Company registration is the process of establishing a legal business entity that can conduct commercial activities in Ukraine. This procedure is a fundamental step for any business and has many important aspects. It allows for legal and regulated activities, acquires rights and obligations before the law, and provides access to various tools and benefits for entrepreneurs.
Dextra Law legal company offers its expertise in this area to help each client deal with all the nuances of registration and start a successful business in Ukraine.
Choosing a Business Type
Choosing a business type is an important step that should match the goals, risks and limitations. Let’s look at the main types of legal entities:
- Limited Liability Company (LLC). This type of enterprise allows the founders to limit their liability and risks. It is popular for most small and medium-sized businesses.
- Joint Stock Company (JSC). This form of enterprise is suitable for larger projects and is usually associated with the sale of shares to attract investment.
- Sole Proprietor (SP). This is an individual entrepreneur who does business on his own account and is personally responsible for all obligations.
Sometimes the optimal strategy is to create a complex business structure of several legal entities to achieve the best resulting effect for the client. This may include branches, subsidiaries, associations, etc.
When choosing a business type, it is very important to consider the aspects of submitting information about the beneficial owner. The beneficial owner is the person who actually controls or owns the enterprise and benefits from its activities. In the new regulations that came into force on December 1, 2023, providing this information has become mandatory.
The choice of enterprise type affects what obligations and responsibilities you have before the law regarding the provision of information about the beneficial owner. For example, in an LLC this information may be more limited, as the founders may be foreign companies or individuals who are not Ukrainian residents. In the case of a JSC, where shares may be open to the public, this information may be more open.
List of Required Documents and Steps
Business registration in Ukraine requires several mandatory steps and submission of appropriate documents.
1. Choose a business type. Determine which type of legal entity suits your needs (LLC, JSC, SP, etc.), and develop an optimal business structure if necessary.
2. Prepare the charter. If you plan to register a limited liability company or a joint stock company, you need to develop a charter that will define the rules and conditions of operation.
3. Appoint a director.
4. Prepare registration documents:
- Copy of director’s passport.
- Copy of founders’ passports (for LLC and JSC).
- Certificate of contribution of charter capital to the company’s bank account.
5. Request registration. Submit an application for registration to the Ministry of Justice of Ukraine or SP registration body (SPE “UVP” DNS””).
6. Pay taxes and fees associated with registration.
7. Register with banks and tax authorities.
8. Receive a certificate of state registration.
9. Enter data on the beneficial owner in the Unified State Register.
Services We Provide
Dextra Law provides a wide range of legal advice, including the following services:
- Changing activities. We help our clients change the company’s activities, including adding, removing or changing activities according to their needs.
- Changing address (within district). If your company needs to change its legal address within the same district, we provide address change services and update all relevant documents.
- Changing address (from district to district). If you are planning to move from one district to another, our lawyers will help you change the legal address and process all necessary documents.
- Changing last name. We provide services for changing last names for individuals and legal entities. This may include updating the company charter and other legal documents.
This step provides legal status, the ability to conduct commercial activities, acquire rights and obligations before the law, as well as access to various tools and benefits for entrepreneurs.
Legal issues, fines, litigation, as well as loss of rights to benefits and support for business may arise.
LLC opening with VAT includes preparing documents, submitting an application to the tax authority, obtaining a VAT payer code, and subsequent accounting and reporting.