Open Company in Ukraine - 2022 Guide

Opening a Business in Ukraine

Updated on Monday 28th February 2022

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Opening-a-Business-in-UkraineUkraine is one of the largest countries in Europe and it offers plenty of opportunities to those interested in starting new businesses or expanding existing ones. Local and foreign investors who want to open companies in Ukraine must go through several procedures which are easy to complete, but most importantly, will enable them to operate on a fast-growing market.
If you want to open a business in Ukraine and need assistance, our lawyers are at your disposal with tailored services, so you can benefit from a quick and correct company registration procedure. You can also rely on us if you are foreign citizen and want to move here by starting an enterprise.

The main types of entities for investor who want to open a business in Ukraine

Ukraine is an open country when it comes to foreign investments and entrepreneurs from various parts of the world will benefit from equal treatment when it comes to opening companies here. According to the national legislation, there are several types of business forms these can employ in order to conduct operations in Ukraine:
  • the sole proprietorship which is intended for single business owners who can engage in professional activities, such as medical practitioners and accountants;
  • the partnership which is a great way of exploring the Ukrainian business environment alongside a partner;
  • the private limited liability company which is the most advantageous way of starting a business in this country;
  • the public limited liability company which is suitable for large projects.
Foreign companies can also expand their operations in Ukraine and the subsidiary and branch office are the two main ways through which these can make good profits. Foreign business owners interested in first prospecting the market can set up representative offices through which they can explore and even create business associations for their future endeavors.
Our law firm in Ukraine is at the service of foreign and local investors interested in exploring this interesting business market and who decide to open company in Ukraine.

How to prepare to start a business in Ukraine

In order to avoid setbacks, it is worth noting a few aspects one can consider before starting the company registration process with the Ukrainian Trade Registrar. Among these, here are the most important:
  • the trading name – all companies (except for sole proprietorships) must have unique names which can be verified before registering the company;
  • the legal address – it is a good idea to secure a registered address before incorporating the company (initially, the virtual office can be a suitable solution);
  • the corporate bank account – this the lengthiest procedure when opening a company which is why after drafting the registration documents, the business owner can file the papers for opening the account.
Foreign investors can consider an additional step and that is to obtain a residence permit and through it relocate to Ukraine.
Our lawyers are at the service of those who want to start a business in Ukraine here and provide assistance throughout the entire incorporation process. Moreover, some of the procedures can be handled by our team before the business owner’s arrival.
Our lawyers can also help you apply for Ukrainain citizenship by investment.

Business registration steps in Ukraine

The following steps need to be respected if you want to open a business in Ukraine (provided that the owner has all the documents in place):
  1. filing the papers with the Trade Register in the city the business will operate in;
  2. obtaining the tax identification number and the VAT number (VAT registration is voluntary at the beginning of the operations);
  3. applying for the necessary licenses, depending on the industry to operate in.
Our Ukrainian lawyers can help you if you want to start a business in Ukraine in accordance with the selected type of legal entity and the industry it will carry out its activities in. We are also at your disposal if you want to apply for permanent residence in Ukraine.

How easy is it to set up a business in Ukraine?

After choosing the form of business desired (TOV -limited liability company with obligate charter capital, PP - limited liability company without obligate charter capital, TDV- additional liability company, PrAT- private joint-stock company, PuAT-public joint-stock company, general or limited partership) and filling the necessary documents for registration, the whole process of incorporation in Ukraine don’t take longer than three weeks.
The applicant must also know that there are some minimum share capital requires for certain types of businesses opened in Ukraine, for example a limited liability company must deposit the equivalent of at least 100 minimum salaries, while the joint stock companies created in Ukraine must provide a minimum share capital of 1.250 minimum salaries.
We are at your service if you want to open a company in Ukraine.

How easy is it to hire personnel in Ukraine?

The process of hiring personnel in Ukraine is not very complicated for the local entities, while the employment of foreign entities requires a work permit, which can be obtained from the Employment center if certain documents are deposited. These documents are: a certificate of payment of the application fee, the completed standard application, two color photos of the applicant, a written declaration of the need to hire a foreigner (along with a proof that the employer can provide the necessary conditions for living here), a certificate from the state tax authority showing that the employer has paid all its mandatory payments, a proof from the Employment Center proving that the employer has no debts to the Unemployment Fund, a copy of the employment contract certified by the employer, a statement which proves that the position in the company not require Ukrainian citizenship and don’t need access to state secrets, a Ukrainian police clearance certificate, a certificate from the authorized body of the country of origin or temporary residence showing that the foreigner is not under criminal investigation or serving a criminal sentence, a certified copy of the employer's certificate of registration and statute, a copy of documents showing the foreigner's education and qualifications, a copy of the foreigner's passport.
If the work permit is not received from the first attempt, the applicant must wait a year before reapplying. We can guide you if you are planning on moving to Ukraine.
We are also at your service if tyou want to open a company in Ukraine.

What are the main points of interest for foreign investors?

Because of its position in the Eastern Europe, bordered by the Black Sea, Ukraine is considered a gate to the European markets. The most developed sectors are the agriculture, due to the fact that 30% of the world soils are possessed by it. The deposits of titanium, zirconium, iron, manganese are also attracting the industrialized foreign companies. This is also one of the greatest reasons fi you decide to open a company in Ukraine.
The fiscal policy is also encouraging the investments as the corporate tax of Ukraine is one of the lowest in Europe.
Besides the double tax treaties signed with more than 63 countries, a free trade agreement was signed with Russia, one of the biggest economic powers of the world.

What are the advantages of a holding company in Ukraine?

The major advantage of the holdings companies if that company owns more than 20% of the shares.in Ukraine is that the dividends received from it are not subject to the 15% taxation.
If you want to open a company in Ukraine as a holding, we can help you.

Tax considerations if you want to open a company in Ukraine

The taxation system in Ukraine is supervised and regularized by the State Fiscal Service. Here are the main aspects to consider from a taxation point of view when running an Ukrainian business:
  • the current corporate tax rate is 18%;
  • the standard VAT rate is 20%, however, a lower rate of 7% applies to pharmaceutical products;
  • the VAT mandatory registration threshold is 1 million UAH (approx. 43,000 EUR);
  • companies must file their annual tax returns within 10 days from the end of the tax year;
  • non-residents are also subject to withholding taxes on dividends, interests, and royalties at a rate of 15%.
The entire procedure to open a business in Ukraine takes around 4 weeks to complete, which is why if you are considering setting up a company here, we recommend using our services in order to avoid delays. The quickest business form to register is the private limited liability company.
Do not hesitate to contact us for tailored support if you want to open a company in Ukraine.