Ukraine
SETTING UP IN BUSINESS
Introduction
With rich farmlands, a well-developed industrial base, highly trained labour force, and a good education system; Ukraine has the potential to become a major European economy. The economic situation records show high growth during the last three years. Though the country’s long-term economic prospects depend on acceleration of its market reforms. Ukraine encourages foreign trade and investment. The share of foreign trade in country’s GDP has reached nearly 115%. One-third of Ukraine's exports go to Europe, while as nearly one-fourth goes to Russia and the CIS countries.
Our company formation service makes it easy for you to open a company in the Ukraine, so please contact us for further details.
What are the most common types of company in Ukraine?
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Limited liability company (ТOV)
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Jonit-stock company (VAT & ZAT)
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Representative Office (can perform both trading and non-trading activity)
What requirements are there for a TOV?
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share capital of at least 1 minimum official salary which amounts to approximately 80 EUR.
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at least 50% of the share capital must be paid up before company’s registration
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the management board can consist of one person (Director), or several people as an executive board.
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resident director required at the moment of incorporation
What requirements are there for a VAT/ZAT?
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at least one shareholder
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share capital of at least 1250 minimum official salaries which amounts to approximately 105.200 EUR.
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at least 50% of the share capital must be paid up before company’s registration
What are the formalities regarding incorporation?
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drafting of documents and legalization of these by notary
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opening of a temporary bank account for deposition of share capital
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entry in the commercial register
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registration with tax authorities
What is the taxation system like?
There are two systems of taxation for legal entities in Ukraine: the unified taxation and the general taxation.
The unified taxation is applied for small-scale businesses, under which all taxes are combined in one single tax. Legal entities taxed by unified system can choose the rate of the single tax between the following:
a) 6% from the amount of profit from sales of products (goods, works, services),(excise tax not included) VAT 20%
b) 10% from the amount of profit from sales of products (goods, works, services), (excise tax not included), (VAT is not paid).
The general taxation of legal entities includes corporate profit tax (25% from net profit), social taxes (up to 35%) and VAT.
What about banking facilities?
The Ukrainian banking system offers all the facilities that are likely to be required by the international investor. There are also a number of international banks where the foreign investor can open their account. Please contact us to assist you in finding the right bank.
Our company formation service makes it easy for you to open a company in the Ukraine, so please contact us for further details.
