Company Registration in Ukraine

Company Formation Ukraine.com provides all the necessary instruments for company registration in Ukraine such as offering a registration office, opening a banks account, drafting the foundation documents.

 

Quick Facts
Types of companies	Joint-stock company  Limited liability company (LLC) Additional liability company Full liability company
Minimum share capital for LTD Company and Paid-In Requirement (YES/NO)	No mandatory requirement
Minimum number of shareholders for Limited Company	1
Time frame for the incorporation	7 days
Corporate tax rate	18%
Dividend tax rate	15% withholding tax on dividend payments to nonresidents
VAT Rate	20% standard rate; 0%/7%/14% reduced rates
Number of Double Taxation Treaties (approx.)	60
Do you supply a Registered Address/Virtual Office?	Yes
Local Director Required	No, however, foreign nationals need to have a temporary residence permit.
Annual Meeting Required	Yes
Redomiciliation Permitted	Not provided for specifically
Electronic Signature	Yes
Is Accounting/Annual Return Required?	Yes
Foreign-Ownership Allowed	Yes
Any Tax incentives (if applicable)	Small companies and agricultural producers can benefit from a special taxation regime; companies in the aircraft industry can benefit from temporary tax exemptions.

 

The process of company incorporation in Ukraine starts with choosing the proper form of business. The Ukrainian entrepreneurs can chose from the below forms of business.

 

1. Private joint-stock company: it can distribute the shares only among the founders, it can have various numbers of shares and allow shareholders to have different rights;
2. Limited liability company: like for the private joint-stock company, the transfer of shares is limited, however, an important advantage is that the reporting requirements are lighter for this business form;
3. Branch and representative office: the branch is an extension of a foreign company with no legal identity and the representative office can be used only for limited, marketing purposes.

 

Establishing an Ukrainian TOV - Limited Liability Company. In Ukraine the limited liability company is a form of business established by small businesses as the maximum number of shareholders cannot exceed 10 and the provided minimum share capital consist of minimum 100 minimum salaries at the moment of registration. There is no restriction on the amount of authorized share capital.

 

At least half of this capital must be paid at registration and the other half in maximum one year after the registration. The capital of the TOV is divided into shares which are transferable only with the full consent of the company members. The management of the Ukrainian TOV is assured by the general meeting of participants, the Board of Directors and a General Director appointed from the members of the Board of Directors.

 

Other form of Ukrainian company is the Additional Limited Liability Company. The founders of a Ukrainian Additional Limited Liability Company must deliver a contribution of at least 100 minimum salaries and their personal assets can be used if necessary to cover the outstanding liabilities. 

 

A Ukrainian PrAT- private joint-stock company or PuAT-public joint - stock companies are forms of business especially designed for medium and large businesses. Both of these entities must have a share capital of at least 1250 salaries at the moment of registration and the main difference is that the private joint-stock company cannot freely trade its shares to the public while the PuAT-public joint-stock company has its shares freely transferable and can be listed on a stock exchange. The main bodies which govern the joint stock companies are the general assembly, the executive body and a supervision body. The company can be incorporated for an indefinite period, and it is allowed to operate all types of business activities, as long as this is lawful.  Shareholders meetings are expected to take place at least one a year. When a joint-stock company has more than ten shareholders, it is mandatory to establish a Supervisory Board.

 

In General Partnerships created in Ukraine all the members are united under the same economic purposes and share the same responsibilities and liabilities for the company’s debts.

 

A Limited Partnership incorporated in Ukraine is formed by at least one general partner with unlimited liabilities for the company’s debts and one silent partner with responsibilities limited by their contribution to the capital.

 

Incorporation procedure in Ukraine

 

The registration documents necessary for company incorporation in Ukraine consists in two copies of the application form, copies of the company's charter or articles of association, the minutes of the meeting where the decision of incorporation was taken, bank certificate related to the payment of  registration fee and depositing the share capital. As the registration is made through a one stop shop, the registration with the Social Insurance Fund, the Industrial Accidents Fund, Employment Fund and Pension Fund and tax authorities is also made.

 

After applying at the one stop shop and receiving the certificate of registration, the newly established companies must register for VAT with the State Tax Authority.  Also an official seal necessary for all the transactions must be purchased from stationary shops. The last step of registration consists in converting the initial temporary bank account into a permanent one 

 

The Ukrainian District tax authorities will be notified as soon as the permanent bank account is opened and the newly formed company can begin its actions in Ukraine.

 

 

• - 18%: the corporate income tax in Ukraine, a relatively low rate compared to the ones applicable in other European countries;
• - 15%: the withholding tax on dividend payments made by nonresidents; dividends that are received by a domestic company from another Ukrainian company are not subject to tax;
• - 20%; the standard value-added tax in Ukraine, with other lower rates of 14% and 7% and a 0% rate for certain types of goods or services;
• - 22%: the unified social security contribution that is paid on the salary of an employee.

 

 

Situated in a very advantageous area in the Eastern Europe, bordered by the Black Sea, Ukraine is offering great opportunities for the investors who want to start a new company. If you are interested in company formation in Ukraine, you should know that the work force is well trained (for example, Ukraine is included in the top ten locations in the world regarding the IT specialists). The agricultural sector is an attractive one due to the fact that the country has large agricultural potential. Also, Ukraine has great deposits of titanium, zirconium, iron, manganese.