Ukraine

UKRAINE

UKRAINE

COMPANY DETAILS

Amway Ukraine Ltd.

87 Kazymyr Malevyich Street
Kyiv 03150
Ukraine

Phone: +38-044-495-1300
Fax: +38-044-495-1304
Fax: +38-044-495-1344

www.amway.ua (Public Website/MultiLingual)

infoua@amway.com (Customer Service Email)

Opened November 2003

Plan Basics

Overview

Purchasing Products
All ABOs, Members Plus and Members may order directly from Amway.

PV/BV Transfers
PV/BV transfers are not available in Ukraine.

Consolidated Line of Sponsorship (CLOS)
Thirteen Eastern European Amway markets: Bulgaria, Croatia, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, Slovakia, Slovenia, Turkey and Ukraine, are combined into a Consolidated Line of Sponsorship (CLOS) Region. This will allow all current and new ABOs and Members Plus to personally sponsor within and into each of these countries. Option of international sponsoring between the countries within CLOS Region is discontinued. (All businesses established before August 31, 2003 will continue to count according to international sponsoring rules.) International sponsoring from outside the CLOS Region continues to be available. If an ABO has no business in any of the countries that make up the CLOS Region, he will be allowed to establish one new business in the CLOS Region. An ABO or Member Plus who already has at least one business in the CLOS region will not be allowed to establish another one.

Fee Payment / Member Plus Discount
All Fees (know as Bonus or Commission in other markets) will be paid directly from Amway to each ABO earning the fee. Fees can only be paid after a signed copy of an “Acceptance Statement for Provision of Services” and proof of your monthly Unified Tax payment is received. All monthly Fees will be paid by the 15th of each month. Fees will be paid by bank transfer to the ABO's bank account. Member Plus do not qualify for Amway fees and awards. However, they may participate in the Discount Program. When a Member Plus purchases products for personal use, they can receive a Discount on future purchases.

Performance Schedule

PV Performance Fee
10000           21%
7000             18%
4000             15%
2400             12%
1200              9%
600                6%
200                3%

PV/BV Ratio
The average PV/BV ratio for Amway products as of April 2016 is 1:25.

Retail Margin
Retail margin or mark up for Amway products averages about 30% but varies with each product. The average retail margin for this market is 30%.

Online registration
All you have to do is to send an invitation to your prospect. Clicking on the link will direct them to an online registration form; once completed, your new applicant’s account can be immediately activated and they can place the first order. The contract, however, does need to be printed, signed and sent to Amway within 30 days. If the new applicant forgets to send it in, you will receive a reminder so that you can follow up.

Online self-registration
An additional option is available for a prospect to register. The difference to the above procedure is that they do not need the link in the invitation. If you give your last name and distributor number to a potential new applicant, they can then go to the new website and use this data to register, set up an account and place their first order. The contract then needs to be printed, signed and sent back to Amway within 30 days.

Once registered on www.amway.ua, the first order for “Your Start” Kit and all other available products can be made.

Starter Kit Purchasing
“Your Start” Kit is automatically added to the first order, which should be made within 30 days of submitting the contract in order to remain in Amway Ukraine’s files. Every first order with PV from 100 to 199,99 placed within ten (10) days from the moment the Contract has been processed will receive a price discount of 10%. Every first order with PV equal to or higher than 200 placed within ten (10) days from the moment the Contract has been processed will receive a price discount of 20% up to a maximum discount of 1300,00 UAH(including VAT).

Cost of Starter Kit
125 UAH (including VAT)

Sponsoring
Interested persons/companies can be sponsored by Amway Business Owners or Members Plus.

Business Types

Member Plus
- is not registered as private entrepreneur
- purchases products at ABO prices
- has no right to resell products
- can receive discount according to Amway Sales and Marketing Plan
- has the right to sponsor and develop his\her own business
- does nor get awards and recognitions from Amway
- needs to renew his\her contract annually, according to the rules and policies specified in the registration form.

Amway Business Owner
- gets the status of ABO having registered in tax administration and handed all the necessary documents for status change to the company
- purchases products at ABO prices
- has the right to resell products and get retail markup, since he\she is registered in tax administration
- can receive discount according to Amway Sales and Marketing Plan
- has the right to sponsor and develop his\her own business
- can receive awards and recognitions from Amway according to Amway Sales and Marketing Plan
- needs to renew his\her contract annually, according to the rules and policies specified in the registration form

Member
- can receive this status only six months after he\she has been registered in the company
- purchases products at ABO prices
- has the right to place orders only in trade center, however, he\she can place orders on the website only via his\her sponsor
- has no right to resell products
- has no right to sponsor and develop his\her own business
- needs to renew his\her contract annually, according to the rules and policies specified in the registration form
- can be registered as M+ but only after he\she has purchased “Your Start” Kit for the second time

Establish a Second Business

International Sponsoring
International sponsoring is always an option and an excellent means of expanding your business while avoiding many of the costs and complexities associated with establishing a second business. Please note: For those markets where foreigners are able to establish a second business, they must be the international sponsor of their second business in another country.

Foreign Distributor/ABO Issues
Foreigners (non-Ukrainian citizens) desiring to enter into Contracts with Amway Ukraine must comply with all of the requirements applicable to Ukrainian citizens with respect to the relevant Contract status (ABO or Member Plus). In addition, foreigners wishing to operate as ABOs need to establish local (Ukrainian) residency, and demonstrate a Ukrainian address, or form a local Ukrainian company, and have a local bank account in order to complete all mandatory regulatory registrations.

There are tax and other consequences associated with conducting business activity in Ukraine and these should be reviewed carefully with qualified legal and tax advisors.

Operating as a Member Plus in Ukraine is possible for non-Ukrainian citizens. However, foreign individuals operating as Members Plus in Ukraine may purchase only such limited amounts of products as is consistent with their personal use (i.e. when visiting the market). Sponsorship in Ukraine will be available through the CLOS from an ABO's existing business in other CLOS participating markets in the Eastern Europe Region. Non-Ukrainian individuals who have a business already in a CLOS country and who intend to actively build the Amway Business in Ukraine may personally sponsor in Ukraine and are not allowed to open another business in Ukraine. Any others may either establish a business in Ukraine or Internationally Sponsor.

Immigration Issues
Amway recommends Business Owners consult the Ukrainian Embassy or Consulate closest to their home to determine the appropriate type of visa or permit required for business travel to Ukraine.

Formation and Registration of Your Business
Non-resident foreign Business Owners may establish a second business in Ukraine through registration as Entrepreneurs, Private Enterprises or Limited Liability Companies with certain additional requirements. The form of your business should be based on cost, formality of your organization, taxation, and liability issues.

Amway recommends that Business Owners consult a knowledgeable attorney before establishing a business in Ukraine. When discussing the organizational form of your business, please be sure to consider dissolution costs.

International Sponsoring (from outside of the CLOS region) is an excellent means of expanding your business while avoiding many of these costs and complexities.

Click the link below to display additional details on how to start a multiple business in this market.

Market Framework Requirements

Who Can Order
All ABOs, Members Plus, and Members may order directly from Amway.

Amway Ukraine Ltd. office hours:

Monday through Friday
09:00 a.m. to 05:00 p.m.

PSC hours of operation:

- PSC in Kyiv:
Monday through Saturday
10:00 a.m. to 10:00 p.m.

- PSC in Lviv, Odesa, and Dnipropetrovsk:
Tuesday through Saturday
12:00 to 8:00 p.m.

Method of Placing Orders

All ABOs and Members Plus may order directly from Amway. Orders may be placed:
- in person at your local Amway Ukraine PSC
- via Order Entry department
- via www.amway.ua

Method of Payment

- Payment in full is due with orders.
- Payment methods are cash, credit and debit cards (only in person), bank transfer within Ukraine.

Returns/Refunds

- All customers requesting to return products are to be first serviced by the selling ABO. The ABO will then process the return of the product through Amway Ukraine for their own reimbursement.
- The Amway Customer Satisfaction Guarantee must be honored at all times by ABOs in their relationship with their customers.
- From members Plus, Amway Ukraine will handle any returns directly.

Access Information

Any ABO may request a Line of Sponsorship (LOS) Map which includes the names and numbers of all registered individuals in his/her downline organization down to the first/any downline Platinum(s). If requested, maps can include PV information and addresses. The LOS Maps will be available from the Product Selection Center (PSC) or office for a nominal fee (after being ordered from the Kiev Head Office).

Receive Fee Payment

- All Fees (known as Bonus or Commission in other markets) will be paid directly from Amway to each ABO earning the fee. Fees can only be paid after a signed copy of an “Acceptance Statement for Provision of Services” and proof of your monthly Unified Tax payment is received.
- All monthly Fees will be paid by the 15th of each month. Fees will be paid by bank transfer to the ABO's bank account. Member Plus do not qualify for Amway fees and awards. However, they may participate in the Discount Program. When a Member Plus purchases products for personal use, they can receive a Discount on future purchases.

Renewal Policy

Please note: Renewal is only necessary in one market for CLOS (Croatia, Slovenia, Slovakia, Czech Republic, Turkey, Poland, Romania, Hungary, Ukraine)

Cost/Timing:
ABO/M+ Standard Renewal – 191 UAH
September 1 to December 31

Late renewal – 244 UAH
January 1 to August 31

Member Renewal – 60 UAH
January 1 to January 31

Renewal Methods:
- online, at www.amway.ua (placing order online you cannot pay renewal separately, you need to add proper renewal SKU to your Amway order)
- faxed order 044 495 13 04
- e-mail order orders-ua@amway.com
- PSC

Payment Methods:
Standard order payments to which renewal fee was added