No, but the process does require dealing with the Ukrainian authorities and submitting documents in Ukrainian language. This means that it’s easier to hand the company establishment process to a local partner.
The establishment process itself at the relevant state organ only takes a few business days. Usually the most time-consuming is gathering the necessary documents from the founder. In our experience, the whole process usually takes about 3-5 weeks.
A limited liability company is most often the choice of foreign investors when opening a new business in Ukraine, although some do opt for representative offices if their activity will only be marketing on behalf of the parent company. The cost for opening a LLC in Ukraine is generally approximately EUR 1500.
At least the following documents are required:
Copies of passports of final beneficiary owners of the parent company and the director (if they are physical persons);
Trade register (court register) certificate of the founding company (with all registration information);
Basic data about the founding company (according to the electronic application form, that we will provide);
Written statement by the founding company to register the Ukrainian affiliate office (we will provide the text for it);
Power of Attorney from the founding company.
You will need to employ a CEO for the company from day one. If needed, we can provide a temporary director to act on behalf of the company during its first weeks and the zero-level activity period. You will also need a chief accountant from day one (accounting services can be outsourced to Leinonen). Next, the company bank account needs to be opened, this requires additional documents and participation of the CEO. After you have a bank account, you can send in your share capital.
The minimum capital is not determined, however it cannot be zero. This means you can start a company with for example 1 dollar as capital, but we do not recommend it. As the company will need to have a director from the first day, it will have tax liabilities even if the director is temporary and is only being paid a minimum wage.
Yes, this is possible. We can help you create the needed loan documentation. As the currency control regulations in Ukraine are strict and the banks are interested in foreign capital flows, the registration of such a loan contract at your Ukrainian bank may take 1-2 months. This is also why we recommend to send enough initial capital to last for the first few months of the company.
Usually opening a bank account is included in the turnkey service fee for establishing a company in Ukraine. We can use a bank of your choice, or we can recommend banks that we have had good experiences working with.
The company needs to have a director and a
legal address from day one of its activity. Leinonen Ukraine can provide a
temporary director for your company, as well as an address, until you can find
your own premises and hire the director of your choice. It’s important to take
into account that even though you can establish a company with zero capital in
Ukraine, it is not advised as you will have to pay the director’s salary and
salary taxes within weeks. If you fail to do this, the tax authority will
become interested in the company from the start, which is of course not good.
Apart from the starting capital, most investors opt to finance their company
via a loan from the parent company.
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