation and reliability of a future partner according to the following parameters:

  • Business Reputation
  • Litigation
  • Tax Arrears
  • Credit History
  • Founder and Beneficiary Verification

State registration of the contract

Package of documents. For the official registration of the investment agreement, it is necessary to prepare the following list of documents:

Letter of application from the applicant

  • Notarized contract (original and copy)
  • Information card of the established sample
  • Constituent documents with notarization
  • Required licenses
  • Non-resident documents (for foreign investors)
  • Receipt of payment of administrative fee

Registration procedure. Documents are submitted through the ASC to the regional state administration. The processing time is 20 working days.

Submission options:

  • In person by the applicant
  • Through an authorized representative
  • By registered letter

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Legal assistance in drafting a business investment agreement

Successful conclusion of an investment agreement requires careful preparation and professional legal support. It is important to consider all aspects of future cooperation and provide mechanisms for protecting the interests of both parties. Involving qualified lawyers at the stage of preparing the agreement will minimize risks and provide a reliable basis for long-term cooperation.

If you need to develop or analyze an investment agreement, fill out the form below and discuss it with a lawyer soon.

Calculate the cost of services

1 question

Are you planning to invest over $100,000?

Yes
No

2 question

Do you have experience investing in Ukrainian companies?

Yes
No

3 question

Do you need advice on a specific investment project?

Yes
No

Is a subscriber form of service possible to quickly resolve issues as they arise?

Yes, of course, we take companies for permanent support.

The subscription form of service allows you to receive a full range of legal services on an ongoing basis for a fixed monthly fee.

Our lawyers will accompany all economic legal relations of your company: from drawing up contracts and solving corporate issues to representing interests during inspections by regulatory bodies and in court disputes.

We have very flexible pricing, so contact us and we will discuss your specific case.

Do you work only in Kyiv?

Fortunately, modern technologies allow us to effectively solve almost any legal issue online regardless of your location. In cases where personal presence is necessary, our lawyers are ready to travel to any point in Ukraine. Moreover, thanks to our network of reliable partners abroad, we can provide legal support even in international cases. Our goal is to provide you with quality legal assistance wherever you are.

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A court with a foreign firm A lawyer in a business process Accounting services agreement Additional agreement on replacement of a party in the contract Additional agreement on termination of the contract Advertising services agreement Agency agreement Agreement between FOP and LLC on provision of services Agreement between partner companies Agreement of intent Agreement on the provision of information and consulting services Agreement on the transfer of property for temporary use Agricultural land lease agreement Air emissions permit Alcohol license Annuity agreement Antitrust lawyer Appeal against a decision of the commercial court Appealing a court order Appealing a decision of a commercial court Appealing decisions of local government bodies Appealing the decision of Ukrtransbezpeka Arrest of property as part of securing a claim Asset Management Agreement Business investment agreement Business protection: lawyer Cancellation of a license for the retail sale of alcoholic beverages Cancellation of fuel retail license Cannabis cultivation license Carriage contract Certificate of origin for goods: ST-1, U-1, EUR-1 Certification of laboratory glassware and test tubes Charitable donation agreement Claim for non-fulfillment of contract terms Claim to the arbitration court under the supply contract Collect funds (debt) from the Ukrainian company Collection of penalties and fines under a commercial contract Collection of receivables Collection of receivables during martial law Collection of receivables through court Commercial Arbitration Commercial lawyer Compensation for losses in the field of business Compensation for lost profits in commercial law Conclusion of the state sanitary and epidemiological examination: legal support Confidentiality Agreement (NDA) Construction license Construction work license Consulting Services Agreement Contract between a resident and a non-resident Contract for the performance of works (contract) Contract for the provision of educational services Contract for the provision of tourist services Contract for the provision of transport services Contract in favor of a third party Contract with an IT Developer Cooperation agreement between individual entrepreneurs Cord blood bank license Court order for debt collection Court under contract Court with another legal entity Currency exchange license in Ukraine Currency exchange license in Ukraine Debt collection (debt) by court order Debt collection from a foreign company Debt transfer agreement Declaration of invalidity of the agreement Declaration of invalidity of the contract Design Services Agreement Development of a charter for a condominium association Development of a contract for business Development of a franchise agreement (commercial concession agreement) Development of a passport for water management Development of job descriptions Development of NDA (Non-Disclosure Agreement) Double Taxation Agreement Drafting a Non-Disclosure Agreement – Non-Disclosure Agreement (NDA) Electricity supply license Failure to fulfill the terms of the delivery contract Filing a claim to the commercial court Foreign economic agreement Freight forwarding contract Freight transportation license Fuel license for personal use Fuel retail license Fuel storage license Fuel wholesale license Get a product barcode Get Firefighting license Get Fuel storage license Get International transportation license Get License for the supply of electricity GMP certificate Goods purchase agreement Heat supply license International cargo transportation contract International investment arbitration International transportation license Invalidation of the decision of the general meeting ISO 9001 certification Issuance of a permit for waste processing operations Issuance of an operational permit for food products Joint activity agreement Laboratory accreditation Land lease agreement in a complex with a water body located on it Land lease contract Land plot surface agreement Lawsuit for collection of debt under the supply contract Lawsuit for debt collection under the lease agreement Lawyer on economic affairs Lawyer-owner Legal audit of contracts Legal protection of investments Legal support for business acquisition (M&A) Legal support for clinical trials Legal support for connecting to electricity networks Legal support for disputes Legal support for investing in Ukraine Legal support for investment projects Legal support for the creation of an apartment building association Liability agreement License (declaration) for employment mediation abroad License agreement License cancellation License for a preschool institution in Ukraine License for centralized water supply and wastewater disposal License for domestic bus transportation License for domestic transportation in Ukraine License for educational activities License for electrical installation work License for fire-fighting services and works License for import of medicinal products License for 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and a legal entity Loan agreement between legal entities Making claims Marketing Services Agreement Medical device certification Medical practice license Medical practice license extension Medical services contract Non-fulfillment of the terms of the contract for the provision of services Non-residential premises lease agreement Obtaining a certificate of conformity Obtaining a license to sell alcoholic beverages Obtaining a permit from the State Labor Service for the operation of high-risk equipment and performance of high-risk work Obtaining permission from the State Labor Service for compliance of high-risk equipment with the requirements of the law Permit documentation for scrap metal operations Permit for special water use Permit for the transport of dangerous goods Permit to carry out operations in the field of waste management Permit to install solar panels Pre-trial disputes resolution Preparation and registration of a waste declaration Privatization of state property Procedure for appealing the decision of the regulatory authority Product certification Public offer agreement Recognizing business contracts as invalid RECOVERY OF FUNDS (DEBT) UNDER THE SUPPLY CONTRACT DURING MARIAL STATE Registration of disinfectants Registration of medical devices Registration of medicines Reimbursement for solar panels Reimbursement from the founder Renewal of the deadline for appeal/cassation in a commercial process Representation in the economic process Return of property of a legal entity Return of refundable financial aid Securing a claim to the commercial court Service agreement Software development contract State registration of market operator capacities Submission of a claim to the commercial court Submit to an international commercial arbitration court Subscription legal services for companies Sue the buyer’s company in Ukraine Sue the company Sue the counterparty Support of enforcement proceedings in commercial disputes Suspension of the employment contract Taxi license Thermal energy production license Thermal energy transportation license Tobacco and alcohol retail license Tobacco cultivation license Turnkey Business Legal Support Unilateral termination of the contract Vehicle rental agreement between legal entities and individual entrepreneurs Verification of Medical Practice Licensing Conditions Violation of competition