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How a foreigner can register a company in Ukraine

By

Serhii Aleksandrov

Posted

November 09, 2021

at

07:08 PM

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According to the Doing Business Rating of the World Bank Ukraine ranks 64th out of 190 which is not bad. This article outlines the advantages and requirements to opening a company in Ukraine and furthermore residency.

Advantages of Registering a Company in Ukraine

  • Cheap and easy: There is no state duty for registering a company and all can be done online within 30 mins. Of course, if you do not speak Ukrainian, or you don’t have an address to register your company etc. then you will need help of a lawyer. Still, it will be relatively cheap and easy.
  • Fast track: Your Ukrainian company can be registered within 3 business days. You will need an additional 3 more days to set up the company’s bank account. Typically, if you apply for your company registration on Monday, then most likely you will be able to pay or to receive money by Friday.
  • Low taxes: It is funny that Ukrainians tend to complain about the high taxes they pay. Cry me a river! In most cases a Ukrainian company can pay as low as a 5% corporate income tax!
  • Inexpensive labor: An average salary in Ukraine is around USD 450 per month.
  • Easy relocation: Immigration to Ukraine is quite easy, fast and cheap when you have a company here
  • Convenient geographical location. Ukraine is located between Europe and Asia with access to the Black Sea.

Steps to Register a Business in Ukraine

The process may differ slightly from case-to-case, depending on your situation, especially if you also want to obtain a residence permit in Ukraine. Another example - you can register a company at a the state registrar office free of any charge or do so at a notary office. A notary will charge a fee for this but this may save you time. Let’s now consider a general algorithm of becoming a businessman in Ukraine. If you have done your research and are ready to register a business in Ukraine, then you need to take the following 8 steps:

  1. Determine the company’s name.
  2. Decide on the share capital of your company. It can be as low as 1 Hryvnia.
  3. Find an address for your company. This can be the address of the place you are going to live in Ukraine.
  4. Consider your Ukrainian lawyer or friend to be the initial company director. The first company director must be a Ukrainian citizen. If you plan to be the director yourself you will be able to take the office a bit later.
  5. Obtain a Ukrainian tax ID.
  6. Visit a notary to sign a founding resolution that is your written decision to register a company.
  7. Fill out a registration form.
  8. Submit your founding resolutions and the registration application to a state registrar office.

Obtaining Residency in Ukraine

Those who want to reside in Ukraine to manage your business personally will need to obtain a temporary residence permit. This is also a relatively easy, inexpensive and quick process; although, it consists of a few sub-stages foreseen by several immigration laws:

  • Work permit: Your company needs to list you as its director. To do so it applies for a work permit on your behalf. This is issued within 10 business days. It is an easy process, yet the company will have to pay a state duty for the work permit that is UAH 4540 for a work permit lasting up to 6 months; UAH 9080 for a work permit for up to 12 months; UAH 13620 for a work permit lasting up to 3 years.
  • Director: Having a work permit you now can dismiss your company’s current director and take this post yourself.
  • Visa D04: Now you can obtain a D04 visa which is necessary to obtain a residence permit. Note: visas are not issued inside Ukraine but only at Ukrainian consulates abroad.
  • TRP: With a D04 visa in your passport you can enter Ukraine then apply for your Ukrainian residence which is usually issued within 15 business days.

Understand More About Opening a Business in Ukraine, Obtaining Residency and Other Immigration Matters

Contact Serhii Aleksandrov to schedule a consultation to discuss immigration to Ukraine and general questions about Ukraine.

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