As foreign enterprises begin to explore Ukraine’s post-war recovery and investment potential, a clear understanding of legal entry mechanisms is essential. This article outlines the key procedures and legal considerations for registering a company and starting a business in Ukraine—tailored specifically to the needs of foreign investors.
Why Register a Local Company in Ukraine?
Registering a Ukrainian legal entity offers multiple advantages:
• Access to public procurement and government reconstruction tenders;
• Tax residency and simplified customs procedures;
• Ability to hire local staff, lease/buy land and property;
• Greater credibility and protection under Ukrainian law.
While foreign companies are legally allowed to participate in public tenders in Ukraine, in practice, registration of a local entity significantly simplifies the process. Reasons include:
• The requirement to use Ukrainian-recognized digital signatures (e.g., for Prozorro registration);
• Challenges with providing bank guarantees from foreign institutions;
• Tax complications related to VAT and customs without local registration;
• Preference of procuring entities for resident companies that are subject to Ukrainian jurisdiction and enforcement mechanisms.
LLC vs. Representative Office
Limited Liability Company (LLC): full operational capacity (trade, contracts, investment), registration in 1–3 business days, access to VAT status.
Representative Office: suitable only for non-commercial functions, registration through Ministry of Economy, lacks legal personality.
Step-by-Step Company Registration Process
1. Preparation of Founding Documents
• Company charter (in Ukrainian);
• Decision of the founder(s);
• Apostilled business registration documents for foreign legal entities (no older than one month);
• UBO disclosure with full personal and corporate information as per Ministry of Finance format.
2. Statutory Capital Requirements
• No minimum capital under law;
• Founder-determined amount (commonly from UAH 20,000);
• Must be paid within six months of registration.
3. Appointment of Director and Legal Address
• Director may be foreign or local (foreigners require a work permit);
• Physical address in Ukraine required (not a P.O. box).
4. Registration Timeline
• Typically 1–3 business days after submission to the notary registrar.
5. Post-Registration Procedures
• Open a bank account;
• Tax registration (VAT, income tax);
• Obtain sector-specific licenses.
Optional Licensing and Permits
Depending on your business:
• Construction licenses for EPC projects;
• Import/export licenses for strategic goods;
• Energy market registration (producers/traders);
• PPP or concession approvals.
Local Staffing and Work Permits
• Work permits needed for foreign employees;
• Residence permits for long-term presence;
• Compliance with labor law, contracts, minimum wage, and social taxes.
How We Assist Foreign Clients
We provide:
• Full registration support and structuring;
• Charter and resolution drafting;
• Legalization and notarization assistance;
• Licensing and regulatory compliance;
• Ongoing legal representation and governance.
Conclusion
Ukraine is open to international business, and early entry offers strategic benefits. A legally sound registration is your first step toward participating in Ukraine’s recovery and growth.
Get in Touch with Our Team
📩 Contact us today to begin your Ukrainian market entry:
✉ Email: kyiv@jvs.law
📞 Phone: +380 (67) 465-77-73
