Essential Tips on How to Open Business in Ukraine

Tuesday, August 17, 2021
Essential Tips on How to Open Business in Ukraine

Want to start a business in Ukraine but don't know where to start? No worries! Using our simple guide you'll reveal how to successfully register your own company!

Today Ukraine is on the list of the most attractive countries to open a company. This is since the legislation of Ukraine allows opening businesses not only for citizens but also for foreigners. Over the past few years, the procedure for registering a legal entity has become easier, which allows foreigners to quickly start a business in Ukraine.

Reasons to open a business in Ukraine

The popularity of this country in the field of opening its own company can be explained by the close cooperation of Ukraine with the European Union. This partnership stimulates Ukraine's dynamic approach to economic conditions for everyone who wants to do business on the territory of Ukraine.

Before proceeding with all the nuances and documents, it is important to decide what your business will be about. Sit down and think, ask yourself questions: "What will I do?", "Who do I want to build a partnership with?", "Who are my potential clients?"

Determine the Right Form for Your Business

There are 2 main forms of business in Ukraine: individual entrepreneur (or "FOP" in Ukrainian) and LLC (limited liability company or "TOV" in Ukrainian).

To better understand which form to choose for your business, let's compare FOP and TOV.

The process of registering a sole proprietorship will not take much time and effort, since the registration process is fast, and accounting is easy to keep. The only caveat is that responsibility for obligations must be borne in the amount of all your property.

In comparison with FOP, TOV is the most basic class of a legal entity. By choosing this form, you pick the easiest and most relevant way to start a new business in Ukraine, the reliability of which is many times greater than the above form. The whole secret of such reliability lies in the fact that the Founders of the company are personally liable for their obligations. The emphasis is shifting to the statutory fund, which the company acquires its property.

Business Registration Process in Ukraine

Today, the Ukrainian government has the most favorable conditions for registering a business. When calculating the time needed for this process, reserve 2-3 days to prepare all the necessary documents, submit them to a notary, and 24 hours to get an answer. Voila- You're done, now your business is open.

After selecting the   Selected Activities   ("KVED"), determine the taxation type. The next point worth paying attention to is a Legal Address. To register an individual entrepreneur, it is more correct to indicate the residence place, for registration of an LLC the address of the running office. And of course, let's not forget about a passport and individual tax number when you want to open a business in Ukraine.

Thus, we see that Ukraine today is an area of ​​opportunities in the field with favorable conditions for obtaining profitable stable results. But despite the seeming simplicity of the method, there are a million pitfalls that real professionals, such as GT Invest Ukraine, will help you cope with. Therefore, returning to the subject: "How to start a small business in Ukraine?" We advise you to consult so as not to lose a significant part of your money on scammers and time on incompetent people.

We wish success for you and your company!

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