Rich culture and stunning views are just some of the many perks of setting up a business in Ukraine. Foreign investors looking to diversify out of their own jurisdiction often turn to this Eastern European country. Ukraine offers a strategic location, owing to the fact that it shares borders with several EU countries, and can help you expand your business’s market elsewhere.
The country is an emerging investment hub, exporting items such as agricultural goods and metals. However, a wide range of sectors offer viable investment and business opportunities. These include food and beverages, pharmaceutical products, and manufactured basic metals.
Minimal taxation rates, a simplified financial and taxation system, and a large, highly-technical workforce awaits you in Ukraine. If you’ve been considering setting up a company in the second largest European country, CompyCo can assist you.
We’ll walk you through every step of the journey, offering guidance and support to help you meet your business goals. As a liaison between you and our various Ukrainian contacts, we’ll be your sole point of contact to make the process seamless and easy.
Forms Of Companies In Ukraine
- TOB – “Товариство з Обмеженою Відповідальністю”—Limited Liability Company
- “Акціонерне товариство”—Joint Stock Company
- “представництво”—Branch/Representative Office
What is the difference between limited liability company and representative office?
In Ukraine, most foreign investors opt for limited liability companies. However, setting up a representative office is also a popular choice.
While limited liability companies can be set up within 5 working days, branch/representative offices may take up to 6 weeks to be completely set up.
The minimum share capital required by limited liability companies is €1, while representative offices don’t require a share capital. The share capital doesn’t have to be paid up. It is only stated in the corporate documentation.
Fundamentals Of A Limited Liability Company
|Corporate tax in Ukraine||VAT in Ukraine|
Fundamentals of limited liability companies in Ukraine
|Limited liability company|
|Minimum Share capital||1 EUR|
|Registered office required||Yes|
|Physical office required||No|
|Min. number of Shareholders||1|
|Min. number of Directors||1|
|Local Director required||No|
|Bank signatory must travel||Yes|
|Timescale for company formation||5 working days|
|Timescale for bank account opening||2 weeks|
|Timescale for obtaining VAT number||1-2 weeks|
|Statutory audit requirements||No|
|Shelf companies available||No|
How can I set up my company in Ukraine?
It can be daunting to set up a company that is outside your jurisdiction. CompyCo will make the process easier for you by handling the paperwork and registration processes on your behalf.
The process of setting up a company in Ukraine involves the following steps:
- We work with you to determine the best company type for you. Our experienced team conducts all due diligence and determines a project plan to move forward with.
- The entire registration process can take between 2 to 21 days, depending on whether your company needs to be registered for VAT.
- You’ll have to decide on a company name and its Ukrainian translation. After the name has been registered, we can move forward with the bank account and company registration.
- Once the Articles of Association is drafted, your business registration certificate will be the next step. The incorporation process will be completed with the State Registrar.
- Ukrainian law requires a company seal for all businesses. We can help you prepare one.
- Once the initial incorporation process is complete, we’ll apply for VAT and corporate tax registration.
- We can register your company remotely, but if you chose to have bank account in Ukraine physical bank, travel will be mandatory.
If you’re looking to break into the Eastern European market (trade with Russia), Ukraine can act as your gateway to success. The country’s favorable business climate allows several international businesses to set up and start their operations fairly easily.
CompyCo is dedicated to providing cost-effective, tailor-made solutions that are customized to your needs. We’ve helped businesses set up in Ukraine over the years and are familiar with the processes involved.
Leveraging our network of experts, we’ll work with some of the most experienced individuals in the banking, incorporation, and taxation sectors. We’ll be your sole point of contact throughout the process; this means you won’t have to worry about handling the logistics of the process in a different country.
Our goal is to offer you the maximum benefits at the lowest cost. You just need to focus on your business’s operations, we’ll handle the rest!
Bank Account Opening
When you set up a business anywhere in the world, a corporate bank account is necessary to streamline your financial transactions and operations. Ukraine’s financial sector primarily consists of locally-owned financial institutions where you can open a corporate bank account.
Along with a variety of financial services that you’ll need along the way, these bank accounts provide online banking in English and are generally less strict in their policies. This means it’s relatively easy to open a bank account in Ukraine.
However, depending on your business’s activity and your original country of residence, you may have to choose the most ideal financial institution for your needs.
Some of the common requirements of each bank are:
- A Ukrainian tax identification number
- Residential address as proof
- Your passport and its translation
In some circumstances, you might be able to open your account remotely without having to travel to Ukraine.
Need more information about opening a bank account? Head over here.
Accounting & Taxation
Here are a few accounting and taxation obligations to take into consideration:
- Ukraine’s fiscal year is the same as its calendar year
- Taxable profits are investments, trading profits, and selling assets for more than their original cost
- All businesses need to keep accounting books
- In Ukraine, the current VAT rate is 20%on most goods and services. Exceptions apply
- The corporate income tax is levied at 18%
How can you employ staff in Ukraine?
A well-trained, value-adding workforce is essential for a business in any sector. However, finding the right employees in a foreign country can be difficult, especially if you don’t speak the language there.
CompyCo can assist you in meeting your employment needs. We work with experts who specialize in the fields of human resources and employee recruitment in Ukraine. This network of experts allows us to help you find the best employees who’ll add value to your company.
Working with our talented team, you’ll be able to enjoy full-service solutions that comply with local regulations and meet your company’s changing needs. Our custom solutions include recruiting new talent, drafting employment agreements, ensuring business compliance with Ukraine’s law, and ongoing payroll services.
Ukraine offers a vast, highly-skilled, and low-cost workforce that offers technical expertise in various sectors. Utilizing our HR solutions ensures you work with some of Ukraine’s best.
If you only need to employ a person in Ukraine to work from home, we can even help you avoid local company registration as an employer.
Have any questions? Take a look at our HR services page for more information about our International HR services!