Assisted a client from Sweden with extending his marketing business in Ukraine

In November of 2017 services of our lawyers in Kyiv were retained by a citizen of Sweden who wanted to extend his marketing business (aimed primarily at energy sector of economy) by entering Ukrainian market.

In this case, just like in many similar ones, the client needed a comprehensive solution. Business registration included initial advising regarding all aspects of organizing and doing business in Ukraine: peculiarities, advantages and disadvantages of existing business entities (organizational forms) in Ukraine, existing systems of taxation, basics of labor regulations including procedure of foreign citizen employment in Ukraine, minimum salary and many others.

Traditionally projects of the kind require services of nominal business registration address and nominal manager (director) for the period of time until a company can become fully operational. In accordance with local legislation official address of a company can be registered at e.g. location of law firm that provides corresponding registration services. When it comes to services of nominal director, they are necessary for a limited period of time (until a foreign director can obtain his/her work permit) and such duties can also be performed by one of the lawyers registering the business in Ukraine. Such a solution is optimal and trustworthy for a client. At the same time we do not recommend using mass registration business addresses, even despite their affordability. First of all, a significant number of companies are already registered at each such address and proving that the management body of the company indeed is located there would be very difficult. Secondly, such addresses are well known to tax authorities and will cause difficulties when applying for VAT registration certificates as well as in many other situations.

When working with foreign investors or business founders we cover not only legal matters but also those related to bookkeeping and filing tax reports. Also we help during initial stages when the company needs to open bank account in Ukrainian bank, receive electronic signatures for tax reports filing, open salary accounts etc. In this particular case the client also retained our services in regard to drafting of contracts on marketing services with Ukrainian counterparties.

Lawyers of our law firm’s Kiev office provided full legal support of business opening by the foreign client in Ukraine which ensured most comfortable work conditions for the latter. Already within the first month of work the client closed several deals on marketing services and received payment. As soon as the money flow began it became possible to pay company’s director salary and do full scope accounting.

You can learn more about legal services of our firm in Ukraine by following the link.