DOING BUSINESS IN UKRAINE IN 2023
Since 2003, Healy Consultants Group has assisted our Clients with starting their business in Ukraine. Our services include i) Ukraine business registration ii) corporate bank account opening iii) employee recruitment strategies and iv) office rental solutions.
| Compare different Ukraine entities | Tax resident LLC | Private JSC | Public JSC | Representative office | Branch of a foreign company | Fast Solution LLC |
|---|---|---|---|---|---|---|
| Best use of company? | Trading company | Trading on the Stock Exchange | Raising capital | Marketing and research | Commercial representative office | Close a customer deal now |
| Legally tax exempt if properly structured? | No | No | No | No | No | No |
| Corporate bank account location? | Credit Agricole | Raiffeisen Bank Aval | Privat Bank | Alfa Bank | Sberbank | Sberbank |
| Client must travel to Ukraine? | No | No | No | No | No | No |
| Can secure trade finance? | Yes | Yes | Yes | No | Yes | Yes |
| Limited liability entity? | Yes | Yes | Yes | No | No | Yes |
| VAT payable on sales to local customers | 20% | 20% | 20% | 0% | 20% | 20% |
| Withholding tax on payments to overseas shareholders? | 15% | 15% | 15% | 15% | 15% | 15% |
| Average total engagement costs? | US$10,900 | US$9,500 | US$9,500 | US$8,800 | US$8,800 | US$25,760 |
| Average total engagement period? | 3 months | 6 months | 6 months | 6 months | 6 months | 2 months |
| Accounting and tax considerations | Tax resident LLC | Private JSC | Public JSC | Representative office | Branch of a foreign company | Tax resident LLC |
|---|---|---|---|---|---|---|
| Statutory corporation tax payable? | 18% | 18% | 18% | 0% | 18% | 18% |
| Must file an annual Ukrainian tax return? | Yes | Yes | Yes | Yes | Yes | Yes |
| Effective corporation tax rate on net profits of US$ 250,000 | 18% | 18% | 18% | 0% | 18% | 18% |
| Must file annual financial statements? | Yes | Yes | Yes | Yes | Yes | Yes |
| Investment income is legally tax exempt in Ukraine? | No | No | No | No | No | No |
| Access to double taxation treaties? | Yes | No | Yes | No | No | Yes |
| This entity enjoys Government incentives? | Yes | Yes | Yes | No | Yes | Yes |
| Monthly VAT reporting to the Government? | Yes | Yes | Yes | No | Yes | Yes |
| Legally tax exempt entity? | No | No | No | No | No | No |
| Dividends received are legally tax exempt? | No | No | No | No | No | No |
| Company registration | Tax resident LLC | Private JSC | Public JSC | Representative office | Branch of a foreign company | Fast Solution LLC |
| Ukrainian resident director/partner/manager required? | Yes | Yes | Yes | Yes | Yes | Yes |
| Minimum number of shareholders/partners? | 1 | 1 | 1 | Parent company | Parent company | 1 |
| Minimum number of directors/managers? | 1 | 1 | 1 | 1 | 1 | 1 |
| Minimum paid up share capital? | US$1 | US$59,741 | US$59,741 | US$0 | US$0 | US$1 |
| Shelf companies available? | Yes | Yes | Yes | No | No | Yes |
| Time to incorporate a new entity? | 1 week | 1 week | 2 weeks | 1 week | 1 week | 1 week |
| Can easily convert to a local PLC company? | Yes | Yes | Yes | No | No | Yes |
| Can have preference shareholders? | Yes | Yes | Yes | No | No | Yes |
| Business considerations | Tax resident LLC | Private JSC | Public JSC | Representative office | Branch of a foreign company | Fast Solution LLC |
| Can invoice local customers? | Yes | Yes | Yes | No | Yes | Yes |
| Can hire local staff? | Yes | Yes | Yes | Yes | Yes | Yes |
| Can rent local office space? | Yes | Yes | Yes | Yes | Yes | Yes |
| This entity can secure a residence visa for business owner? | Yes | Yes | Yes | Yes | No | Yes |
| Good entity for trademark registration? | Yes | Yes | Yes | No | No | Yes |
| Ukraine has signed free trade agreements? | Yes, see this page |
| This country is a member of WIPO and TRIPS? | Yes |
| The country is a member of the ICSID? | Yes |
| Average customs duties suffered? | 10% |
| Government foreign investment approval is required? | No |
| Average monthly office rental? (US$ per sq m) | US$352 |
| Minimum statutory annual salary? | US$2292 |
| Average monthly US$ salary for local employees? | US$5160 |
| Ukrainian grivnya deposit interest rate? (1 year average) | 11.77% |
| US$ deposit interest rate? (1 year average) | 5% |
| Overseas remittance currency controls? | Yes |
| Public register of shareholders and directors? | Yes |
| Banking considerations | |
| Multi-currency bank accounts available? | Yes |
| Corporate visa debit cards available? | Yes |
| Quality of e-banking platform? | Good |
| Crowd funding available in this country? | Yes |
