Guide to Company Incorporation in Ukraine

1. What is the minimum share capital of a Ukrainian TOB (Limited Liability Company)?
In Ukraine the Limited Liability Company is the most common business form used, mostly due to the low incorporation fees and straight-forward procedures. The minimum capital required for such a company has been reduced since 2009 to 870 UAH (80EUR) of which 50% must be paid up.

2. What is the minimum share capital for a Ukrainian Public AT (Joint Stock Company)?
A Ukrainian Joint Stock Company is designated for business at a larger scale and implies a more complex incorporation procedure. The minimum capital for such a company is UAH 500.000 (53.000 EUR).

3. Are there any special requirements for establishing a Private Limited Liability Company in Ukraine?
Limited Liability Companies in Ukraine are rather easy to incorporate, and foreign-owned companies are generally subject to the same regulations as Ukrainian ones. The founders can be enterprises, organizations as well as citizens. Foreign citizens as well as international organizations can be founders of a Ukrainian company. Usually a Limited Liability Company can be established in Ukraine without the need of the founders travelling to Ukraine. An authorized representative with power of attorney is able to carry on all the required procedures to incorporate the company. However entrepreneurs that need to open a company bank account may be required to travel to Ukraine to sign the bank deeds in person.

4. How can I register for VAT in Ukraine?
VAT registration is compulsory for all Ukrainian companies which qualify as VAT payers. Also foreign companies operating in production or other commercial activities subject to VAT taxation are considered VAT payers and must register with the Ukrainian TAX Authorities. In order to register for VAT companies need to file a declaration form with the relevant tax authorities. Usually this can be done by a company representative authorized with power of attorney to carry out the registration procedures.

5. How can I open a bank account in Ukraine?
Ukrainian entities and foreign-owned companies developing their activity in Ukraine need to open a bank account in which to hold transactions and deposit their capital. Therefore an entrepreneur needs to open a bank account at a Ukrainian bank or at a branch in Ukraine. However, most Ukrainian banks require the presence of the entrepreneur in order to sign the contract in the bank's office. Some banks in Ukraine offer the possibility for an entrepreneur to open a bank account at a bank situated in his or her own country, having a branch also in Ukraine. The founder of the company is advised to do a thorough documentation prior to opening a company in Ukraine.

6. How can I recruit personnel in Ukraine?
As the rate of unemployment is rather high it is easy for companies to find skilled and competitive employers for their companies. There are plenty business websites where companies create company accounts and find employees. Another method is working with a recruitment agency which offers the best suited solutions for different companies.

7. What is the average salary in Ukraine?
The workforce of Ukraine is capable and competitive and the unemployment rate is rather high, especially in the last years. Therefore it is easy for a company to find qualified employees. The average salary in Ukraine is over 500 EUR.

8. What is the overall economical situation in Ukraine?
The economy of Ukraine can be classified as a developed economy given the level of industrial and agricultural output. The country is benefiting from important natural resources. In the last few years Ukraine has been orienting towards market economy going through a political and social transition. The process has become more difficult in the year 2008 as the global economic crisis struck, influencing a rise in the unemployment rate and a drop in the overall productiveness. However efforts to revive certain business sectors have been made and the Ukrainian government offers incentives for foreign investors. The environment for foreign investors is welcoming, non-discriminatory and generally there is no difference made between foreign companies and Ukrainian ones.