How to open a company for business in Ukraine for foreign citizens?
Opening a company in Ukraine as a foreign citizen can be a challenging process, but it's definitely achievable. Ukraine is a growing market with great potential for foreign investors, so it's worth considering this option. In this article, we will guide you through the steps you need to take to open a company in Ukraine.
Choose the right legal form
1. The first step is to choose the right legal form for your business. In Ukraine, there are four main types of legal entities: Limited Liability Company (LLC), Joint Stock Company (JSC), Private Enterprise (PE), and Representative Office. The most popular choice for foreign investors is an LLC, which has the advantage of being easy to set up, having a low minimum capital requirement, and providing limited liability.
Register your company
2. Once you have decided on the legal form, you need to register your company with the Ukrainian government. You will need to provide the following documents:
- Application for registration
- Memorandum of association
- Articles of association
- Proof of payment of state fees
- Notarized copies of the passports of all founders and directors
- Certificate of non-conviction for all founders and directors
You can register your company either in person or through an authorized representative. The registration process can take up to 10 working days.
Obtain a tax identification number
3. After registering your company, you will need to obtain a tax identification number (TIN). This number is required to conduct any business activity in Ukraine. You can apply for a TIN at the tax authority office in person or through an authorized representative. The process takes around three working days.
Open a bank account
- Certificate of registration
- Articles of association
- TIN
- Notarized copies of the passports of all founders and directors
Obtain necessary licenses and permits
5. Depending on the nature of your business, you may need to obtain additional licenses and permits. You can check the requirements with the relevant authorities or hire a legal consultant to help you with the process.
Hire employees
6. If you plan to hire employees, you will need to register your company with the Social Insurance Fund and the Pension Fund. You will also need to obtain work permits for any foreign employees.
Maintain proper accounting
7. Ukraine has strict accounting requirements, and you will need to keep proper records of all financial transactions. It's important to hire a qualified accountant to help you with this process.
Opening a company in Ukraine as a foreign citizen can be a complicated process, but with proper guidance and preparation, it can be a rewarding experience. By following the steps outlined in this article, you can successfully set up a business in Ukraine and tap into the country's growing market.
Of course, each of the stages has its own nuances. So, for example, the choice of the optimal form of taxation and even the procedure for hiring employees will depend on the type of business that you are planning. For example, IT business in Ukraine has its own tax privileges, and staff can be hired through agreements with private entrepreneurs or through gig contracts.
Our company helps at every stage of starting a business, and also offers legal and accounting support for a business after its registration.
Related article: How to start your IT business in Ukraine?
What to do if a foreign person, the founder of a company in Ukraine, plans to become its director?
If a foreigner wants to be the CEO of a company in Ukraine, they will need to obtain a work permit and a temporary residence permit. The work permit is issued by the State Employment Service of Ukraine and allows the foreigner to work legally in Ukraine. The temporary residence permit is issued by the State Migration Service of Ukraine and allows the foreigner to stay in Ukraine for the duration of their work permit.
To obtain a work permit and a temporary residence permit, the foreigner will need to provide the following documents:
- Application for work permit and temporary residence permit
- Passport with a valid visa
- Proof of registration of the Ukrainian company
- Employment agreement with the Ukrainian company
- Proof of payment of state fees
- Medical insurance policy
- Proof of financial support
The process of obtaining a work permit and temporary residence permit can take up to two months, so it's important to plan ahead and allow enough time for the application process. Additionally, it's important to note that the work permit and temporary residence permit will need to be renewed annually.
Our company accompanies the entire process of obtaining a work permit in Ukraine and the subsequent residence permit. Most of the procedure can be prepared and carried out remotely, if it matters to our Client.
