From 2014, the Ukrainian government took a step of laying down serious measures which could assist it to improve its investment culture. Some of these measures are:
It eliminated many of the administrative barriers which hindered many business activities.
It reduced the authorisation capital, amount of time and procedures required for opening a new business.
It also reduced the cost of obtaining different authorisations.
Eliminated compulsory registration for the investment.
From January 1, 2014, the income tax was reduced to 18% and the value-added tax rate was reduced to 20 %.
In the Year 2013, the Cabinet ministers in Ukraine developed a program which was aimed at activating the economic development for the economy to be restructured and industries be modernised.
Specificity of the registering
Some of the details that you must present during the registration of Limited liability company in Ukraine are:
Name of your company
Details of the members (their full names, passport numbers and citizenship)
Type of business that you wish to do
Amount of share capital
Name of the bank that you’ve chosen in Ukraine and the type of account that you’ve opened
Registered address which there’re 2 types that you can choose:
This refers to an office which has a secretary who is able to confirm if the executive body of the company is available at its offices. This secretary is also able to receive phone calls and emails which are addressed to the company and offer archive storage.
Standard legal address
This type of address is mainly used in matters concerning registration. The virtual office service is usually expensive compared to the standard legal address.
Company formation in Ukraine in form of Limited liability will take approximately 1 to 2 working days. You should not forget the additional time that may be needed in the translation and execution of the important document.
The registration of branch/representative offices takes about 60 to 90 days. However, if you wish this period to be reduced, we can offer you such a service for an additional fee.
Ukrainian or foreign citizen can be appointed as the CEO of your company. It’s good for you to know that the Ukrainian law has provisions which are meant in protecting the domestic labor market. So as to observe this law the government of Ukraine has set out some annual quotas for the foreigners who wish to work in Ukraine such as the company must get an appropriate work permit for this foreigner.
However, if it’s not possible for you to appoint a foreigner as your general director especially during the initial stage of registration, then a Ukrainian citizen must be appointed as a replacement. There’re also other reasons which may make it mandatory for the CEO to be present in Ukraine such as signing of the important documents of the company or interacting with the customs/ tax authorities to be able to understand the Ukrainian tax system. Due to such reasons, we do offer a nominal CEO. If you wish to use such a service you must be doing legitimate business transactions.
Every legal entity in Ukraine is required to confirm annually (usually at the 13th month) that it’s still in operation by filing in a special registration form. In this case, the tax authorities will send a notification message in time to all business entities. In case the letter will be returned back without being filled then such companies will be placed into a list of Unreliable and then it’ll take some active measures in finding such entities. In case the company fails to provide the state authorities information on their address, there’re other consequences that the company can face such as cancellation of its VAT certificate.
Types of company
Some of the types of businesses that you can do in Ukraine are:
Limited liability company
LLC is one of the popular types of businesses that you can start in Ukraine. If you wish to start such kind of business, it’s vital to form a share capital. Currently, there’re no minimum requirements on the minimum amount of share capital that you require for limited liability company. One of the best benefits of this type of business is that the participants have limited liability in terms of their contributions. In this business, the legislation of Ukraine outlines out limits on the number of participants who must be less than 100.
Joint stock company
In this case, you’ll realize that there’s a division between the private and public joint stock company under the Ukraine legislation. The minimum charter capital is approximately $ 179,218.
After you’ve chosen the best type of business, you must sort out many variants of your company name. The reservation of the business name is a procedure that you must take so that your company name is unique. The corporate businesses which have foreign members can use foreign company names so as those names are transliterated in Ukrainian and national languages.
The branch/representative offices and corporate entities are entitled to use some words such as Kiev, Ukraine or their abbreviations as the company names.
We can also organize for registration of your company in Ukraine even when you’re not present through the power of a attorney.
It’s also important for you to know that when you’re registering your company you can open your business entity account with the local banks in Ukraine in Hrivna, US dollars, Euros. We can also help you in setting up Ukrainian accounts for your company abroad.
To find out more information, fees, procedures on company formation in Ukraine, please contact our specialists.