LAWYER’S ASSISTANCE FOR SETTING UP A BUSINESS

Tel.: +38 (044) 233-01-96, +38 (068) 810-96-62

viplex7@gmail.com 

ENTERPRISES WITH FOREIGN CAPITAL AND NON-RESIDENT OWNERS

IN UKRAINE

When setting up an enterprise (business) with foreign capital, in most cases (in Ukraine) a company is being established as a Limited Liability Company (LLC).

This form of an enterprise is well-regulated by law in Ukraine and is similar to the existing LLCs in the CIS countries and the EU (except for England and Cyprus) and allows a foreign founder to solve ALL the common tasks (realization of economic activities on the territory of Ukraine through a controlled entity or with partners from Ukraine) and at the same time does not provide "additional unnecessary formalities" such as, for instance, the issue of shares in a joint-stock company.

It should be noted that the legislation of Ukraine on Foreign Investment provides certain rules (protection of investments, etc.) regardless the form of the enterprise, where an investment was made. These rules are applicable to the Limited Liability Company as well. Also, the law allows you to set up a LLC with 100% foreign capital owned by one foreign legal entity or a natural person (sole proprietor).

For founders with a natural person status who are not citizens of Ukraine it is required to obtain a Ukrainian INN (individual tax identification number). Only after your INN has been received, registration of a new company and opening a bank account for a non-resident investor becomes possible.

REGISTRATION DEADLINES FOR A NEW BUSINESS

AND ITS NAME VERIFICATION

Depending on the district in Kiev, registration will take from five to eight working days since the signing of documents by a notary. In other regions of Ukraine it takes an average of five to fifteen days.

Note: in a few days after the completion of actions on registration, you will need to choose a system of taxation for an enterprise (general or simplified) and submit an appropriate application. As a rule, it should be done by the director or chief accountant personally. If you do not, then in two weeks the enterprise will automatically become registered as a payer of income tax on general grounds at a rate of 25%. For registering as the payer of value-added tax a separate application must be submitted after the turnover of the company's bank account will exceed 300,000 UAH.

Note that the verification and selection of the name for your new venture will be done by me within a few minutes, without limiting the number of desirable options and without surcharge (with no extra payment for services). You can also do it yourself and for free online, using the official database of the existing enterprises in Ukraine on the website www.irc.gov.ua.

SERVICES PROVIDED, WHICH ARE INCLUDED IN THE PRICE FOR REGISTRATION OF A BUSINESS. ALL INCLUSIVE!

–   Recommendations on the form of ownership, the district where a business will be  registered and your new company's name in Ukraine.

–  Selection of the unique name for the company according to the Unified State Register of Ukraine (since 1. July, 2008 it is not allowed to register a new enterprise with a name identical to an already existing) – in unlimited quantities.

–  Choosing of activity codes in accordance with Ukrainian national Classification of Economic Activities 2012, development and preparation of the necessary founding documents and a power of attorney for further registration with signing them by a notary.

–   Preparation of the documents in order to open a temporary bank account (not necessarily since 2012, but it is allowed in case you need bank account details immediately upon registration of the enterprise).

–  The state registration of a new business (by a state registrar in the district state administration), obtaining an abstract from the Unified State Register of Legal Entities and Individual Entrepreneurs and an extended extract.

–   Receiving a certification on being included in the Unified State Register of Enterprises and Оrganizations of Ukraine (EDRPOU) at the Department of Statistics.

–   Registration at Tax Inspection. 

–  Registration in the required social insurance funds: Pension Fund, Employment Fund, Social Insurance Fund against accidents at work, Social Insurance Fund against temporary disability (since 1. January, 2011 all these funds are merged so that payroll contributions are now classified as Unified Social Tax, which is administrated by Pension Fund). 

–   Manufacturing of the company seal and stamps (on request).

–   Opening an account in any bank of Ukraine at the client's choice.

REQUIRED DOCUMENTS

FOR REGISTRATION A BUSINESS IN UKRAINE

–  Copy of passport, certificate of a value added tax identification number given to a founder, director, accountant (including non-resident owners who are natural persons). If necessary, I assist you in receiving such a certificate (or its duplicate), i.e. the number of a taxpayer accounting card in Ukraine for non-residents and Ukrainian citizens residing in another region and temporarily staying in Kiev. 

–   Documents confirming the location (legal address) of a company (if any).

Comments:

1) During the primary registration of a business only a citizen of Ukraine is allowed to be a director, the presence of an accountant is not necessarily required. In future, if the founders want a foreigner to lead the company, they must obtain a permit for employment of a foreign director.

2) Location (legal address) of an enterprise may be a founder’s place of residence, which should be confirmed by registration (Form № 3, received at a housing office), or property owned by a founder or leased premises. Specific form of the required documents to confirm the whereabouts depends on the situation. If there are no documents confirming an address, I will help you in finding an appropriate legal address.

INFORMATION AND YOUR PREFERENCES TO BE GIVEN

BEFORE REGISTERING LLC 

–   Variants of the company’s name

–   Registration district in Kiev

–   Distribution of shares of the authorized capital between the founders

–   Size and procedure of the authorized capital formation

–   Main planned activities

–   Selected bank

–   Preferred form of taxation (general or single tax)

–   Need in producing of a company seal

–   Need in producing of additional stamps

–   Phone number specified in the documents as the company’s telephone, etc. (to be included into the database)

WHERE THE PRESENCE OF THE CLIENT OR HIS/HER REPRESENTATIVE(S) IS OBLIGATORY WHEN REGISTERING LLC

– At a notary to sign documents and powers of attorney (the founders themselves or their representatives).

– At the bank when opening an account (the director and other persons specified in the bank card).

All the other actions are performed by attorney.

Additional information and legal advice on business registration in Ukraine is available by phone: 

+38 (044) 233-01-96 or +38 (068) 810-96-62 

as well as by mail: viplex7@gmail.com