Doing Business in Ukraine (400 dollars USA)
The main aim of this article is to help foreign investors to find the best solution while choosing the optimal form of doing business in Ukraine. The Ukrainian law distinguishes different types of business entities.
Commonly used types of legal entities in Ukraine are Limited Liability Company (LLC), Public Joint-Stock Company and Private Joint-Stock Company. One of most popular form of doing business in Ukraine among the foreign investors is Limited Liability Company.
Legal costs
Attorney's fees for incorporation of legal entity for foreign investor are 400 dollars USA. These expenses include the services as follows:
1. Reservation of name of the future company;
2. Drafting all constitutional documents in two languages (namely, Charter, Minutes, etc.);
3. Notary public (namely, notarization of the Company's Charter);
4. All necessary state taxes and payments;
5. Seal manufacturing.
Paid separately:
|
Operation description |
Costs |
|---|---|
| 1. Opening of temporal bank account (if authorized capital is formed in monetary form) |
100 dollars USA |
| 2. Translation of documents and their notarization |
100 dollars USA |
| 3. Obtaining of identification code for participant (founder) - individual (if the identification code was not obtained earlier) |
200 dollars USA |
| 4. Purchase of Legal address in any district of Kiev (if isn't available) |
1000 dollars USA |
| 5. Also our legal firm provides the services of nominee director and shareholder, attorney's fees for these services as for nominee director and as for nominee shareholder. |
500 dollars USA per month |
| 6. In regard to VAT the legal fees |
3500 dollars USA |
| 7. Obtaining the employment permit (for non-resident who would like to work in Ukraine) |
650 dollars USA |
LLC is a business entity which is extremely flexible, and can be used for a very wide range of businesses. It can be incorporated either by one or more members (equivalent to shareholders) whose liability is limited to their shares in the charter capital of the LLC. This means that creditors of the LLC usually cannot go after the owners' personal assets to pay off LLC debts.
Also the purpose of LLC is to simplify management rather than attract a large number of members. LLC in Ukraine can be incorporated as by individual as by legal entity, there are no any restrictions in this matter.
Summary of Features
• Owned by members (shareholders).
• Liability of members limited to amount of capital invested.
• May (but need not) have perpetual existence.
• Governed by constitutional documents which are largely determined by Ukrainian legislation.
• Administered by Directors (who are elected by the members for specified terms).
• Minimum size of the charter capital for LLC is 1 minimum salary (as of 01 JULY 2011 it constitutes 960 UAH).
According to Ukrainian legislation for incorporation of LLC in Ukraine the company secretary is not necessary.
Participant of the Limited Liability Company has the right to alienate the share (participatory interest) or its part to in the authorized capital of company the third person. The members of the limited liability company have pre-emptive rights for the purchase of shares (participatory interest) of those members who are willing to sell them.
Process Duration:
Registration of legal entity takes at least 2 weeks including period of time after submission of numerous required documents to the registration authorities. When a foreigner founder is involved, a number of documents need to be apostilled (or legalized), translated and notarized, which may mean that the registration process can take far longer than aforementioned period.
Incorporation Description:
• Company name availability check.
• Preparation of a power of attorney.
• Preparation of constitutional documents.
• Preparation of an application form for company registration.
• Payment of a state due for company registration.
• Manufacturing of a company seal.
• Opening of bank account in Ukraine.
• Contribution of charter capital.
• Obtaining of Certificate of registration.
Incorporating LLC in Ukrainian as investment vehicle is the first step on the way of doing successful business in Ukraine. Our corporate team delivers comprehensive legal support across the entire corporate spectrum and provides clients with services at all stages of their development, from start-up companies to global enterprises.