Subsidiaries in Ukraine are forms of business with foreign capital considered legal entities and able to take their own management decisions and perform in a different sector than the investing foreign company.
The most advantageous forms of business in Ukraine, adopted by the foreign companies are the limited liability companies, private or public.
A private limited liability company can have maximum 10 founders and it’s based on a minimum share capital equivalent to 100 minimum salaries from the date of registration. The capital of such company is divided into parts with a size that is regulated by the Articles of Association. The liability of each member is depending on the size of his parts in the company. At registration, the subsidiary must appoint a manager or a board of managers. The general meeting of the shareholders is taking the important decisions.
The minimum share capital of a joint stock company is represented by at least 1250 minimum salaries from the date of registration.
The joint stock companies in Ukraine may be open or closed. The open joint stock is characterized by its transferable shares, registered at the Stock Market. The stocks of the closed joint stock companies are transferable only among the members. Also, a closed joint stock company cannot have more than 100 members. A closed joint stock may be transformed in an open joint stock only if the general meeting of the shareholders is taking this decision 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 management of the joint stock company is formed by the executive body and the observation body.
The process of incorporation of a subsidiary in Ukraine starts with the notarization of the articles of association and the decision of opening a subsidiary.
A bank account must be opened and the minimum chare capital must be deposited. A bank certificate should be provided. Also, a registration tax must be paid at the bank.
The notarized documents, along with the certificate of deposit and the registration fee must be deposited at the Registration Office. After receiving the registration certificate, the Ukrainian company must register at the State Statistics Committee.
The subsidiary incorporated in Ukraine must also pay taxes and VAT so the registration at the State Tax Authority must be performed.
The last steps of registration of a subsidiary in Ukraine are the preparation of a seal, transformation of the temporary bank account into a permanent one and notifying the District tax Inspectorate regarding the transformation.
The process of registration of a subsidiary in this country takes around 24 days.