Guide for Company Registration in Ukraine

Ukraine is one of the most recognized countries in the world as far as the market attractiveness for foreign investors is concerned. It ranks highly with 64^th position among other 190 countries when it comes to the ease of doing business. In addition, the government of Ukraine makes huge steps towards simplification of all processes of business registration making Ukraine even more attractive for all prospective foreign investors.

Investors who made up their minds to start their business in Ukraine are subject to certain procedures of company registration. The overall process depends on the business structure of an enterprise.

The most widespread business structure in the country is LLC (Limited Liability Company). There are almost 700 thousand LLC ventures with registrations in Ukraine.

Though LLC is the most popular choice of foreign investors, we must note JSC or joint-stock company as another option for a business structure that accounts for about thirteen thousand companies in Ukraine.

Seven Benefits of Conducting Business in Ukraine

Let us recite and specify the advantages that can make anyone clear mind of doubts and found an enterprise in Ukraine:

1. Big choice of trained labor

There is an availability of skilled workers in any possible branch of labor and selection of the work. Most employees have higher-level academic qualifications.

2. Low level of salaries

Any start-up from the West should take into consideration that there is an abundant choice of skilled labor in Ukraine who do not require the same level of wages in comparison with those in the West. When it comes to the technology sector the country is ready to offer more than 200 thousand IT specialists. Their salaries not in the slightest degree can be compared with those available in Europe.

3. Low competition risks

Ukraine is an excellent choice as far as the level of competition is concerned. In comparison with the rest of the countries in the world, Ukraine is attributed with a low competition that makes the starting positions of your venture high and reliable.

4. Convenient for doing business

According to research, Ukraine has a very high rank concerning the ease of conducting business. Moreover, the country is among the best regarding the time required to start your business, immanent expenses, and the overall process.

5. Simplified taxation treatment

In comparison with the rest of European countries, the tax regime in Ukraine is as simple as it could be. In addition, the government is developing to make taxation procedures even simpler to attract businesspersons from abroad.

6. Lower rate of taxation

The withholding rate in the country is one of the lowest in Europe. Thus, you may take advantage of having access to all European markets and at the same time paying less concerning taxation.

7. Hour zone

All European countries have only one hour of dropping behind Ukraine with the UK that drops behind in two hours. It is important as far as real-time responses are concerned.

‍What Business Structure is More Preferable in Ukraine

Sole proprietorships, limited liability companies, and joint-stock companies represent the three most popular types of business in Ukraine. Let us focus on LLC as the most common type of business structure in the country.

This business structure gives the possibility to involve other concerned parties. In addition, it does not require having a minimum share capital, and allowance for losses is reduced to the volume of enterprise assets. Any LLC is founded by one or several legal entities or individuals. All shareholders of an LLC make a nominal capital by contributions that consist of currency or any type of property. The nominal capital (shareholders’ equity) is split into shares. The income obtained from entrepreneurship activities depends on the volume of the share of every LLC member. At the moment of LLC registration only a citizen of Ukraine has the right to be appointed as its director. In case the owners of a company decide to appoint a foreign citizen as a director of the company, initially they are to appoint a Ukrainian citizen, and after that on behalf of the enterprise, a work permit is obtained, and a foreign individual is employed on the position of the company’s director.

Three Reasons to Choose LLC Business Structure

There are many pros and little cons in every business structure, and taking into account all of them we recommend LLC as the best one among others. The main reasons for choosing the LLC business structure are:

• Easy and quick registration procedures. The process of registration is available through a designated representative within one day and with no charge;
• The absence of minimum nominal capital requirement. Everyone is available to see the nominal capital volume in the venture register;
• Low rate of taxation.

Four Necessary Steps Before Registration

The procedure of registration implies some preparations for it that include four steps:

STEP 1	Individuals who aim to establish a company must obtain identification numbers. A foreign individual may do this on behalf of his/her trustee or accredited representative.
STEP 2	The owners must choose a one-of-a-kind name for their company in Ukrainian language. If so desired, in addition, a name can be selected in a foreign language.
STEP 3	It is required to prepare all documents for registration in Ukrainian language, and in addition, in foreign language if needed.
STEP 4	The founders must determine the legal domicile of the enterprise, which will be mentioned in the application for registration. Moreover, the owners designate the address of the company’s real property, which is confirmed by the company’s certificate of title. In case when the company is located in a business center it must provide a lease contract signed on behalf of the enterprise.

The Documents Required for Registration

The list of necessary documents required for registration includes the following:

• Filled out registration application;
• Decision on the business structure of the company and director appointment. It must be signed by the owners and certified by a notary;
• Company charter must be signed by the owners and certified by a notary;
• In case the founder is an individual, he/she must submit a copy of his/her passport and identification number. In case the founder is a legal entity, a copy of its company charter. All this paperwork must be certified by a notary, in addition, these documents must be legalized or apostilled;
• An apostilled extract from the relevant registry of the foreign company, if the owner is a foreign enterprise;
• Company membership and notarized ultimate beneficial owner passport.