The most common company type in Ukraine is the Limited Liability Company (LLC). Over 650,000 registered companies use this business structure. The reason for the popularity of this business form is attributed to its smooth registration procedures. The processes are as simple as ABC.
If you have chosen to establish a LLC business in Ukraine, you will get a brief description of how to get started with the registration processes. Before going any further, below are the first things to consider for a successful procedure.
To make the registration process much easier, an applicant should do the following:
》Come up with a name for the company;
》Determine the total number of shareholders of the company;
》Choose the director & chief accountant of the company;
》Determine the required capital & plan how shares will be distributed;
》Reveal the company's business activities;
》Have a registered business address (legal seat).
Company nameNumber of shareholdersAppointment of a director & accountant
According to the Ukrainian legislation, LLCs should have a director & chief accountant appointed upon registration. To make things easier, Ukraine allows both positions to be occupied by a single person. Furthermore, foreign individuals can also legally become directors. However, since foreign citizens will need to obtain a work permit first, a citizen of Ukraine can be appointed to act as a director. This is because the foreign director cannot apply for a work permit before the company has been registered.
Share capital requirements
The registration of a Limited Liability Company in Ukraine does not call for a minimum share capital requirement. Thus, applicants can start a company with any amount of charter capital. The charter capital should be raised through contributions from the company's shareholders. And, this charter capital can be in the form of assets or cash. The law requires shareholders to pay their contributions in less than six months from the day of incorporation. They may only delay if the company's charter allows it.
The application form of a LLC is delivered to the Ukrainian Company Register. In this application form, the business activities of the company should be clearly stated. To do so, the applicant should use the codes that correspond to their business practices from the National Classification system. The government of Ukraine needs this information only for keeping statistics. Revealing your company's business activities will neither affect your registration process nor stop you from participating in other activities. What's recommended is for you to include everything that will define the core activities of the business in the Busines
The prospective company should have a legal business address. The address may be obtained by getting a lease agreement or purchasing a non-residential premise. In case that is too costly to bear, the applicant can use a virtual office. SIGTAX in Ukraine can offer assistance regarding virtual offices, legal addresses and services for a secretary.
STEPS FOR REGISTERING A LLC BUSINESS
After understanding and gathering all the information required for registering a company, the following steps will follow.
Filing for registration
The following documents will need to be submittreg
▪︎A completed registration application form;
▪︎The shareholder's General Meeting minutes;
▪︎Corporate documents such as the memorandum and articles of association;
▪︎VAT registration application;
In the case that the shareholder is a foreign legal entity the following should be made available:
• Excerpt from the judicial register;
• A resolution of the non-resident entity about the company formation in Ukraine;
• Power of Attorney (PoA) of the representative of the company.
Please note: All documents that are written in a foreign language should also have a Ukrainian translation. And, the PoA should be legalized through notarization or should carry an apostille. At the notary, the applicant can also notarize signature cards that will be used to create a bank account in Ukraine.
All companies that are formed in Ukraine are required by law to be registered with the country's Tax Authority & Pension funds.
Opening a bank account
When the applicant has successfully submitted the application form and all relevant documents, the next step is to open a bank account. This can be done the next day after dropping the documents at the Registrar.
The procedure for opening a business bank account will depend on the bank chosen. Regarding documentation, you probably should have all corporate documents in place. These include notarized signatures, minutes of shareholder meetings, extract from the register and the charter, etc.
As mentioned before, registering a LLC in Ukraine is not a complicated process. If you manage to provide all the mentioned documents, your company will be registered in no time. The next step is to make sure that your business has a corporate bank account. To do so easily, you should have the company's corporate documents and notarized signatures ready.
If you do not understand the process or fear losing time trying to get things in order, you can use the help of a company formation firm such as SIGTAX. SIGTAX provides experts that can help you throughout the registration process. Thus, you won't break a sweat trying to figure out which documents should be available and where they have to go. SIGTAX will also offer legal counsel so that you make well-informed decisions, during and after the company registration. Ukraine is open for business, whenever you are ready.