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A simple algorithm for registering a business in Ukraine: first steps

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Business registration in Ukraine starts with planning. There is no other way - in fact it is stupid to rush into battle without understanding what result awaits you and most importantly - what you would like to achieve.
 

You can plan the result and the steps to achieve it only if you have all the necessary information. If it's about doing business, you need to understand the market situation, the rules of your kind of business, tax rates, the need for additional permits and much more.

We'll start with a simple question: what form to register a business in Ukraine? What will it affect?

Related article: How to keep personnel records and hire employees in Ukraine? Instruction for foreign investor

Who chooses LLC to do business in Ukraine?


Advantages of registering a company for business in Ukraine:

  • It is possible to conclude transactions with major investors and legal entities - for such counterparties it is the presence of an LLC that often matters;

  • LLC is liable for its obligations only with the capital of the LLC, not with the personal property of the participants;

  • Registration of LLC enables its foreign member to obtain a residence permit and a residence permit in Ukraine;

  • The company can be sold or transferred for "alternative liquidation" within a few days.

Minuses:

  • Already at the registration stage you need a legal address, which is indicated in the registration forms, and to which all important correspondence will arrive. If necessary, we can provide such an address. The address can be changed later when you find a suitable office for your business;

  • Record keeping can be more complicated. The problem is solved by having an accountant;

  • Not only will you have to fill out forms for registration, but also prepare a number of constituent documents, which our lawyers can help with.

Related article: Order a legal business plan for activities in Ukraine: what will it give, and what will go into the plan?

Who chooses sole proprietorship to do business in Ukraine?


If you do not need a residence permit in Ukraine, your business will be medium or small, or you plan to provide project services - you may be suitable for the form of the sole proprietorship. It is often chosen by IT professionals who do not plan to live in Ukraine all the time, or have a residence permit on other grounds. But they want to work and receive income in Ukraine.

Advantages of the sole proprietorship:

  • Reporting is simpler than for an LLC. 

  • There is no need to have a legal address, but a place of residence is required for a foreigner;

  • There is no need to pay one's own salary.

Minuses:

  • Cannot be sold or transferred to another person, only closed, which takes about 1 year;

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

  • There are activities that a sole proprietorship cannot engage in.

Is it possible to run a Ukrainian business from abroad?


It is possible, but you will need a number of tools for this. As a minimum - an electronic signature and an accountant in Ukraine. Of course, it all depends on the size of your business, but you will need an electronic signature in most cases.

To obtain a signature you will need to come to Ukraine, because the accredited service center must verify the key recipient.

Some Ukrainian banks provide services on electronic signatures for their clients. This is suitable for those who already have a personal account in a bank, for example, if you have registered a sole proprietorship.

As for the accountant - he can be on your staff, or he can provide his services on outsourcing. We offer a combination of accountant + lawyer, who are jointly responsible for accounting, personnel accounting, keeping company accounts and solving legal problems arising in your business. 

The cost of business registration here.


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