Investors can buy a shelf company in Ukraine when they are interested in reducing the time required to start their business activities in the country. Our team can help you purchase a ready-made company.
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What is a shelf company?
A shelf company is a ready-made legal entity that has been incorporated as per the local laws. Buying a ready-made company is an alternative for those who do not have time to complete the full process required for company incorporation in Ukraine.
Can I lawfully use a shelf company in Ukraine?
A shelf company is a legal business and, as long as it is purchased to engage in lawful activities, investors are not subject to special inquiries or suspicion if they choose to purchase a ready-made company.
What is the shelf company used for?
The shelf company can be used to engage in many different types of economic activities, and investors may choose a business that has a specific object of activity that suits their needs. When the shelf company does not engage in commercial activities, it can be used as a holding company, a business used not to provide goods or services, but to hold the controlling stock in other entities (becoming a parent company).
What are the differences between a newly incorporated company and a shelf company in Ukraine?
Some of the differences between a shelf company in Ukraine and a limited liability company incorporated by a foreign investor are summarized by our team in the table below.
| Shelf company | Newly incorporated company | |
| Type | Usually incorporated as an LLC as this is the business form commonly used by local and foreign investors | The type chosen by the investor, however, the LLC is commonly used |
| Name | Already determined, usually a generic name. Can be changed after it is purchased | Chosen by the investor. A preliminary name availability check is needed |
| Capital | As per the minimum capital requirements | As per the minimum capital requirements |
| Shareholding and management | One shareholder. The identity of the shareholder is changed upon finalizing the purchase process. | One or more shareholders, as desired by the investors. They are also the ones to appoint the directors. |
How long does the purchase process take?
Investors should expect at least two working days for the company ownership transfer. The process required to buy a shelf company in Ukraine is considered faster compared to opening a new limited liability company.
What are the post-purchase steps?
Once the transfer of ownership for the Ukrainian shelf company is finalized, the following become relevant:
- Assigning new company directors: the company may have a foreign national as its director. Another option is to use a nominee director service;
- Finalizing the banking details: when the shelf company does not have a bank account, this is opened with the chosen bank branch post-purchase. Banks require individuals to be personally present for this step;
- Handle any required tax registrations (see below for details on the applicable VAT registration requirements in Ukraine);
- Obtain special permits and licenses, depending on the industry in which the company will operate.
Can I change the company’s particulars after purchase?
Yes. As the new owner of the business, you have the option to change the following:
- Name: if available for use, a new registered name can be selected, reserved, and then changed. This means that the company’s constitutive documents are also updated. However, we remind investors that the registered name can be different from the chosen brand name;
- Registered address: when you buy a shelf company in Ukraine, the business is based at a local address that may also serve as the registered address of other companies. This is usually done for convenience by those who sell ready-made companies. As the new owner, you can change the company’s registered address (the one used for official correspondence and for the official company documents). The requirement remains for the new address to be based in Ukraine;
- The share capital and the shareholding structure: you can increase the company’s share capital and add one or more shareholders if in line with your business goals;
- The object of activity: an LLC in Ukraine can have one or more business scopes. The new owner(s) may modify it or add extra activities. Ukraine’s economic activity codes are comparable to the NACE classification.
What are the shelf company’s tax obligations?
Some of the main taxes for Ukrainian companies are the following:
- 18% – corporate income tax rate;
- 0% – withholding tax on dividends paid to a resident company;
- 15% – withholding tax on dividends paid to a non-resident company. This can be reduced under a tax treaty;
- 20% – standard VAT; reduced rates of 0%, 7% and 14% apply.
Our team of company formation agents can help you buy a shelf company in Ukraine. Contact us for assistance during the purchase process, as well as for making the subsequent registrations.
We can also help you if you want to buy a shelf company in Azerbaijan through our local partners.