Why should you open a company in Ukraine?
- Highly skilled, yet low cost labour
- Strategically close to key markets
- Ukraine is very open to foreign Investment, and new accomodating measures are continuously being implemented
- The country now has a tangible and comprehensive free trade agreement with the European Union
- Small entrepreneurs benefit from special tax regimes aimed at supporting their growth
- Leverage a very quick and hassle-free company formation process, which usually takes 1-3 business days
- Take advantage of the current public sales of big property complexes at attractive prices
Steps for company formation
- Prepare shareholder's documents (all the documents are signed by a Ukrainian notary).
- Setting up a registered office in Ukraine.
- Applying for business registration and then sent to the Register of Commerce).
- Receiving the registration certificate.
- Opening a business account for the company
At SIGTAX, we maintain transparent and straightforward policies. We don’t just tell our clients what they want to hear, but everything they should know. Unlike your regular company formation agent, SIGTAX services do not end with the registration of your company. We offer a wide range of complementary services, other providers in Ukraine can’t or just won’t provide.
Types of companies incorporated in Ukraine
- Limited Liability Company
- Joint Stock Company (Акціонерне товариство)
- Representative Office and Branch Office
- Joint Venture
- Private Entrepreneur
The LLC (or TOB—Товариство з обмеженою відповідальністю in Ukrainian is the ideal option for small to mid-size businesses. In German, it’s known as the GmbH, Polish Sp. z o.o., the Czech s.r.o., the British Ltd, and Russian OOO. The liability of the shareholders is limited to what they invested in the business and in this case their personal assets are not liable to the liabilities of the company.
The Joint Stock Company (JSC) locally known as Акціонерне товариство or АТ, the German, Austria and Switzerland AG (Aktiengesellschaft), the Mexican, French, Spanish and Polish S.A., Russian AO, requires complex compliance and reporting requirements, therefore, it’s mostly suited for large companies. This type of entity is entitled to issue shares. If its shares are held privately, a JSC is referred to as a private limited liability. In the case that its shares are traded publicly, it’s referred to as a public limited liability company.
A representation office, also known as RO can only conduct market research and other non-transactional activities but not commercial ones. Thus it applies to foreign companies that are considering Ukraine but want to explore the market and business environment in Ukraine. In case they want to commence commercial operations, it’ll be necessary to register a Branch Office, also known as a permanent establishment. This form should be registered with the tax authorities.
Known in Ukrainian as the Договір про Спільну Діяльність, this is not a legal entity but joint activity between a foreign investor and a Ukrainian partner with the intention of making a profit or achieve a specific goal.
This applies to individuals who are involved in non-risky type business activities. It’s easy to register for both foreigners and locals.
Taxation for Ukrainian Companies
The taxes in Ukraine are governed by the Tax Code of Ukraine (“TCU”). The main taxes are:
Corporate Income Tax (“CIT”) (18%)
This applies to taxable profits earned by foreigners with a PE in Ukraine as well as resident entities who are in Ukraine and abroad.
Value-Added Tax (“VAT”) (20%)
Charged on the importation of goods and services to Ukraine, as well as the supply of goods and services in the customs territory of Ukraine.
Personal Income Tax (“PIT”) (18%)
Both foreigners and Ukrainian residents are liable to the Personal Income Tax (“PIT”). Foreigners are charged on income sourced in Ukraine while Ukrainian tax residents are taxed on their worldwide income.
Established by municipal authorities, this includes real estate tax, transport tax, land tax
Unified Social Security Charge
This is due from the employer and is charged on both foreigners and Ukrainian residents through a payroll of a Ukrainian entity or a local representative office.
Withholding Tax (“WHT”) (15%)
Mainly applies to the majority of income payments for non-residents, with the exception for companies granted tax exemption under double taxation treaties.
List of countries in which we register companies
It’s a fact that Swiss banks offer a safe haven for assets from around the world. Did you know that for more than 150 years, Switzerland is politically and economically stable?
Belgium has over 80 double taxation treaty partners. Low property prices, yet high living standards A business friendly tax system
Get access to one of the most favourable tax regimes in Europe, 12.5% Corporation Tax and 25% Research & Development tax credit(to mention a few)
High confidentiality of your company information. Zero control over foreign exchange transactions. Get the opportunity to form an entity similar in structure to a foundation, however with the ability to also carry out commercial activities
Lowest VAT rate in Europe(15%). Over 75 double taxation treaties, which which makes setting up a holding company very attractive and tax efficient
Very low tax rates for holding companies. While Malta is also part of the EU, it takes a fairly low cost to set-up and run a maltese company
Get access to one of the world’s leading technical expertise at affordable salaries
A fairly low tax rate of 17% plus multiple channels of government funding
It’s a fact that “Made in Italy” products sale better on the world market The Italian government has also put in place several support schemes and incentives for small businesses.
'Safe haven' for taxes, Get access to the lowest corporation tax in Europe(12.5%). The country has also implemented the International Financial Reporting Standards (IFRS).
The Czech people almost always prefer to buy products or services with a company residing in the Czech Republic. This is also true for business partnerships.