An investor may choose from different types of business in Ukraine: the limited liabilities companies, the joint stock companies (open and closed), the additional limited liability companies and the partnerships (general or limited).
The companies’ activities are regulated by the Law on Economic Association.
The limited liability company (TOV) has a minimum share capital equivalent to 100 minimum salaries from the date of registration and may be registered by at least 1 natural person and maximum 10 founders. At registration, is necessary to appoint a general manager and if desired, a board of directors. The main decisions are taken by the general Meeting of the Shareholders.
The capital of such company is divided into parts, not shares like in a traditional LLC. They size of the parts is regulated by the Articles of Association. The responsibility of each member is depending on the size of his parts of the company.
The additional limited liability company is also based on a share capital of 100 minimum salaries (at the moment of registration) but in addition, the shareholders are liable with their own assets to the company’s debts.
There are two types of joint stock companies in Ukraine: open (PuAT) and closed (PrAT). The open joint stock companies have transferable shares, registered at the Stock Market unlike the closed joint stock companies that have transferable shares only among the members. A closed joint stock may be transformed into an open joint stock company only if its shares are registered at the Stock Market and the company’s charter is changed. The capital of the joint stock company is divided into shares and the member’s liabilities depends on the number of own shares.
The minimum share capital of a joint stock company is the equivalent of at least 1250 minimum salaries from the date of registration.
The main decisions of a joint stock company are taken by the general assembly which is formed by all the company’s members. The general assembly must choose the executive body and an observation body (which will supervise the executive’s body actions).
A general partnership in Ukraine is formed by at least two partners, fully responsible with their own assets for the company’s debts. The partners are entitled to divide the profits among them and equally take all the management’s decisions.
A limited partnership in Ukraine is formed by at least two partners, the silent partner and the general partner. The general partner is fully liable for the company’s debts unlike the silent partner, liable only in the extinct of he’s contribution. Another difference between them is that only the general partner may take the management decisions.