The most common form of doing business in Ukraine is a limited liability company.

Documents required to register and establish an LLC in Ukraine:

  1. Notarized power of attorney
  2. Application for the registration of a new legal entity
  3. Two original hard copies of the minutes from the founders meeting/the founder’s resolution on incorporating a new legal entity  
  4. Two original hard copies of the signed charter  (under Ukrainian law, the charter of a newly created LLC MUST be signed by all participants in the presence of a notary)
  5. At your discretion, an application opting for the simplified tax system and/or application for state registration as a VAT-payer (sales tax) 

The following information is required for your LLC application:

  1. Details of the registered office where the company will be located (can be provided)
  2. Information regarding the main types of business activity
  3. Details of the executive body, along with notarized copies of their passport, identification code, and address of registration.
    1. NOTE – Due to the peculiarities of Ukrainian law, a LOCAL MUST be appointed the director of a newly created company, as a work permit is required for a foreign national before the company can employ such a foreigner.
      1. Once the local director is in place, they may file an application for a work permit for the expat.  As such, these documents can be prepared in parallel with the incorporation of the company.
  4. The amount of authorized capital (can be nominal such as UAH1000 and no minimum requirement)
  5. Information about the ultimate beneficial owners (UBO) of the founder
    1. Ukrainian law requires the following information to be provided about the UBO:
      1. Full name 
      2. Date of birth
      3. Personal tax ID number
      4. Passport information 
      5. Country of citizenship
      6. Address of place of residence

LLC Registration Timeframe

Once the documents are in hand, it typically takes about 1 or 2 working days for the company to be registered, but this varies.

If the company is to be registered as a VAT payer, its details will appear in the respective register of VAT-payers within 3 working days following the date of the application.  In order to become a VAT-payer for the first day of a calendar month, following the application’s submission, then the application MUST be submitted no later than the 10th of the month.

Appointment of Foreign Citizen as a Director of a Ukrainian Company

Ukrainian companies are entitled to employ foreigners after obtaining a permit of employment (often referred to as a “work permit”).

In order for a foreigner to have the right to temporarily reside in Ukraine, they must apply for and obtain a long-term visa “Type D” issued by the consulate of Ukraine.  Once in Ukraine, they may apply for a temporary residence permit (process below). Furthermore, to receive remuneration and pay the required taxes in Ukraine, a foreigner employed by a Ukrainian company must apply for and obtain a registration number for a tax-payer (commonly called a “tax ID”).

The process for the work permit takes around 2 weeks though as with everything in Ukraine, it varies.  There is a fee of six months’ living wages ($450) to acquire the permit. The following are requirements to apply for the work permit:

  1.  An application by which the employer (the newly founded LLC) confirms the position for which the foreigner will be employed, is not related to the citizenship of Ukraine and does not require access to state secrets
  2. Notarized copies of the foreigner’s passport with a translation into Ukrainian 
  3. A color photo of the foreigner sized 3.5 x 4.5 cm
  4. A copy of the employment contract with the foreigner that is certified by the employer (newly founded LLC)

Temporary Residence Permit Process

Application documents, which must be issued by the employer, signed by its director, and stamped with a corporate seal:

  1. An application of foreign citizen for the temporary residence permit
  2. A valid medical insurance certificate
  3. A work permit 
  4. An undertaking of an employer to inform the issuer and the relevant body of the state employment service of early termination of the foreigner’s employment
  5. Four 3.5 x 4.5 cm color photos on matte paper
  6. The foreigner’s passport and copies of the passport with a Type D visa
  7. A notarized copy of the translation of the pages of the passport
  8. Documents confirming payment of the state and administrative fees for the issuance of the temporary residence permit ($30)

Validity term of the Temporary Residence Permit and its issuance

  1. The temporary residence permit is issued for the term of the Work permit, and may not exceed the term of the validity of the foreigner’s passport.
  2. The temporary residence permit is issued within 14 calendar days (though this can vary) after submission of the documents and must be collected personally by the foreign citizen.
  3. To extend the term of the temporary residence permit, a foreign citizen or their representative must submit the application documents at least 15 days prior to the expiration of the current temporary residence permit.

Tax Identification Code

To receive remuneration, and pay the required taxes in Ukraine, a foreign citizen employed by a Ukrainian company must be assigned a Tax Identification Number.  A foreign citizen who has obtained the temporary residence Permit may register as a tax-payer in Ukraine with the department of the state tax authorities according to the place of the foreign citizen’s residence specified on the temporary residence permit.

Required documents:

  1. An application according to the form established by the regulations on taxpayer registration
  2. A document identifying a foreign citizen that is notarized and translated into Ukrainian 

If the application is submitted by an authorized person on behalf of the foreign citizen, then one must also submit a power of attorney.

Cost and Duration

The total cost to register an LLC and obtain all the relevant documentation, work permit, and temporary residence permit will be roughly $2500 and generally takes 60 days to complete the entire process. For a complete breakdown, checkout out “How Much Does it Cost for a Temporary Residence Permit“.

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