Company registration in Ukraine

Advantages of Ukrainian jurisdiction

1. Residents and nonresidents of Ukraine, that is, each of the citizens of Ukraine and citizens of other states, both may own equity rights of a Company registered in Ukraine and be its founder.

2. By setting up a Company it is not necessary to form the Charter Capital of the enterprise. It may simply be declared in the foundation documents. The minimum size of the Charter Capital is not provided. The owners of the company such as Limited Liability Company have an accrued obligation on the formation of the authorized capital after one year.

3. Bank service rates for a company in Ukraine is much lower than banks rates in Europenian countries. Internet banking service fee is 4 Euro per month! In contrast, some European banks for similar service overcharge up to 100 euros per month.

4. Ukraine currently offers several types of economic tax systems, which you can select under your activity. Let us review briefly the characteristic of corporate persons and Companies tax system in Ukraine.

The organizational and legal forms of companies

1. Joint Stock Company (JSC) - a commercial association with the Charter Capital divided by shares of the same nominal value, and under the law it must be at least equivalent to 1250 minimal wages at the time of registration. This form is used for the establishment of large business with a large number of shareholders. Shareholders are not liable for the JSC obligations with all their property, but bear the risk of losses to the extent of the value of their shares.
Private Joint Stock Company (PJSC) can carry out only private distribution of shares and public joint stock companies (PJSC) - can carry out the distribution of shares also on stock exchanges and have an unlimited number of shareholders. Establishment and registration of the JSC takes a lot longer than of the other structures of Company.

2. Limited Liability Company (LLC)
The minimal Charter Capital of LLC is not legally defined, but it must be created within the year from the date of registration. The Charter Capital is divided into shares, which size is determined by the Articles of Organization, and which can be created not only of money, but also of the property. Participants constitute the supreme governing body of LLC, it is a founders meeting, which controls and limits the executive body of the Company.
It is LLC that is most widely-spread in Ukraine. So far, such form of the business activities realization as Limited Liability Company is the most appropriate. Shareholders are liable for the LLC obligations under their shares.

3. An Individual Entrepreneurs (IE)
In order to carry out business activities, one must either create a Legal Entity, or to register as an Individual Entrepreneur. The latter is the only way of conducting the business without a Legal Entity creating, and it is the simplest scheme each of after the requirements for registration and implementation of activities, and monitoring by the state.
IE should be registered according to the place of residence. There is no requirement to have a Charter Capital, the stamp, the current account, as well as informality of accounting and the minimum number of documents for registration that are among other facilities.
The increased responsibility is the main disadvantage of such organizational legal form. IE is liable for his business obligations with all his property. Foreigners who are registered as IE can only work according to a common tax system, that is less acceptable for the business.

4. Privately-operated Enterprise (PE)
Privately-operated Enterprise is one of version of a legal entity establishing. It could be established by one or more participants. The delimitation of responsibilities of the Company and the participants is the greatest advantage of such organizational legal form. Other words, in contrast to the Individual Entrepreneur described above, the founders-individuals are not liable for the PE obligations with all their property.
The bare fact that the legislation does not specify either minimum amount of a Charter Capital or the period of its introduction is the PE. In effect, this means that one can create a Charter Capital for his PE in the amount even 10 UAH, and to introduce it at any time.
The main defect is that this business activities realization is legally unresolved. Therefore, in practice, many questions arise about the participants' rights inheritance, separation between the conjoints, etc.

5. Non-profit (non-for-profit) Organization is a Legal Entity, which main purpose is not receiving a profit, but the implementation and observation its goals and objectives, which do not contravene the current legislation of Ukraine.
The main activities of such organizations: the provision of charitable assistance, educational, cultural and other similar services for public consumption. Non-profit organizations can be created in the form of social or religious organizations, social, charitable and other foundations, associations and unions, and other forms.
Non-profit organizations can be registered as legal entities and unincorporated. In the case of registration with no legal personality, it is sufficient to legalize the organization in the judiciary. In the case of registration of an organization with legal personality, should be carried out in addition to the legalization of the organization is registered in the state administration at the place of work.
As for other legal forms, they are relatively rare.

Brief description of a Ukrainian company

Articles of incorporation. The Articles of incorporation disclose the main directions of activity of the enterprise is determined by the size and the formation of the Charter Capital, the order of the general meeting of the founders, the voting, the decision-making by the general meeting, and others.
Extract. A certified copy of an entry of companies registered on the territory of Ukraine contains basic information about the company: name, date of establishment, registration code, legal address, activities, information about the director, information about registration in government agency.
The founders (shareholders) of the company: any natural or legal persons, including non-residents of Ukraine.
Charter Capital. The minimum share capital is not provided. Capital venture does not need to be paid before the registration procedure. It may simply be declared in the constituent documents, and is formed at a certain time, for LLC - to one year. The capital can be paid by cash contribution (in cash or by transfer to the account of the new company) or by non-monetary contribution - assets.
Administrating authorities. Company's administrating authorities are the general meeting of founders / shareholders (for LLC / JSC). The executive body is the director (directorate), which operates on the basis of Articles of Association and legislation of Ukraine.
Activities Director directly subordinate to and controlled by the general meeting of the company's founders.

Additional advantages for doing business in Ukraine

• strategically advantageous geopolitical location;
• developed transport infrastructure - railways, ports in the Black Sea Pan-European Transport Corridors;
• presence of a large local market, a high level of qualification of labor resources;
• significant industrial and agricultural potential;
• Ukraine is a growing market in the field of metallurgy and the agricultural sector;
• a modern legislative framework that protects investments;
• a variety of legal forms of companies are similar in organizational and legal framework with the EU countries and the CIS;
•existence of agreements on avoidance of double taxation (over 30 countries).

The most attractive areas of investment:
• the agricultural sector, agriculture;
• hospitality;
• building activity, real estate;
• health sector;
•light industry;
• shipbuilding, mechanical engineering, aircraft;
•chemical industry;
• the financial sector;
• transport infrastructure;
• the other activities.

Taxation

The tax system is an important factor in the choice of the legal form of doing business. Legal entities and natural persons-entrepreneurs have the right to choose the most cost-effective mechanism for payment of taxes.
Currently, the tax system of Ukraine provides for the two forms of taxation - general and simplified.
A simplified tax system is divided into 4 groups, viz.:
Group 1: individuals - entrepreneurs with annual turnover of up to 300 thousands of UAH, without the right to hiring, who provides domestic services to the public and trade on the market with a single tax rate from 1% to 10% of the minimum wage (the minimum wage).
Group 2: individuals - entrepreneurs with annual turnover of up to 1.5 mln of UAH, entitled to hire up to 10 employees, providing services to both the public and other simplistic, as well as active in restaurant business with a single tax rate by 2% up to 20% of the minimum wage
Group 3: individuals - entrepreneurs and businesses with an annual turnover up to 20 mln of UAH, with no limit on the number of hired employees and the right to choose the tax rate on the basis of VAT, namely 2%, provided registration of the company for VAT or 4% - during the reading of the amount of VAT in the single tax;
Group 4: agricultural commodity producers, meeting the requirements of the Tax Code.

General system of taxation
Individuals - entrepreneurs. The absence of restrictions on the activities, the number of salaried employees and the size of the income is the undeniable advantage when selecting the overall tax system for individuals - entrepreneurs. However, among the disadvantages one should include mandatory use of cash register (CR) in the management of cash payments and 34.7% of the ERU monthly net income.
Legal persons. Since 1 January 2015 the income tax rate - 18%; reporting period - quarterly, or yearly. If the entity is a VAT payer, one must remember that the VAT reporting is monthly and that the tax invoice should be registered in the Unified Register of tax bills. A separate subgroup of legal entities on a common system of taxation are so-called "beneficiaries", which until January 1, 2016 subject to income tax at a rate of 0%. This subgroup can be assigned business entities that meet the criteria of Article 154.6 of the Tax Code of Ukraine.

Firms in Ukraine, with VAT

The "ready-made companies with VAT number" refers to the legal entity that is registered in the State Register of Ukraine as active with a complete lack of financial or tax debt. This Ready company has a name, legal address, the founder (can be both physical and legal persons), in the statutes for a complete list of economic activities, there is registration for VAT in the tax authorities, there is a firm seal.
Ready-made companies are registered with a view to their subsequent sale, and sometimes it happens that the VAT number received, but operations are carried out. The first category includes companies that do not conduct business activities and which registration is not carried out. Such firms don't have the transaction concluded.
Company "A-LEX GROUP" is responsible for the pre-sale "purity" of such companies. Ready-made companies have absolutely no obligations, accounts-receivable missing. Reporting is conducted and reports about the company rented a timely manner.
Any company with a history that have VAT number, and at the moment do not conduct business. There are also a newly created companies with ready VAT number.
There is a category of ready-made companies that are sold by our customers. At the time of the transaction and the signing of the contract of sale of such finished firms with VAT number, company "A-LEX GROUP" checks the status of the company, takes from the previous owner of the confirmation (warranty receipt), which indicates that they are fully guarantee the absence of any creditor and debit indebtedness.

Registration of the new owner of the VAT company. The representative of the company "A-LEX GROUP" together notarially draws up a contract of sale of corporate rights, the report on the change of ownership and a new charter with you on the basis of a power of attorney issued by you. After this, the documents are transferred to the State Register for respond changes and after 3 days information about the new owner of the company.
If you need the company on a common system of taxation, we can also arrange for you an acquisition of such businesses.
In case of interest in buying ready-made company, send your request to our contact e-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.

Legal address

Company "A-LEX GROUP" offers a legal address in the city of Odessa and other Ukrainian cities.
The cost of legal address in Odessa and other cities of Ukraine and the contract price depends on the requirements regarding a particular area and other factors.

Services Assistant / Secretary

Company "A-LEX GROUP" offers a range of services to support your legal address and business activity of a company in Ukraine:
1. Answering calls and mail receiving from your customers and the tax authorities and other organizations.
2. Selection, scanning and transfering to your e-mail in accordance with the criteria established in advance, received to our e-mail for your company.
3. If the call can not be redirected, the client leaves a message and contact details to our secretary, who will forward it to your client, or forward to an appropriate specialist.
For more information about the Secretary service you can learn by calling us or make a request using the contact form under Request.

Prices
 

1. Registration of the new company for non-residents of Ukraine

With  personal presence.

from 6000 UAH.

The cost of registration of the company includes the following services:

• consultations on the incorporation of the company in Ukraine;

• development of constituent documents in Ukrainian;

• checking the name of the company;

• notary fees;

• payment of state duties;

• obtaining certified documents in the public registry - statutes, extract, registration with the tax authority

companyseal

 
Additional service:
 from 5000 UAH. 

2. Nominee maintenance services per month

(if needed)

 Nominee Director
 
3. Legal address per month  by agreement 

4. Secretarial  services per month

(e-mail receiving and transfer, answering calls)

by agreement 
5. Apostille (legalization) of documents (set of documents)  by agreement 
6. Translation of documents (in English, Ukrainian and other languages)   by agreement 
 

7. Preparation and submission of application for VAT number

by agreement 

8. Changes in the State Register

(separately charged state  duties, notary fees, documents translation).

 from 600 UAH.
9. Company audit by agreement 

10. Opening accounts in Ukrainian banks

(presence of  customer required) 

from 600 UAH.

(the cost of key,  electronic access to the Internet banking are paid separately in the bank) further service according with the bank's tariff

 

 Register your company in Ukraine.

We work according to a contract