Opening a company and running a business in Ukraine

The issue of opening a company by foreigners in Ukraine is quite important, despite the difficult situation in the country. Foreigners can be found in all areas of business – in trade, in the provision of services, in the field of fast food. Everyone is active in Ukraine, and therefore they pay taxes and are controlled by the state, this also applies to entrepreneurs who are citizens of Ukraine. In this article we will describe how to go through the procedures required to conduct business in Ukraine in the shortest possible time. At the beginning, we suggest considering the advantages and disadvantages of doing business in this country.

The advantages of opening a company in Ukraine

What attracts foreign investors and businessmen to establish a company in Ukraine?

– Ukraine is becoming friendly to the European market and begins to simplify the process of running a business

– Clear market potential

– There are many useful resources in the country

– Existing access to the sea, which simplifies trade

– Good communication network due to the proximity of EU countries

– Relatively cheap workforce

– Low energy costs

What is needed to open a company

In order to open a company in Ukraine, it will be necessary to prepare a package of documents and choose the organizational and legal form of conducting business. It should be noted that before starting the registration procedure for a legal entity, you must obtain an identification number or a taxpayer’s card, without which it will not be possible to issue documents from a notary public, and without it the company’s registration process will be invalid.

Ukrainian legislation provides a wide range of legal forms of doing business, here are some of them:

1. Individual entrepreneur. This is one of the simplest forms of business. He is responsible for all obligations related to running a business with all of its assets, does not require a company card and is not a legal entity, it does not require a legal address.
2. A limited liability company. The target capital of this company is divided into shares specified in the founding document. LLC participants are not responsible for their ownership. The statutory capital may amount to 1 UAH.
3. Joint Stock Company. An economic entity with share capital divided into a specified number of shares with the same face value.

It is worth noting that many lawyers advise to choose the creation of a limited liability company, because it is considered the most stable form of business organization in Ukraine. On its basis, a clear legal framework has already been developed for existing regulations protecting entrepreneurs.

Company registration

Here is a list of documents to be completed in order to register a company in Ukraine:

– Power of attorney certified by a notary public that a non-resident has the right to sign the documents necessary for registration, including the card

– A copy of the passport, translated into Ukrainian, signed by a translator and certified by a notary public

– A copy of the identification code

– Information on the types of activities in which the company intends to engage a clearly defined area of ​​activity

– Share capital

– A type of executive body such as a board of directors or an individual director with full powers

– Form of company taxation

The state registration of a legal person will require an additional set of documents, which will consist of the following elements:

– Completed application form for the registration of a legal entity (provided to the registrar)

– Card (provided to the registrar)

– Decision or report on the creation of the company (provided to the registrar)

– Letter appointing the company’s director (remains with the owner)

– Company / business name should be in full and abridged version in Ukrainian and English

– Company headquarters – legal address (purchase or rent)

The document package requirements may vary. It should be noted that after the creation of a legal entity, it will be necessary to obtain a certificate from statistics, register with a tax inspector at the company’s opening location, open a bank account, obtain a seal, designate a company’s chief accountant and draw up accounting rules.

The process of creating and registering a company in Ukraine can last from 2 to 7 days. The brokerage services for assistance and creation of a company in Ukraine cost from 450 euros.

Taxes in Ukraine

The rates of main taxes and fees in Ukraine are as follows:

1. VAT -20% (flat rate for all)
2. Corporate income tax – 18% rate
3. Income tax on individuals – basic rate 18
4. Deductions for social and medical insurance – 22% of the wage fund
5. Real estate tax – 1.5%
6. Dividend tax – 5%