In what form to register a business in Ukraine?

Ukraine can be attractive as a platform for starting a business not only for large foreign companies, but also for individual foreign entrepreneurs.  

A separate important question is in what organizational and legal form to register a business in Ukraine and what this or that form of business can give.

We often meet a situation where foreigners at first are afraid of the word combination "firm registration", because a firm is something complicated, it is a legal entity, it has a lot of issues, including taxes, and therefore it is easier and easier to register a sole proprietorship.

We will analyze your situation and help you to determine what will be profitable and convenient in your case. Starting a business in Ukraine will be simple and clear, and most importantly - it will meet your needs.

Related article: How can a foreigner open a public organization in Ukraine in 2021?

In what situation will it be profitable to open an LLC in Ukraine?

Registering a company may seem like a complicated, multi-step process. But it is not something you should fear. The main thing is to get it right and figure out what would be the best way to start your business and grow it.

Advantages of registering LLC in Ukraine:

• Ability to work with large investors and legal entities in the future;

• LLC is liable for its obligations only with the capital of the LLC;

• The possibility of obtaining a residence permit in Ukraine as the director of the enterprise;

• In the future the business in the form of Ltd. can be sold or transferred to the "alternative liquidation" within a few days.

Disadvantages of registering LLC in Ukraine:

• Keeping records can be more complicated than for a sole proprietorship, although it all depends on your turnover and type of activity;

• At registration you will need to collect a larger package of documents, for example, the Protocol of the General Meeting of the founders or the Charter. Our lawyers can help you with this.

Related article: How to buy a ready-made business in Ukraine? Checking a ready-made company in Ukraine

In what situation will it be profitable to start a sole proprietorship in Ukraine?

If the registration of LLC gives you the opportunity to obtain a residence permit or permanent residence permit in Ukraine, the registration of sole proprietorship requires it. To register a sole proprietorship in Ukraine, you need confirmation of your legal stay on the territory of Ukraine.

Pros of sole proprietorship in Ukraine:

• The reporting of individual entrepreneurs is simpler than that of an LLC. But this does not mean that you can not do it or do it carelessly.
• There is no need to have a legal address, but a foreigner needs a place of registration, at which the individual entrepreneur will be registered;
• There is no need to pay yourself a salary.

Disadvantages of sole proprietorship in Ukraine:

• Sole proprietorship cannot be sold or transferred to another person;

• Sole proprietorship is liable for its obligations to its contractors with its personal property;

• There are certain restrictions on the types of activities and number of employees for sole proprietorship;

• A foreigner to register a sole proprietorship in Ukraine needs a residence permit, a permanent residence permit, or other permit to stay in Ukraine.

This form of doing business is suitable for those who already have grounds for legal stay in Ukraine, or for those entrepreneurs who are not going to stay in Ukraine for a long time.

If you have decided to open a business in Ukraine, our lawyers offer you:

• Consulting on business registration in Ukraine for a foreigner in the right form;

• Preparation of all necessary package of documents for registration of business in Kiev for foreigner;

• Obtaining TIN in Ukraine;

• Obtaining TPL for foreigner to work on established company, if required;

• Obtaining residence permit in Ukraine, if required;

• Consulting on conducting business in Ukraine and entrance to Ukrainian market;

• If necessary - accounting outsourcing services for the period you need.

Do you want to start an operating business in Ukraine? Please contact us! We will help you determine the most suitable form of business registration and carry out all the necessary registration activities.