A branch is a suitable option for expanding a foreign company’s operations to another jurisdiction. Our team can help you open a branch in Ukraine.
| Quick Facts | |
|---|---|
| Applicable legislation (home country/foreign country) | Ukraine laws |
Best Used For | Banks and other financial institutions |
Minimum share capital (YES/NO) | No, however, certain requirements apply in case of banks |
| Time frame for the incorporation (approx.) | 7 days |
Management (Local/Foreign) | Foreign |
Legal representative required (YES/NO) | Yes |
Local bank account (YES/NO) | Yes |
Independence from the parent company | No |
| Liability of the parent company | Full liability |
| Corporate tax rate | 18% |
| Possibility of hiring local staff (YES/NO) | Yes |
Table of Contents
What is a branch?
The branch is an extension of a foreign company that is present on the Ukrainian market. Along with the subsidiary, it is one of the two ways in which a foreign legal entity can start its business operations in the country.
What are the main characteristics of the branch in Ukraine?
The branch may be suitable for financial companies, however, all branches share a number of characteristics that deserve close attention:
- Liability: the foreign company opening a Ukrainian branch is fully liable for the debts and obligations incurred by this branch;
- Activities: the branch can only engage in the same business operations as the foreign company; this makes it suitable for financial companies such as banks, however, it may be limiting in other cases;
- Registration: the branch does not prepare its own Articles of Association and Memorandum for registration; the ones of the parent company are used;
- Others: the branch will need to have an appointed representative in Ukraine; the identification details will be included in the branch registration documentation.
How can I open a branch in Ukraine?
The steps required to open a branch in Ukraine in 2026 are different than those for opening a subsidiary, as the branch is not seen as a resident company, which follows the general incorporation steps. A rather simpler registration is available; however, the branch will still need to be properly licensed in order to engage in activities in certain business sectors.
How can you help me open a branch in Ukraine?
Our team offers various company incorporation packages. For the purpose of setting up a branch in Ukraine, we can help you with:
- A complete list of the required documents;
- Details on the licenses and permits that will be required for the branch;
- Assistance with drawing up the registration documents, as well as with document translations and drafting (notarizations, apostilles, power of attorney);
- Branch registration through our agents.
Our incorporation packages include one-off fees, as well as monthly fees should you request recurring services.
Must I open a bank account for a branch in Ukraine?
Yes. Corporate bank account opening is part of the registration process, and it can be assisted by our team. We provide help in opening corporate and personal Ukrainian bank accounts (simultaneously, if this option is selected).
National and international banks offer various options, and the choice depends on the estimated needs of the branch in terms of the number of transactions, fees, app availability and features, lending options, and whether or not the parent company is a client of the same bank.
According to the National Bank of Ukraine, the number of banks operating in the country in August 2025 was 60.
In what industries is the branch used?
A branch is often a choice for companies in the financial industry. Foreign banks, when entering the Ukrainian market, will choose to set up a branch that will function in complete accordance with the parent bank’s already established guidelines. When this is the case, the branch will have to be under the control of the Banking Supervision, operating under the National Bank of Ukraine.
Are there any nationality restrictions for doing business in Ukraine?
There are no nationality restrictions in Ukraine, and foreign companies can freely set up a branch in the country. The nationality of the appointed branch representative is not important. He will act in Ukraine based on the instructions issued by the head office and based on a power of attorney, when applicable.
How long does it take to open a branch in Ukraine in 2026?
The usual company registration process (that for resident companies) is around 7 days, and it is expected that the registration of the branch will take less, given the fact that there is no need to draft and sign the Articles of Association. Branches are registered with the Ministry of Economic Development and Trade, and a registration fee is payable.
How is the branch taxed in Ukraine?
The branch is subject to the regular corporate income tax; however, this tax only applies to the income it derives from Ukraine. The branch is treated as a separate entity from its parent company for tax purposes, meaning that it is taxed the same way as a subsidiary. No branch profit tax is imposed. The following are the most important taxes for companies in the country:
- 18% – the standard corporate income tax rate;
- 0% – the withholding tax on dividends; a 15% rate applies when the dividends are paid to a nonresident company; however, a tax treaty can reduce this value;
- 20% – the standard value-added tax; two lower rates of 7% and 14% also apply, and some types of goods and services are subject to a 0% rate.
Is the branch subject to special accounting and reporting requirements?
A branch is a permanent establishment of a non-resident company that operates in Ukraine. While it submits annual returns based on its accounts, it does so in the name of the parent company (see below).
The branch is subject to annual reporting. The following conditions are relevant in terms of corporation compliance in the country:
- The tax year is the same as the calendar year;
- Companies cannot file consolidated returns, each legal entity files its separate return;
- Corporate income tax returns are due within 40 days after the end of the quarterly reporting period and 60 days of the annual reporting period;
- Corporate income tax is payable within 10 days following the submission deadline for the tax return;
- For reporting purposes, the branch’s corporate income tax returns are submitted in the name of the non-resident entity;
- The income tax return, although submitted in the name of the foreign company owning the Ukrainian branch, is based on the branch’s financial results.
Contact us if you need more details about the Ukrainian branch or how to start a company in Ukraine. We can help you with complete services related to the registration of a foreign business in the country in 2026. We can also help you if you want to open a branch in Egypt or in another country through our local partners.