STARTING A COMPANY OR A PRIVATE ENTREPRENEURSHIP

Registration of a new business or individual entrepreneurship in Ukraine is a quick procedure, taking 1 day from when the appropriate documents were submitted. You may do it in person via state Centers of Administrative Services or numerous private notaries. Most procedures may also be done online.

Preparation stage consists of getting a Ukrainian Tax ID (for foreign citizens and private individuals-company founders), notarial translation of corporate documents apostilled (for corporate shareholders) and developing a company charter for regulation of the business’ management, shareholders’ relationships and profit distribution.

Up today Ukraine requires licenses for 34 types of activities, for those only, that are potentially harmful to people, the environment or economical security. Many types of licenses are issued online with no expiry date and are searchable.

There is no longer a need to wait for getting work permits for foreign citizens for at least 30 days and to expect often 50x50% denial by state clerk’s discretion. Work permits are now given generally within 7 days.

SIMPLIFIED (UNIFIED) TAX REGIME

Ukraine offers a unique possibility to choose a simplified tax regime with advantageous tax rates for small businesses if certain by-law requirements are met. Legal entities and individual private entrepreneurs can enjoy a unified tax regime (with exemption from corporate income tax).

Both entities and private entrepreneurs can use a simplified tax regime, however foreign citizens, registered as individual entrepreneurs, will be deemed as tax residents of Ukraine according to the Tax Code.

Group 3 of the simplified (unified) tax regime is acceptable for private entrepreneurs and legal entities with any number of employees with the level of income within 1,167 minimal salary as of 1 January of the reporting year (for 2021 this amount is equal to UAH 7002000, except agricultural producers).

This regime foresees a much more low tax rate (5% of revenue for a private entrepreneur/an entity) and easy reporting. Several specific types of business activities are excluded under this tax regime (such as transactions with certain excisable goods, operations with precious metals and stones, currency exchange, company management, communication services).

SHAREHOLDERS’ PROTECTION

An act of Ukraine ‘On limited and additional liability companies’, adopted in 2018, provides major types of private companies with flexible and voluntary corporate governance by the possibility to approve the individual charter and conclude a shareholders’ agreement.

A judicial system reform provided an obligatory power of the supreme court instance’s legal findings for any court or official authority in Ukraine. Supreme Court since then has judged many cases and filled important findings for corporate disputes resolution and shareholders legal protection. Procedural codes in Ukraine were substantially changed at the end of 2017 and now litigations are judged by much more clear proceedings.

PUBLIC REGISTERS

There are more than 70 public accessible online registers in Ukraine providing different information to maintain substantiated business decisions in most business areas. Private owned web services like Youcontrol, Opendatabot and others give comprehensive searches on any company, its legal and tangible position, its ownership and management in real-time. Financial accountings, that companies regularly submit to the state authorities, are also available.

There are several open state sources online, that show a person or a company involvement in any lawsuits or enforcement proceedings, as well as court decisions regarding them.

REAL ESTATE REGISTRATION

Registration of property title on a real estate bought is being provided either by state Centers of Administrative Services or many private notaries and usually takes one day with very little cost. Private notaries may often act as a one-window service for you when buying or selling land plots, buildings, apartments, carrying out both notary certification of the contract and registration of title.

The official state register on real estate proprietary rights is open online, providing information on real estate ownership by user’s search criteria by person or address. You may order immediate SMS information on any changes with your immovable property in the register.