Business entities in Ukraine in 2023
Healy Consultants will assist our Clients to incorporate the optimal corporate structure in Ukraine. There are several ways of doing business in Ukraine, the most common being the setting up of a limited liability company. Foreign corporations may also decide to set up a representative office. Unlike most other countries, such representative office must register for a tax identification number but can conduct commercial operations.
The Ukraine limited liability company (Tovarystvo z Obmezhenoyu Vidpovidalnistyu)
- This business entity requires only 1 director and 1 individual shareholder to complete Ukraine business setup. While the minimum paid-up capital required is set at €1, we usually recommend our Clients to allocate at least €5,000 (UAH120,000) to ensure completion of Ukraine company setup. Kindly note that Ukraine regulations forbid the appointment of a sole corporate shareholder;
- All the directors of the company must be allowed to work in Ukraine, which implies that foreigners must obtain a work permit before our Firm can appoint them. If necessary, Healy Consultants can provide our Clients with nominee services for one resident director until they can obtain a work permit or hire a local to assume such role;
- The Ukraine limited liability company is the most common form of business entity used by foreign investors conducting business in Ukraine as the registration process is simple. There is also no statutory audit requirement, which significantly reduces time required to fill tax returns after Ukraine business setup.
The Ukraine joint stock company (Vidkryte aktsionerne tovarystvo)
- The Ukraine joint stock company (JSC) requires a minimum share capital of €140,000, 50% of which must be paid-up before setup. Our Clients must also appoint at least 1 director of any nationality, but who must be authorized to work in the country. If needed, the company can be listed on the Ukraine Stock Exchange;
- Post incorporation, all Ukrainian JSCs must appoint a registered auditor and must submit audited financial statements annually.
The Ukraine representative office (Predstavnytstvo)
Foreign companies can set up representative offices in Ukraine. It is important to note that such office can be allowed to run commercial operations, similarly to a branch. The Ukrainian representative office will have to be registered with i) the Ministry of Economic Development and Trade ii) the State Statistics Committee iii) the Pension Fund and iv) the State Tax Inspection.
Table of comparison between Ukraine entities
Ukrainian business entity name Limited liability company Joint stock company Branch/representative
officeAlso known as: Tovarystvo z Obmezhenoyu Vidpovidalnistyu Vidkryte aktsionerne tovarystvo Predstavnytstvo How long to set the company up? 4 weeks 16 weeks 12 weeks How long to open company bank account? 4 weeks 4 weeks 4 weeks Legal liability? Limited Limited Unlimited Wholly foreign owned? Yes Yes Yes Minimum share capital? €1 €140,000 N/A File annual tax return? Yes Yes Yes Ukraine corporate bank account? Credit Agricole Raiffeisen Bank Aval Delta Bank Does our Client need to travel? No No No Non-resident director allowed? No No N/A Minimum directors allowed? 1 1 N/A Minimum shareholders? 1 1 1 Resident legal representative required? No No Yes Corporate shareholders allowed? Yes Yes Yes Standard corporate tax rate? 18% 18% 18% Annual financial statements required? Yes Yes Yes Statutory audit required? No Yes No Allowed to issue sales invoices in Ukraine? Yes Yes Yes Allowed to sign contracts with local entities? Yes Yes Yes Allowed to import and export goods? Yes Yes Yes Can rent an office in Ukraine? Yes Yes Yes Can buy Ukraine property? Yes Yes Yes Can own equity in other Ukraine companies? Yes Yes Yes Total Ukraine business setup costs in yr. 1? US$10,900 US$9,500 US$8,800 Subsequent annual costs (incl. accounting and tax fee)? US$4,750 US$4,650 US$4,650 Sample engagement invoice? View invoice PDF View invoice PDF View invoice PDF
