Due to some legislation, an LLC, also known as a limited liability company, is the most popular format. When you open a business, you not only have to consider the venue but also the utilities.
month to start a small business in Ukraine
days - registration of the property can take. Then you have to think of getting electricity to your property to do business in Kyiv or somewhere else in Ukraine. Speaking of the administrative and regulatory side, it is relatively easy.
day can take to register as a `private entrepreneur`. Very easy if you are a Ukrainian citizen. If you are a foreigner, you will have to deal with some additional formalities first (have a registered place of residence, obtain a Ukrainian tax registration, etc.)
for free state registration of LLC/Lt in the state tax service. You can appoint yourself a director of the LLC. You will also need a bank account (another day or two) — and you can start your business in Ukraine.
If you plan on investing in Ukraine while opening your small business, you can do so through your bank account overseas. Opening an investment bank account in the country is also an option. However, it takes more time and fees to do so since you need to transfer the money to your Ukraine account, convert it into the correct currency, then pay for your investments from there.
You will have to issue a POA and some other documents, have them apostilled and then translated in Ukraine etc
You’ll need an official address for your company and director (if you are not the one), and an accountant (can be subcontracted)
LLC may us e simplified tax regime if they qualify as small businesses. If your annual income is below $250,000, you can pay 5% of your income on a quarterly basis plus a small social security payment
The individual income tax rate and corporate tax rate are different. Corporate tax is calculated at 18%, which is the same for individual tax but with an additional 1,5% tacked on. Then you have social security tax at 22% and VAT at 20%.
You may have to issue residence or work permits to foreigners you intend to employ. If any of your employees, including yourself, plan to relocate during the start of your small business in Ukraine, you need to apply for both.
Hiring employees when you start a small business in Ukraine is easy. Make sure you operate under the guidelines of the labor laws and civil services agreement.
To start a business in Ukraine is relatively simple, and Ukraine is a country that protects its investors more than others. Although paying taxes for your small business in Ukraine is a complicated and time-consuming task. The government requires multiple payments per year, so hiring an accountant who knows the ins and outs of paying taxes in Ukraine will familiarize you with the process.