Registration of Legal Entities (Company Formation)

Incorporation of Limited Liability Company in Ukraine

Limited Liability Company 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.

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 JUNE 2011 it constitutes UAH 960). At least 50% of the charter capital should be invested by the members before registration. The rest should be paid within the first year. Such contributions into the charter capital are non-taxable in Ukraine.
• Please be aware that according to Ukrainian legislation for incorporation of LLC in Ukraine the company secretary is not necessary.

Please be aware, LLC in Ukraine can be incorporated as by individual as by legal entity, there are no any restrictions in this matter.

In order to incorporate LLC in Ukraine, Non-Ukrainian Resident need to:

1. Send us company information (company name, shareholder's / member's information, etc.)
2. Provide us with legalized Power of Attorney and Minutes. We will provide Non-Ukrainian Resident with the models.
3. Have a legal address in Ukraine. If Non-Ukrainian Resident doesn't have one, we can provide this for Non-Ukrainian Resident.
4. Have a company capital of at least UAH 960 (as of 01 JUNE 2011).
5. Have a copy of identification code issued in Ukraine if Non-Ukrainian Resident is an individual.
6. Provide us with legalized documents confirming that Non-Ukrainian Resident as legal entity is duly incorporated in the country of origin (for example, an extract from the trade, bank, court registry, etc.).
7. Provide us with the name of the financial institution (bank) in which the temporary account will be opened (in case of formation of charter capital of new legal entity in monetary form).
8. Provide us with company's objects.
9. Provide us with information in regard to temporal and permanent director. Only Ukrainian citizen can obtain a position of director in newly incorporated company. But as soon as registration procedure of the new company is completed such director (Ukrainian citizen) can be replaced for foreigner with dully issued Work permit. We also provide services of nominee director and comprehensive support in obtaining of Work permit.
10. Provide us with information in regard to desirable form of taxation.

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.

Process Duration:

Once our lawyers have received all information and documents for LLC registration, the new company will be incorporated in a period of approximately 14 days.

Legal costs

Attorney's fees for incorporation of legal entity - LLC are 1500 dollars USA - cash payment (clearing settlement -1800 dollars USA)

Above-mentioned expenses in amount 1500 dollars USA include 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:

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 are 500 dollars USA per month as for nominee director and as for nominee shareholder.
6. In regard to VAT the legal fees are 3 500 dollars USA.
7. Obtaining the employment permit (for non-resident who would like to work in Ukraine) - 650 dollars USA.

Sincerely yours,

Managing Partner
Alexey Kravchenko

Lawyer,
Lyudmyla Kolodnyk

office: + 38 044 220 0570
mobile: + 38 067 447 4107
e-mail: info@profit-consul.com