Entrepreneurs who open a business in Ukraine as foreigners gain access to one of the most robust and resilient markets in Europe, coupled with strong foreign-investment-oriented policies. Find out what the most common advantages are when doing business in Ukraine from our local team of experts. If you have already decided to start a business here, this article presents the main company incorporation steps.
| Quick Facts | |
|---|---|
| Entry requirements for EEA citizens | Visa-free for up to 90 days within a 180-day period |
| Entry requirements for non-EEA citizens | Visa required, according to nationality |
| Mandatory residency required to open a company in Ukraine as a foreigner | No mandatory residency requirement for the company founder(s) |
| Residency by investment scheme available (Yes/No) | Yes |
| Minimum investment amount for residency by investment (if applicable) | USD 100,000. Other conditions apply. |
| Relocation with family members for foreign investor residence permit holders | Provided that the family members also apply for residency. |
| Types of companies available to foreign investors | The limited liability company and the joint-stock company are commonly used. |
| Full foreign ownership permitted | Yes |
| Operation costs in Ukraine | Include: the setup costs, corporate taxes, other specific taxes, office and overhead costs (see below for examples). |
| Ukraine payroll costs | 22% of the employee’s salary unified social security contribution. |
| Accounting costs (approx.) | Can start at UAH 1,500 per month, depending on the chosen package. |
| Employment costs (minimum salary) | Monthly minimum wage of UAH 8,000 |
| Office rental costs (approx.) | Depending on region and size, can start at EUR 400 per month for a business centre class B office. |
| Number of companies incorporated each year (approx.) | More than 1,100 new foreign-owned companies opened in 2024. |
| Regulatory environment makes it easy to open a business in Ukraine as a foreigner (Yes/No) | Yes |
Table of Contents
Notable advantages for those who open a business in Ukraine as foreigners
Starting a business in Ukraine is a straightforward procedure for which each key step does not generally require more than one day.
According to the World Bank Group and its published Doing Business Index for the year 2020, the following advantages were apparent for those who wanted to open a business in Ukraine as a foreigner:
- The company registration with the State Registrar required 1 day to complete and included no fee;
- Setting up a bank account could also be accomplished in 1 day. While some banks can charge fees for this process, these are expected to be low;
- The employee registration phase, which takes place once the business is registered, takes less than one day, is performed online and there is no charge for it;
- The costs are minimal and there is no minimum share capital required for opening a business. The country received a score of 94 out of 100 for the time it takes to start the business and a score of 99.7 out of 100 for the expected costs related to the procedure.
The processes required to start a business in Ukraine as a foreigner are aided by local teams of company formation experts, such as our agents in the country. An advantage to keep in mind is that foreign investors can delegate all or part of the formation steps by getting in touch with our team. We can also help you open a company in Holland or any other country, through our local partners. Time frame for incorporation in the Netherlands is 3-4 weeks compared to 7 days in Ukraine.
You can read the information presented in the infographic below about opening a company in Ukraine:
Low taxes and costs for doing business in Ukraine
Foreign investments in Ukraine are encouraged by the lower overall costs for running a business here, compared to Western European countries.
The low tax burden remains a very important advantage and our team highlights the main taxes for companies in Ukraine, compared to the same ones in other European countries:
- The corporate income tax in Ukraine is 18% for most companies and 25% for financial institutions, with the exception of insurers. Some types of companies can be subject to lower rates, such as small companies and agricultural producers;
- For comparison, the corporate income tax rate in Belgium is 25% and 20% for small and medium companies (on their first EUR 100,000 of income);
- In Germany, while the general corporate income tax rate is 15%, companies are also subject to municipal trade taxes and solidarity surcharge, bringing the effective corporate tax rate to 30%.
If you want to open a business in Ukraine as a foreigner, you will also be subject to lower costs with employees and with office-related expenses such as utilities and rent.
Other notable advantages have to do with lower production costs that are generally in place in Ukraine and, depending on industry, lower costs for raw materials.
We invite you to watch a video about how to open a company as a foreigner:
In addition to having low overall business costs, Ukraine encourages and supports investments through economic and legal provisions. The Economic Security Bureau of Ukraine is one of the institutions that ensure the effective governance of the country’s economy.
Despite the challenges that are apparent to those who want to start a company in Ukraine at the moment, there are significant advantages that should also be taken into account.
Foreign investors interested in exploring how they can easily start a business in Ukraine as a foreigner can contact our team for details.