Company registration in Ukraine

Every entrepreneur or investor is interested in the most efficient implementation of a business project, and everyone is looking for their own ways for this. For some, this is a reduction in the tax burden, for others – the production of popular goods or cheap labor. All these opportunities are available in Ukraine. This East European country with large territories and industrial capacities has a huge potential for growth.
In recent years, the government has been creating conditions for businesses, both regional and foreign, by attracting foreign investment. Many capital owners from the USA, Europe, the Arab Emirates, and other countries create joint ventures here and arrange the export of agricultural and industrial goods. In Ukraine, it is profitable to engage in farming, the production of metallurgical products, consumer goods, and food products. The information technology sector is highly developed. Local IT specialists have a high level of qualification, so many outsourcing companies work here.
Another nice bonus is inexpensive labor. Here you can find qualified workers of almost any specialty. More than 50% of the population has higher education. In addition, the opportunities for relocation of the whole family are immense: renting or purchasing real estate is much cheaper compared to European states, and the cost of education in private schools and higher schooling institutions is low. Many goods and services in Ukraine are more affordable than in Europe and the USA, so living here is profitable from an economic point of view.
The legislation allows company registration in Ukraine for foreign citizens in any sector of the economy. You can set up a representative office and branch of a foreign establishment in any region. There are no strict regulatory measures and requirements to have an office. You can choose any organizational and legal form without restrictions – a limited liability company, partnership, joint-stock company, or register as a private entrepreneur.
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Why do you need to register a company in Ukraine?

Among the advantages of Ukraine company register are large production capacities and qualified human capital. The country is one of the world leaders in the production of agricultural products of iron ore and steel. Over 40 international agreements on conducting foreign economic activity, including the EU countries, have been signed
Industrial parks supported by the state fund for regional development are being created. Startups in some sectors of the economy are exempt from paying VAT and some other taxes. The priority areas for investment include the agro-industrial complex and industry. Thus, agricultural producers enjoy tax benefits and reduced land tax rates.
As for taxation, taxes on employees are only 41.5%, personal income tax is 18%, which is much less than in many European countries. Ukraine has a number of double tax treaties that allow a foreign citizen who owns a business here to choose Where to pay taxes in his country or in Ukraine.
Another nice thing is that you can register a company in just 2 days. There are many electronic services here. Reports to government agencies, for example, tax can be submitted electronically without visiting the Tax Office in person and without sending papers. In general, accounting and tax accounting is quite simple here for companies that operate in unregulated sectors of the economy
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Benefits of fintecharbor.com among registration companies in Ukraine

Fintech Harbor has extensive experience in company formation in Ukraine for foreign investors. Through reliable local partners, we provide services from A to Z in the shortest possible time. We carefully monitor changes in local legislation regarding incorporation and taxation in order to offer our customers the most favorable conditions.
In the beginning, we will meet with you to discuss your goals and objectives and suggest the most suitable form of commercial enterprise organization. After that, our specialists will help to collect the required package of documents. Please note that all papers submitted to government agencies must be translated into Ukrainian and notarized. We will also assist you to do this.
Our counselors will check the name of the firm in the state register and record the registration of a new enterprise. You will receive a package of constituent documents for your establishment within a week. If necessary, we will help to register with the tax office and obtain a certificate of a single tax payer or VAT ID. We guarantee information and consulting support before, during, and after registration at the most reasonable prices.

Popular types of business registration in Ukraine

A foreign citizen can start commercial activities as a limited liability company or as a private entrepreneur. Let’s consider which strategy is the best to choose, and what pitfalls may arise in each case.
Advantages of opening a limited liability company (LLC):
It is worth considering that a limited liability company must have a legal address. Usually, you can register an enterprise at the residency place of one of the founders or rent the address from our law firm. Bookkeeping and reporting are a little more complicated than for a private entrepreneur, but this problem can be solved by a qualified outsourced accountant who will submit all the required reports for a small fee.
Benefits of registering as a private entrepreneur (also known as FOP):
The peculiarity of private entrepreneur registration is that you need a local residence permit or other confirmation of stay, for example, marriage with a citizen and habitation in Ukraine. FOP cannot be sold or transferred to another person. It is also worth knowing that an individual entrepreneur is liable to counterparties with all his property, and not only in the amount of the authorized capital as a legal entity. Therefore, everything needs to be carefully considered when choosing a form of business incorporation.

Steps to register a company in Ukraine

First, you need to select the legal form for the business. Ukraine company registration cost depends on the chosen type (LLC, PJSC, FOP). It is best to pick a limited liability company, as the country has a number of laws to protect the founders. Local legislation requires that a foreign citizen who wants to incorporate a company in Ukraine must first receive an identification code and a taxpayer card. This can be done at the local tax administration. Without an identification number, it will not be possible to draw up a single document at a notary and go through the registration process. To get this document, you must personally visit a government agency and go through the personal identity checkup.
Another feature of the legislation is that a foreign entrepreneur who has recently arrived in the land cannot immediately become a director of a new company. First, you need to get a work permit. Whether there is such a permit is missing, it is necessary to find a local citizen who will be listed as a director of the firm. You can appoint a director temporarily, and when an employment ticket is received, make changes to the composition of the management and submit an application to the state registrar. This procedure usually takes no more than one business day.
Although foreign citizens have a lot of freedom and can work in almost any sector of the economy, there are still some minor restrictions. For example, a foreign resident cannot work as a lawyer, a notary, a patent attorney, or an auditor. In addition, you can not purchase agricultural land in the private property, but you can rent it. If a foreign capitalist sets up an enterprise with an authorized capital of more than $100,000, he officially receives the status of a major investor and can apply for a permanent residence permit.
Stages of business incorporation in Ukraine:
  1. Getting a personal taxpayer identification code for an owner;
  2. Choosing the name of the company and checking it in the state register;
  3. Drawing up the charter and submitting a package of documents to the registrar;
  4. Receiving a company identification code (EDRPOU number) from the Unified State Register of Enterprises and Organizations;
  5. Registering with the tax administration and the pension fund;
  6. Getting a single tax or VAT payer certificate for a company;
  7. Opening a local bank account in national currency and, if necessary, a foreign currency (in euros, dollars or any other).
The bundle of papers demanded by the state authorities of Ukraine is not much different from other countries. As usual, you need to supply copies of the passport of the founders, a document confirming residence, personal taxpayer ID, and a certificate of absence of a criminal record. The remaining applications will be prepared by our qualified lawyers.
After the organization is officially enlisted in the Unified State Register, a record appears available for public viewing. If you know the company’s identification number, its full name, last name, and first name of the director, you can get a detailed extract about the company that will have the same legal force as a document with a seal and signature.

Reviews

Many thanks to the Fintech Harbor lawyers who helped to register the company in Ukraine. Everything went very quickly and smoothly. We spent a minimum of time and were able to start working officially.
Our holding expands in Eastern Europe, and we wanted to set up an official representative office in Kyiv. We contacted Fintech Harbor and received full assistance in this matter.
I am very grateful for the high-quality advice on tax issues. Ukraine is indeed an attractive country, but I did not know at all what to expect in terms of taxation. Lawyers helped me choose the best scheme for structuring the business and arranging food exports.

FAQ

All data on legal entities and private entrepreneurs registered in the country are available for public access. Information is available on the official state resource of the Ministry of Justice https://irc.gov.ua/ru/reestr_edr. The website of Ukraine business register works in Russian, Ukrainian, and English. You can check your counterparty and get a short free reference or pay a small commission of around $3 and get all the detailed information.

The free certificate includes details about the name of the particular establishment, the surname of the director, types of activities, and the date of registration. You can also find out if a firm has a tax debt and what form of taxation it has. The extract contains the address of the business and the method of communication, usually, telephone numbers and e-mails are indicated.

A paid statement is a detailed written document that comprises the entire history from the beginning of the registration of the party. You will receive facts about the founders, the types of activities of the tax office in which the company is registered, and find out if any changes have been made.
Yes, you can establish a business in this country regardless of your citizenship and address of residence. To make an entry in the Ukraine commercial register, a personal visit to the country is needed. But then you can manage your business from anywhere in the world. Opening a corporate bank account also requires personal presence, however, you do not have to permanently reside in this land if you do not want to. If you are planning to acquire citizenship, you can invest from $100,000 in the authorized capital of the firm and become a major investor. We will help you choose the best form of doing business and taxation in this country.
Yes, it is an attractive country for commercial activities. There are many opportunities in many areas of the economy. Of course, it has its own peculiarities, as elsewhere, therefore, qualified legal assistance is needed at the stage of registration and in the process of managing a company. In recent years, the government has done a lot to minimize corruption and improve business transparency. Now there are many digital services available that greatly facilitate the workflow. Also, an inexpensive standard of living and comfortable conditions in large cities make it a pleasant place to live.