1. Company Registration Address
A legal address is essential for registering a company in Ukraine. However, it's not necessary to rent a physical office space. You can utilize a legal address rental service, which provides a registration address without the need for an actual office.
2. Company Ownership
Foreigners can own 100% of a limited liability company (LLC) in Ukraine. There is no requirement to have a local Ukrainian partner or to hire a Ukrainian secretary. However, the company must have a director, who can either be you or an employee. If you choose to be the director, you will need a work permit in Ukraine.
3. Authorized Capital
There is no minimum amount of authorized capital required by law for LLCs in Ukraine. In theory, it can be as low as 1 hryvnia. However, for practical purposes, it's recommended to set at least a minimum amount, such as $50-100.
4. Bank Account
To conduct business, you need a bank account in a Ukrainian bank. While opening an account in an international bank is possible, it is more complicated and expensive. Most Ukrainian banks offer convenient conditions for businesses and have international accounts. Additionally, Ukraine has an association agreement with the EU, facilitating smoother business operations.
5. Additional Conditions for Registration
Besides the legal address, the following documents are required for LLC registration:
Company charter
Protocol on the creation of the LLC
Passport data and individual tax number of the founders (in your case, only your data)
A notarized copy of the passport with a Ukrainian translation
Application for state registration
An original company name and detailed directions of the company's activities are also necessary.
6. Term of Registration
Registering an LLC in Ukraine takes approximately 1-3 working days after submitting all necessary documents. Opening a bank account may take up to 10 business days. You will need to provide a power of attorney with an apostille from your home country.
7. Taxes and Accounting Services
The corporate income tax in Ukraine is 18%, and personal income tax is 18% plus a 1.5% military levy. Currently, LLCs can opt for a simplified taxation system of 5% of income. We offer accounting services, including bookkeeping and reporting, typically costing around $250 per month.
8. Offering the Cheapest Options
To minimize costs, consider:
Renting a legal address without an actual office
Setting a minimum authorized capital
Using a Ukrainian bank to reduce account opening costs
Additionally, for simplicity and speed, you can create a company with a Ukrainian owner and director. Once you arrive in Ukraine, the ownership can be transferred to you.
9. Cost of Services
Our comprehensive service package includes:
Preparation and submission of registration documents
Opening a bank account
Registering the company with tax authorities
Assistance with renting a legal address
Making a company seal
Consultations on taxation and accounting
The total cost of these services ranges from $600 to $900.
10. Conclusion
Registering a Limited Liability Company in Ukraine is a practical and straightforward process. While the initial steps may seem complex, working with experienced legal and business consultants can simplify the process and ensure compliance with Ukrainian laws and regulations. An LLC offers the benefits of limited liability, complete control, and access to the Ukrainian market for your business endeavors.
Remember that specific requirements and procedures may change, so it's crucial to consult legal experts or local business advisors for the most current and accurate guidance. The business landscape in Ukraine is dynamic, and staying informed with the right support will ensure a successful registration process for your foreign-owned LLC.
For additional questions or assistance in creating and registering an LLC in Ukraine, contact volodymyr.machuskyy@kneu.edu.ua.
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