A company investment policy is a set of owner-approved rules on what the company invests in, from which sources, how projects are selected and who decides. Key Solutions analyses your finances, calculates how much you can invest and drafts the policy.
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In short
- When you need it: you plan major purchases, a new business line, an investment loan or an equity raise.
- What you get: an analysis, a strategy, a policy document and a project programme with payback calculations.
- Timing: in our experience, a few weeks after we receive the statements and plans.
- Fee: agreed per engagement.
- How to start: tell us what you plan to invest in.
What an investment policy is
An investment policy sets how much a company spends on growth, on what and on which terms. Ukrainian law defines investments as property and intellectual assets placed in business activity to earn profit or achieve a social effect; investments in fixed assets with a useful life over one year are capital investments (Art. 1 of Law No. 1560-XII).
Investment policy vs investment strategy
| Document | What it sets | Horizon |
|---|---|---|
| Investment strategy | goals, priority areas, funding sources | several years |
| Investment policy | selection criteria, limits, decision rules | reviewed annually |
| Investment programme | list of projects, amounts, timing | one year or project term |
| Investment project | calculations and a financial model | project term |
What the policy covers
- Goals, priority areas and funding sources.
- Selection criteria: NPV, IRR, payback period, impact on liquidity and debt.
- Limits: maximum debt, minimum cash balance, maximum size of a single project.
- Decision rules: who proposes, who approves, when a shareholder decision is required.
- Monitoring and conditions for stopping a project.
Accounting, tax and corporate angle
We model depreciation, VAT and financing costs before the decision. If a non-resident funds the investment with a loan, check the interest cap: once debt to non-residents exceeds equity more than 3.5 times, interest above 30% of taxable profit plus finance costs and depreciation is added back to the pre-tax result (para. 140.2 of the Tax Code). Interest owed to foreign banks is outside this rule. In a Ukrainian LLC, a transaction above 50% of net assets under the last approved statements needs the participants' meeting approval unless the charter says otherwise (Art. 44(2) of Law No. 2275-VIII). Investor agreements and deal structure are handled by our group's law firm legal.ua.
What the service includes
- Analysis of liquidity, debt and cash flows, and how much you can invest without a cash gap.
- Criteria, limits and decision procedure.
- Project calculations: NPV, IRR, payback, scenarios.
- Tax effects and a draft policy document.
How we work
- Goals and input data Owner's plans, statements and ideas.
- Financial position analysis Liquidity, debt and free cash flow.
- Strategy and criteria Areas, sources, limits and selection rules.
- Project calculations Payback and risks of each project in the programme.
- Policy and presentation Documents handed over and explained.
Timing and fees
In our experience, developing an investment policy takes a few weeks after we receive the statements and plans. The fee is agreed per engagement and fixed in the contract. It depends on the number of projects and entities, the quality of management accounts and the need for market analysis.
What we need from you
- Financial statements and trial balances for recent periods.
- Budgets, planned investments, supplier quotes, loan and leasing terms.
- The charter or other document on management powers.
What you receive
- A memo on financial position.
- An investment strategy and an investment policy with criteria, limits and decision rules.
- An investment programme with calculations and a risk register.
Rules the work relies on
- Art. 1 of Law No. 1560-XII On Investment Activity — definition of investments and capital investments.
- Art. 44(2) of Law No. 2275-VIII — participants' approval of major transactions in an LLC.
- Para. 140.2 of the Tax Code of Ukraine — interest limitation on debt to non-residents.
Why use a contracted team
Typical losses without a policy: cash tied up in equipment leaves no working capital, loan covenants are breached a year later, tax effects surface after the purchase. A contracted team runs these scenarios before the decision and stands behind its calculations.
Why Key Solutions
- Company
- ТОВ «АУДИТОРСЬКА ФІРМА «КЕЙ СОЛЮШНЗ», a Ukrainian limited liability company, EDRPOU code 39610085. Company details are public in the Unified State Register (ЄДР).
- Contract
- We work under a contract: scope, timing and liability are fixed before the work starts. Client information is protected by professional secrecy (Art. 11 of Law No. 2258-VIII).
- Group
- We are part of Innova Consulting Group: legal matters are handled by legal.ua, crypto-asset taxation by crystal.tax.
- Office
- Our office is at 77 Velyka Vasylkivska St., Kyiv. We serve clients across Ukraine remotely. The specialists who run projects are listed on the Our employees page.
Frequently asked questions
What is a company investment policy?
It is a set of owner-approved rules that define what the company invests in, from which sources, by which criteria projects are selected, which limits apply and who takes decisions. The policy turns the growth strategy into clear spending rules.
How does an investment policy differ from an investment strategy?
The strategy sets goals, priority areas and funding sources for several years. The policy sets the rules for carrying it out: selection criteria, limits, approvals and monitoring, and is usually reviewed yearly with the budget.
Which metrics are used to select investment projects?
Usually net present value (NPV), internal rate of return (IRR) and simple and discounted payback. We also check the effect on liquidity and debt, because a profitable project can still create a cash gap.
Who approves an investment policy in a Ukrainian LLC?
The body named in the charter: the participants' meeting, a supervisory board or the director within their powers. Transactions above 50% of net assets under the last approved statements need the participants' meeting approval unless the charter says otherwise (Art. 44(2) of Law No. 2275-VIII).
Do you prepare materials for foreign investors?
Yes. The policy, programme and project calculations can be prepared in English for a foreign investor or parent company. Format, language and deadlines are agreed in the contract before the work starts.
How long does it take and what does it cost?
In our experience, a few weeks after we receive the statements and plans. The fee is agreed per engagement and depends on the number of projects and entities, the quality of management accounts and the need for market analysis. Scope and fee are fixed in the contract.
Related services
Discuss your investment policy
Tell us what you plan to invest in. We will reply with the scope, timeline and fee.
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