How to register a startup company in Ukraine: process, cost
You won’t find the word “startup” in Ukrainian legal acts, as it is a term that came here from Western business culture. But that doesn’t mean that startup system in Ukraine is not implemented or doesn’t work.
Nowadays, startups in Ukraine are mostly based on the use of modern information technologies, and therefore in most cases we are talking about IT startups. Online shops are also pointed out as the example of successful startups.
We will talk about the process of such company registration in Ukraine and answer the most thrilling questions that arise at the start of almost every business.
What to do first?
So, you are planning to create a startup company. What to do? How to register it?
First of all, you need to choose the legal form of organization of your future company. Based on our practical experience and knowledge of the local laws, we can say that the registration of LLC becomes the most acceptable form of entrepreneurship for a startup.
Related article: Our attorneys have successfully supported entry of foreign IT company onto Ukrainian market
How to register an LLC in Ukraine?
This is one of the most common procedures for our Law firm here in Ukraine. We can give you a list of the required steps for the LLC registration.
- Decision on the LLC registration as such.
- Drafting the Charter of the company. It will determine the order of formation, operation and dissolution of the governing bodies of the company, profit distribution, amount of the charter capital, location of the company and other important details.
- Signing the Charter and preparation of necessary documents for the submission process. We can prepare all the documents for you, if you want.
- The submission of the documents to the government entity. It can be performed personally by the members of the LLC or by authorized persons. Today it can also be done by registered letter with an enclosure list and even online.
Related article: Assisted Polish company with registration of LLC for doing business in Ukraine
We can help you at any step of the company registration. For example, you must know, that if you want your company to have a CEO who is a foreigner, you need to get a work permit for him along with other permits. As an alternative, you can hire a Ukrainian citizen until your CEO will receive all the permits.
Our service: Obtainment of temporary residence permit in Ukraine
Will a startup company in Ukraine get any financial exemptions?
For many companies that are only to start their business activities, question of the financial exemptions can play the key role. After all, it includes aspects of organization process in the startup company that can be influenced by the government.
Today, only companies that will produce “innovative” products and goods can count on the financial support and tax advantages given by the government.
The Law of Ukraine “About innovation technology” implicitly regulates this question. This law gives definitions of the main terms connected with innovation activity. For example, it claims that an innovational enterprise is one that develops, produces, and sells the innovative products or services whose amount in monetary equivalent exceeds 70% of the total amount of production (services).
So, if your company meets requirements of the law in the “innovation” part, then you can look for the financial support.
Such financial support can come as:
a) full interest-free loans (on the terms of inflation indexation) for priority innovation projects at the expense of the State Budget of Ukraine and local budgets;
b) partial (up to 50%) interest-free lending (on the terms of inflation indexation) of innovation projects from the same budgets, if the company will invest its own money in the project;
c) full or partial compensation (by the State budget of Ukraine and local budgets) of interest paid by the innovative activity entities to commercial banks and other financial institutions in connection with the crediting of innovative projects;
d) providing the governmental guarantee to the commercial banks that perform the crediting of the priority innovative projects, etc.
How we can help
We can provide You with legal support at any stage of your business. Whether You want to register the LLC, puzzle out the process of getting the work permits here in Ukraine or get the advice on how to receive some financial support from Ukrainian government - we are here to help.
Lately we’ve worked with several startup companies from Europe (Poland, Germany), who wanted to start their business in Ukraine. We’ve registered the company and provided the service of nominal head and nominal legal address for the period of obtaining a work permit for a non-resident director.
The registration of such company takes only one week, obtaining a work permit – as long as 15 days. Our firm can also provide the accounting support of the company's activities at the initial stage (before the enterprise hires the primary accountant).
