Military Personnel Participation in Startups and Shareholdings in Ukraine.
- Are members of the armed forces permitted to hold shareholdings in private companies, including startups, provided that they do not participate in management?
- Is notification or approval required before acquiring a shareholding or establishing a company?
- Are there any notable limitations, thresholds or conflict-of-interest rules?
jurisdiction
1. Are members of the armed forces permitted to hold shareholdings in private companies, including startups, provided that they do not participate in management?
Generally, yes. Ukrainian law does not impose a blanket prohibition on military personnel holding shares or other corporate rights in private companies.
However, a distinction must be made between military servicemen and military officials. Military officials are servicemen who hold positions with organisational, administrative or economic responsibilities, or who are otherwise authorised to perform such functions.
Military officials are subject to stricter anti-corruption rules. They are generally prohibited from engaging in entrepreneurial activities, carrying out other paid activities (subject to statutory exceptions) or participating in the management, executive, supervisory or control bodies of commercial entities.
Temporary exemptions may apply during periods of mobilisation and martial law, subject to specific legal conditions.
2. Is notification or approval required before acquiring a shareholding or establishing a company?
Military officials must transfer their corporate rights to an independent third party (other than a family member) within 60 days of appointment to a military official position.
They must also notify the National Agency on Corruption Prevention and provide a notarised copy of the relevant transfer agreement.
In addition, certain military personnel who are subject to financial disclosure requirements must declare:
- their shareholdings and corporate rights; and
- any legal entities in which they are the ultimate beneficial owner or controller.
3. Are there any notable limitations, thresholds or conflict-of-interest rules?
Yes. Military officials must notify their supervisor of any actual or potential conflict of interest no later than the next working day after becoming aware of it.
Where no direct supervisor exists for the relevant position, the notification must be made to the National Agency on Corruption Prevention or another authority designated by law.
The key restrictions therefore relate to conflicts of interest, anti-corruption requirements, participation in management and disclosure obligations rather than passive share ownership itself.
Summary
Ukrainian law generally permits passive shareholdings by military personnel. However, military officials are subject to additional anti-corruption, disclosure and conflict-of-interest rules, including restrictions on entrepreneurial activity and participation in corporate management.
