Ukraine is one of the largest countries in Europe and it offers plenty of opportunities to those interested in starting new businesses or expanding existing ones. Local and foreign investors who want to open companies in Ukraine must go through several procedures which are easy to complete, but most importantly, will enable them to operate on a fast-growing market.
If you want to open a business in Ukraine and need assistance, our lawyers are at your disposal with tailored services, so you can benefit from a quick and correct company registration procedure. You can also rely on us if you are a foreign citizen and want to move here by starting an enterprise.
| Quick Facts | |
|---|---|
| Who can start a company in Ukraine? | Local and foreign investors, with equal treatment under the local law. |
|
Available legal forms |
– individual enterprise, – partnership, – private limited liability company, – public limited liability company. |
|
Mandatory tax number for founders/directors |
The persons involved in the company must have a Ukrainian tax code (Taxpayer Identification Number). |
| Recommended form of legal entity | LLC (TOV) – flexible and frequently used |
| Legalization of foreign documents |
Documents issued outside Ukraine must be translated into Ukrainian and legalized/notarized before submission. |
| Duration of registration |
Approximately 2–3 weeks |
| Official register of companies in Ukraine |
All companies are registered in the Unified State Register (USR), managed by the Ukrainian authorities. |
| Liability of individual entrepreneurs |
In the case of an individual enterprise (sole trader), the owner is liable with all personal assets. |
| Required documents for employing foreigners |
– work permit, – application form, – copies of the foreigner’s passport, – color photo 3.5×4.5 cm, – employment contract/ gig-contract, – proof of payment of the fee for issuing/extending the permit. |
| Attractive areas for investments in Ukraine |
– agriculture, – mineral resources, – industry, – IT. |
| Is it necessary to have a local partner? (YES/NO) |
NO – both non-resident individuals and legal entities can fully own a company in Ukraine. |
| Presence of founders at registration in Ukraine |
It is not mandatory. The process can be carried out through a power of attorney by our Ukrainian lawyers. |
| Foreign company director in Ukraine |
Can be a foreign citizen, but requires a work permit prior to appointment. |
| Possible challenge in opening a business in Ukraine |
Official documentation and administrative interactions are predominantly in Ukrainian, and cultural differences can affect business processes. That is why our Ukrainian specialists in company formation can assist you during this entire process. |
| Legal assistance available (YES/NO) | YES, throughout the incorporation process from our law firm in Ukraine. |
The main types of entities for investors who want to open a business in Ukraine
Ukraine is an open country when it comes to foreign investments, and entrepreneurs from various parts of the world will benefit from equal treatment when it comes to opening companies here. According to the national legislation, there are several types of business entities these can employ in order to conduct operations in Ukraine:
- sole proprietorship, which is intended for single business owners who can engage in professional activities, such as medical practitioners and accountants;
- partnership, which is a great way of exploring the Ukrainian business environment alongside a partner;
- private limited liability company, which is the most advantageous way of starting a business in this country;
- public limited liability company, which is suitable for large projects.
Foreign companies can also expand their operations in Ukraine, subsidiary and branch being the two main ways through which these can make good profits. Foreign business owners interested in first prospecting the market can set up representative offices through which they can explore and even create business associations for their future endeavors.
Our law firm in Ukraine is at the service of foreign and local investors interested in exploring this interesting business market and who decide to open a company in Ukraine. Our lawyers can also help you start a business in Ukraine with no requirement for a minimum share capital for LLC, in approx. 2-3 weeks.
How to prepare to start a business in Ukraine
In order to avoid setbacks, it is worth noting a few aspects one can consider before starting the company registration process with Unified State Register (USR), and our Ukrainian attorneys can facilitate the entire process. Among these, here are the most important:
- trading name – all companies (except for sole proprietorships) must have unique names that can be verified before registering the company;
- legal address – it is a good idea to secure a registered address before incorporating the company (initially, the virtual office can be a suitable solution);
- corporate bank account – this is the lengthiest procedure when opening a company, which is why, after drafting the registration documents, the business owner can file the papers for opening the account.
Foreign investors can consider an additional step, and that is to obtain a residence permit and, through it, relocate to Ukraine.
Our lawyers are at the service of those who want to start a business in Ukraine and provide assistance throughout the entire incorporation process. Moreover, some of the procedures can be handled by our team before the business owner’s arrival.
Our lawyers can also help you apply for Ukrainian citizenship by investment.
Business registration steps in Ukraine
The following steps need to be respected if you want to open a business in Ukraine (provided that the owner has all the documents in place):
- Filing the papers with the Trade Register in the city where the business will operate;
- In Ukraine, VAT registration becomes mandatory when you exceed the legal threshold for the volume of taxable transactions (based on the last 12 months). The threshold mentioned is UAH 1,000,000 / 12 months;
- Applying for the necessary licenses, depending on the industry in which to operate.
Our Ukrainian lawyers can help you if you want to start a business in Ukraine in accordance with the selected type of legal entity and the industry it will carry out its activities in. We are also at your disposal if you want to apply for permanent residence in Ukraine.
How easy is it to set up a business in Ukraine?
After choosing the form of desired business (TOV -limited liability company with obligate charter capital, PP – Private Enterprise, TDV – additional liability company, PrAT – private joint-stock company, PuAT – public joint-stock company, general or limited partership) and filling the necessary documents for registration, the whole process of incorporation in Ukraine don’t take longer than three weeks.
The applicant must also know that there are some minimum share capital requiremnts for certain types of businesses opened in Ukraine, for example a limited liability company (LLC/TOV) has no legal minimum share capital threshold (it is established by the founders), while the joint stock companies created in Ukraine must provide a minimum of 200 wages for the authorized capital of a JSC (calculated at the minimum wage valid at the date of registration).
We are at your service if you want to open a company in Ukraine.
How easy is it to hire personnel in Ukraine?
The process of hiring personnel in Ukraine is not very complicated for the local entities, while the employment of foreign entities requires a work permit, which can be obtained from the Employment center if certain documents are deposited.
These documents are:
- Application on the form established by the Cabinet of Ministers (includes a statement that the position does not require Ukrainian citizenship and does not involve access to state secrets);
- Copies of the foreigner’s passport (pages with personal data) + translation into Ukrainian, certified according to the requirements;
- Color photo 3.5×4.5 cm;
- Draft of employment contract or gig-contract (employer certificate);
- Proof of payment of the fee for issuing/extending the permit (attached to the file).
If the work permit is not received from the first attempt, the applicant must wait a year before reapplying. We can guide you if you are planning on moving to Ukraine.
We are also at your service if you want to open a company in Ukraine.
What are the main points of interest for foreign investors?
Because of its position in the Eastern Europe, bordered by the Black Sea, Ukraine is considered a gate to the European markets. The most developed sector is agriculture, due to the fact that approximately 25% of the “black soil” (chernozem) is owned by Ukraine. The deposits of titanium, zirconium, iron, and manganese are also attracting the industrialized foreign companies. This is also one of the greatest reasons for you to open a company in Ukraine.
The fiscal policy is also encouraging the investments as the standard Corporate Income Tax (CIT) rate is 18% (with exceptions, e.g. financial institutions/banks have increased rates in certain years).
There are 70 double tax treaties concluded between Ukraine and other countries, and a free trade agreement was signed with Russia, one of the biggest economic powers in the world.
What are the advantages of a holding company in Ukraine?
The major advantage of the holdings companies if that company owns more than 20% of the shares in Ukraine is that the dividends received from it are not subject to the 15% taxation.
If you want to open a company in Ukraine as a holding, we can help you.
Special Legal Regime – Diia City
If you are interested in opening a business in Ukraine as an investor, a key topic is the Diia City special legal regime, created to support the IT sector and innovative industries. Launched by the Ministry of Digital Transformation, this framework offers a competitive and flexible tax environment for tech companies, startups, R&D, gaming, fintech, and other digital activities.
Resident companies can opt for standard corporate income tax (18%) or an alternative regime based on distributed income taxation (similar to the Estonian model). In addition, the regime allows for the use of “gig” contracts, which offer more flexibility than a classic employment contract, while maintaining clear legal protection.
Diia City offers guaranteed long-term legislative stability, an essential element for foreign investors seeking tax predictability in a dynamic economic context.
For any legal matters involved in this process, our attorneys in Ukraine can assist you and provide legal advice.
Tax considerations if you want to open a company in Ukraine
The taxation system in Ukraine is supervised and regularized by the State Fiscal Service. Here are the main aspects to consider from a taxation point of view when running a Ukrainian business:
- The current corporate tax rate is 18%.
- The standard VAT rate is 20%; however, a lower rate of 7% applies to pharmaceutical products.
- The VAT mandatory registration threshold is 1 million UAH (approx. 43,000 EUR).
- For CIT, the usual deadline for annual declarations is 60 calendar days after the end of the year (and quarterly, 40 days after the quarter).
- Non-residents are also subject to withholding taxes on dividends, interests, and royalties at a rate of 15%.
The entire procedure to open a business in Ukraine takes around 4 weeks to complete, which is why if you are considering setting up a company here, we recommend using our services in order to avoid delays. The quickest business form to register is the private limited liability company.
Do not hesitate to contact us for tailored support if you want to open a company in Ukraine.