If you want to do business in Ukraine, you first need to know about the specifics of business incorporation.
Most companies in Ukraine incorporate as a limited liability company (LLC). One can establish an LLC in Ukraine with 100% foreign capital.
In addition to a legal entity, private businesses can also be registered in Ukraine, but they require a residence permit. In this case, the tax rate is 5%.
Features of the LLC form
|Taxation||18% on profits. You can learn more about the taxation of companies in Ukraine in the article titled Accounting and Payment of Taxes.|
|Employment of non-residents||Allowed if permits are obtained|
|Regional structure||The establishment of branches and representative offices is allowed|
|Residence permit||Not required for LLC incorporation|
Before you incorporate an LLC, you must obtain a taxpayer identification number (TIN), otherwise you will not be able to process documents through a notary.
The advantages of an LLC:
- Ukraine has a database of laws for this legal form, which protects the foreign founders of a business.
- You do not have to obtain a residence permit and residence registration to incorporate an LLC, unlike an SP.
- It provides you with the option of convenient tax planning and company structuring.
- It gives you the opportunity to resolve issues without too many formalities.
In order for a foreign entrepreneur to become the head of his/her LLC, he/she needs to obtain permits for employment in Ukraine in advance.
Documents required for the incorporation of an LLC
- A copy of your passport signed by the translator.
- A copy of the taxpayer identification number (TIN) which can be obtained from the tax service of Ukraine.
- Information about the company’s business, the amount of charter capital, and accounting for the future financial turnover of the company.
If you want to obtain the documentation and incorporate an LLC independently, you would need to fly to Ukraine for 2–3 business days. If you do not have this opportunity, you may issue a notarized power of attorney granting your lawyer the right to sign the charter and register the documents.
To incorporate an LLC with all the required documents, you can contact a notary or an administrative service center.