Starting your business in Ukraine

REVERA’s specialists will gladly consult you on the available formats of doing business in Ukraine, suggest a corporate form for your lawful presence in Ukraine, assist with operating management of your company (CEO’s functions), assist with recruiting employees for your Ukrainian office (including foreigners), resolve migration issues, grapple taxation regulations, or lend other support for starting your business in Ukraine.

Key forms of doing business in Ukraine

Limited liability company

Limited liability company (in Ukrainian – товари́ство з обме́женою відповіда́льністю, abbreviated as ТОВ) – is the most sought-after corporate business form in Ukraine.

Key aspects:

  • no requirement for minimal registered capital
  • 1+ founder(s)
  • natural or legal persons may act as founders, including foreign persons (a foreign natural person must acquire a taxpayer’s identification number)
  • no restrictions as to CEO’s nationality (however, a foreigner must obtain a work permit and a temporary residence permit)
  • local registered address is required
  • corporate seal is not required
  • fits for almost any sector of economic activity
  •  may be conducted by a representative
Natural Person Entrepreneur

Natural Person Entrepreneur (in Ukrainian – фізична особа-підприємець, abbreviated as ФОП) is the Ukrainian equivalent for individual entrepreneur.

Key aspects:

  • simplified bookkeeping and accounting control, as well as simplified business procedures
  • foreigners may be registered as individual entrepreneurs
  • NPEs may hire employees
  • fits for many sectors of economic activity, including IT
  • no requirement for temporary/permanent residence (and IE status does not entitle to such permits)
  • taxpayer’s identification number is required
  • may choose the simplified taxation regime
  • seal is not required (however, electronic digital signature is required)
  • local address may be confirmed by a residential lease agreement 
  • after registration, all records shall be made in writing or online
  • registration may be conducted by a representative

Labour & migration law

Work permit

Key aspects:

•    allows a foreigner to enjoy official employment
•    allows a foreigner to obtain a temporary residence permit
•    not required if foreigner has a permanent residence permit
•    on the basis of employment in a specific company in a specific position
•    minimal required salary, except for certain categories such as IT specialists and company owners employed by own company (amounts to 10-fold minimal salary)
•    issued for 1 to 3 years, further extension possible

Ukrainian temporary residence permit

Key aspects:

  • an official identification document in Ukraine
  • required for employment in Ukraine under a work permit
  • entitles holder to residing in Ukraine
  • medical insurance required for the entire duration of permit
  • issued for up to 3 years (the same duration as for work permits), may be extended

A temporary residence permit may also be obtained for foreigner’s volunteer activities, cultural, scientific or educational work in Ukraine. In such a case, a corporate application is required. Residence permits for volunteer activities are issued for 1 year.

Permanent residence permit

Key aspects:

  • entitled holder to reside, be employed by any company and/or carry on any business (without a work permit) in Ukraine, and to all rights granted by the Constitution to Ukrainian citizens (except voting rights, right to hold offices and military service)
  • obtained on the basis of an immigration permit
  • issued for a period of 10 years, further extension possible
  • a simplified immigration procedure for IT specialists within an annual quota (5,760 persons for the year 2021). Specific requirements include relevant operational background (at least 3 years) and university degree / relevant technical certificates / proven salary of at least 24,000 US dollars in the aggregate during previous labour year

How can we help?

  1. Supporting creation of LLC (ТОВ)
    • o    preparing required (corporate/employees’) documents – original documents or attesting copies 
      o    preparing/attesting (corporate/employees’) proxies
      o    apostillising documents 
      o    notarised translation of Belarusian documents 
      o    obtaining taxpayer’s identification number and related documents 
      o    preparing/signing constituent documents (articles of association, founders’ protocol/resolution), state registration 
      o    ordering corporate seal
      o    obtaining electronic digital signature
      o    registration with taxation authorities, pension fund, statistical bodies
      o    preparing an employment contract with company CEO
      o    concluding a lease agreement (for your registered office)
  2. Supporting registration as NPE (IE)
    • preparing required documents – original documents or attesting copies
    • preparing/attesting (corporate/employees’) proxies
    • apostillising documents 
    • notarised translation of Belarusian documents 
    • obtaining taxpayer’s identification number 
    • state registration 
    • obtaining electronic digital signature
  3. Employing a foreigner CEO
    • obtaining identification number 
    • preparing draft employment contract, filing documents required to obtain a work permit
    • employment procedures for CEO, introduction of alterations into the Register, bank data, etc.
  4. Exercising CEO’s functions
  5. Carrying out job placement formalities when opening business
    • formalising work permits for company’s foreign employees
    • preparing draft employment contract for company’s foreign employees 
    • obtaining temporary residence permits for employees
    • obtaining temporary residence permits for employees’ spouses and/or minor children
    • registering NPEs
  6. Consulting on choosing a taxation system 
    We will help grapple the subtleties of Ukrainian simplified and general taxation systems, VAT and other taxes applicable to your employees.