Establishing a Company and Registering a Business in Ukraine

Forming a company in Ukraine can be the start of a profitable business for you and your partners. Of course, if your goal is to have an operating business in Ukraine, you should approach company registration very responsibly.

Our team has been providing company registration services for over 15 years. In this article, we will share our experience and give answers to the most pressing questions when creating a business. You can freely use this information or make the solution to your problem simpler – contact us for help and turnkey company formation.

How long does it take to establish a company in Ukraine?

In the simplest version, about 3 days. This is if you want to establish a company with one founder, without a complex structure with a basic, standard Charter.

As soon as we add to the task a different number of founders, a more complex structure or a different type than LLC, a more complex company structure or even a foreign director – the deadlines increase in terms of preparation and preliminary consultations. In such a situation, more time will be needed not for the registration itself but for its preparation: development of the Charter, preparation of other documents.

You will know all the deadlines exactly after a preliminary consultation with us. First of all, you need to understand what you need from this business how you see it. We will be able to develop a clear plan for its creation.

Interesting: How much does it cost to register a business in Ukraine?

How much does it cost to register a company in Ukraine?

Simple LLC in Ukraine company registration costs around 250 USD. If you are planning to create a company with a foreign director, the price will be from 1100 USD. 

However, if we are talking about registration of the business, which will involve tax planning, legal consulting, development of the Charter and opening of company accounts, the cost of services will start from 2300 USD.

Just contact a representative of our team, tell us your vision, and you will find out the cost of the service for you. You can also see the pages of these services on our website.

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What are the steps to set up a company in Ukraine?

Let’s name the basic steps of company registration:

1. Planning. How you plan your business is how it will operate. The competently chosen form of the company, the taxation system, which depends on the turnover, the number of employees and other factors. It is also important to correctly draw up the statutory documents - this is primarily the protection of your interests as the owner. It is necessary to determine the number of founders, the structure of the company, the features of working with personnel and other important issues. Our lawyers will listen to your idea and offer their plan, based on experience and knowledge of local laws.
2. Preparing documents. Once your business plan is created, you need to back it up with documents. This includes all statutory documents, the registration form, as well as documents of the founders and director. Everything must be drawn up in accordance with current legal requirements. If the founder of the company in Ukraine is a foreign company, documents from it will also be required. 
3. Submission of documents and registration. This is actually the easiest stage because you have already done all the main work with us in the previous two. The registration itself is carried out by our lawyers by proxy at the local registration authority or at a notary.
4. Organization of processes in the company. After registration, you need to implement all additional actions stipulated by the constituent documents: register with the tax service, organize accounting, personnel records, open bank accounts, etc.

In addition, there may be other steps. If a foreign director is planned for the company, he will in most cases need to obtain a residence permit in Ukraine. We can help with all additional procedures to achieve your goals.

This is the case if you want to open a business to create grounds for a residence permit in Ukraine, or if you want to run your business in Ukraine as a director while being in the country. No matter how many additional steps are required to achieve your goal, we can do them for you.

Interesting: How to open a company for business in Ukraine for foreign citizens?

What types of companies can be registered in Ukraine?

There are several ways to do business in Ukraine. You can register a company (there are several types, depending on your goals), or you can work as a private entrepreneur. Let's briefly discuss the differences between the known ways of doing business.

LLC

This is the most common form for registering a business in Ukraine. Most people choose it because of its flexibility and ease of registration and management. You can register it alone or as a group of several founders. An LLC can be sold if you want to get rid of the business, plus, such a company is liable only within the capital of the company. 

An LLC is a convenient option if you want to have several employees to run a business or plan to obtain a license. This is not a mandatory requirement, but some types of activities require an LLC.

Sole Proprietorship

This is a special form of doing business when the person himself registers as an entrepreneur. In Ukraine, this is called FOP or Sole proprietorship. For a long time, this form was perfect for a number of activities, for example, it was actively chosen by IT specialists or doctors. It was beneficial due to the opportunity to work in a certain tax group and due to already proven schemes of cooperation with companies. 

For foreigners, this is not the best choice because having a sole proprietorship did not give the right to obtain a residence permit. In addition, due to changes in tax legislation, a record number of sole proprietorships closed in Ukraine in 2024. A sole proprietorship cannot be sold, if necessary, plus such a person is liable for his obligations with his personal property.

Joint-stock Company

JSC is another form of company you can register, which is commonly an option for a business of a large scale. The creation of such a company involves the formation of a large authorized capital, a more complex structure and protection of shareholders' rights. Such companies can be private or public, which will determine the order of their functioning and distribution of shares.

What is the minimum annual tax required to maintain a Ukrainian company?

When you open enterprises in Kiev or other cities of Ukraine, you should understand that registration is only the first step. Then the company will have to be maintained and the rules of its existence will have to be observed, without violating the laws of Ukraine. 

Not so long ago, if your company did not conduct any activity and did not have employees, but only a director, it was actually possible to do without tax expenses by filling out the so-called zero reporting. This is no longer the case. Now, it is necessary to pay at least the minimum wage and taxes.

Now, all companies are required to pay the Unified Social Contribution (USC) for each employee of the company, including the director. That is, even if no activity is carried out in the company, you will need to pay at least 1760 UAH (about 40 USD) monthly. 

In addition, you will need to pay 22% income tax and 6% military tax. In addition, tax legislation is actively changing, and it is important to monitor this.

If we are talking about a working business, then your tax burden will directly depend on the type of activity, your business model and annual turnover. In this case, we will involve tax specialists in the work, who will help you with tax optimization. 

We also offer our clients full accounting and HR services for their business. So, if you are ready to open a company in Ukraine, with the purpose of obtaining a residence permit or running a real business, contact us!