Organize a business in Ukraine

by Roman Cheplyk
Saturday, March 18, 2023
Organize a business in Ukraine

Ukraine is one of the fastest-growing economies in Eastern Europe, with a rapidly expanding business landscape

The country offers a range of opportunities for entrepreneurs and investors looking to start or expand their business in the region. However, like any other country, Ukraine has its own unique regulations and requirements for starting and operating a business. In this guide, we will provide you with a comprehensive overview of the process of organizing a business in Ukraine.

Choosing a Legal Entity

The first step to organizing a business in Ukraine is to choose a legal entity. There are several types of legal entities available in Ukraine, including:

Limited Liability Company (LLC)

An LLC is the most common legal entity for small and medium-sized businesses in Ukraine. It is easy to establish and maintain, requires a minimum share capital of just one Ukrainian hryvnia, and offers limited liability protection to the owners.

Joint Stock Company (JSC)

A JSC is a more complex legal entity that is better suited for larger businesses. It requires a minimum share capital of 125,000 Ukrainian hryvnias and is subject to stricter regulations.

Representative Office

A representative office is not a separate legal entity but rather an extension of a foreign company. It can only engage in non-commercial activities, such as market research, and cannot generate revenue.

Registering Your Business

Once you have chosen your legal entity, the next step is to register your business. The registration process in Ukraine is relatively straightforward and can be completed in as little as two weeks.

Choosing a Name

Before you can register your business, you must choose a name that is not already in use. You can check the availability of a name on the Ministry of Justice website.

Obtaining a Tax Identification Number

All businesses in Ukraine must obtain a tax identification number (TIN). You can apply for a TIN at the State Tax Service.

Registering with the State Registrar

You must register your business with the State Registrar, which is responsible for maintaining the state register of legal entities and individuals. You can register online or in person at the State Registrar office.

Obtaining Permits and Licenses

Depending on your business activities, you may need to obtain additional permits and licenses. The requirements vary depending on the industry and location of your business.

Opening a Bank Account

Once your business is registered, you will need to open a bank account in Ukraine. This will allow you to receive payments from customers and pay suppliers and employees.

Choosing a Bank

There are many banks in Ukraine to choose from. When selecting a bank, consider factors such as fees, services, and location.

Providing Documentation

To open a bank account, you will need to provide documentation such as your TIN, registration certificate, and passport.

Hiring Employees

If you plan to hire employees for your business, you will need to follow certain regulations and procedures.

Employment Contract

All employees must have a written employment contract, which outlines the terms and conditions of their employment.

Payroll Taxes

Employers are required to pay payroll taxes, which include social security contributions and healthcare contributions.

Work Permits for Foreign Employees

If you plan to hire foreign employees, they will need to obtain a work permit from the State Employment Service.

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