Investors who are interested in company incorporation in Ukraine can choose between several types of companies in Ukraine. In this article, our company incorporation experts list the main legal entities and their characteristics. Upon request, we offer assistance for selecting the most suitable business form for your activities in Ukraine.
| Quick Facts | |
|---|---|
| Main business forms in Ukraine | – limited liability company; – joint-stock company; – partnership (general or limited); – sole trader; – cooperative. |
| Restrictions for foreign investors for any of the available forms | Not the case |
| Most commonly used business form | The limited liability company (LLC) |
| Limited company | The most widely used business form. It offers limited liability for its founders and it is a separate legal entity. |
| Partnership | Formed by two or more partners. It can be limited or general, with the main difference being in the partner’s level of liability. |
| Sole trader | A simple type of entity, with no separation between the founder and the business. |
| Branch | An extension of a foreign company. The parent company is liable for its Ukrainian branch. |
| Representative office | Cannot be used to derive income from Ukraine. It can engage in non-commercial activities (market research, business liaisons, etc.) |
| Founder liability | Depending on the chosen business form |
| Minimum share capital | No minimum for the LLC and other simple business forms. Conditions apply to the joint-stock company. |
| Bank account | Opened in Ukraine |
| Residency requirements | Foreign investors are not conditioned to become residents to open a business. However, their stay in the country for the duration of the incorporation (and afterward) must be based on a proper visa and residence permit. |
| Mandatory presence in Ukraine | Not for many of the company incorporation steps. These can be handled via our local agents. |
| Assistance for choosing the business form in Ukraine | Our team offers complete guidance for foreign investors looking to select a suitable business form. |
| Assistance for those who have additional questions after choosing the business form | Upon request |
Table of Contents
Main business forms in Ukraine
There are several types of companies in Ukraine, each with different advantages and characteristics. Choosing the right business form can depend on the available capital, the number of investors, or the future plans for expansion, among other criteria.
If you want to set up a company in Ukraine, you can choose between the main business forms:
- Limited liability company: suitable for small or medium business ventures, these can be set up by one or more investors and offer limited liability (according to the amount of capital invested in the business);
- Joint-stock company: share many of their characteristics with the limited liability company (including the most important one, referring to the founder’s limited liability), but are more suitable for large corporations as they can be listed on the stock exchange;
- Partnership: can be general (when the founders are fully liable) or limited (when one of the founders is fully liable and the others enjoy limited liability);
- Branch: an extension of a foreign company, it is set up in Ukraine to perform the same business activities and it is not perceived as a separate business from the parent company abroad.
In addition to the aforementioned types of companies in Ukraine, a foreign company can initially set up a representative office in the country. This will simply be used for market research purposes, networking and promotional activities. Our team that can help you with company incorporation in Ukraine can give you more details.
The infographic below contains information about the business types in Ukraine:
This article only briefly lists the main business forms in Ukraine. You can find out more details from our partners: Lawyers Ukraine, Firmengründung in Ukraine, Регистрация компании Украина.
How to choose a business form in Ukraine
When selecting the most suitable type of business entity, investors can take into account the number of steps required for establishment and registration, the requirement to submit a minimum share capital, the ongoing compliance requirements, and the overall costs and fees involved to set up a chosen business form.
Our team can give you more information on how to choose between the types of companies in Ukraine. Our local specialists will provide you with information and tailored recommendations based on your business plan and the industry in which your company will operate.
In addition to helping investors choose between the available types of companies in Ukraine, we offer assistance during all the relevant company formation stages, pre- and post-incorporation.
Taxes for companies in Ukraine
As seen above, investors can choose between several types of companies in Ukraine. The main compliance and reporting requirements can depend on the specifics of the selected type of legal entity and are more complex for corporations (the limited liability company and the joint-stock company) compared to other, simpler business forms (such as the partnership).
We list the main taxes applicable to corporations below:
- 18% general corporate income tax rate;
- 25% corporate income tax rate for financial institutions (except for insurers);
- 20% value-added tax with reduced rates of 7% and 14%. Some types of goods and services are zero-rated;
- 15% dividend withholding tax, unless reduced under a tax treaty.
Choosing to open a company in Ukraine and incorporating one of the available business forms will mean that the founder(s) will be liable for continued compliance.
If you want to set up a business in Kyiv, our team can give you complete information about the registration requirements, advantages for investors, and options for set-up.
Contact our team that can help you with open a company in Ukraine irrespective of the chosen business form.