Registering a business is the first step to starting your own business, starting a business, or restructuring an existing business. Our lawyers will help to find a legal address, draw up constituent documents, choose the most optimal tax system, choose the type of activity (NACE) and advise on licenses and permits required for your business.
Today in Ukraine there are more than 1 million registered enterprises of various organizational and legal forms. For example, as of 2021, there are 1 855 000 individual entrepreneurs (FOP – in Ukrainian language), 13 690 joint-stock companies, 28 841 cooperatives, 48 210 farms, and 719 772 limited liability companies. As we can see from the statistics and as practice shows, the most popular organizational and legal forms are FOP and LLC.
|
Individual Entrepreneurs (FOP) |
LLC |
Founders (participants) |
An only natural person (residents and non-residents) |
Individuals and legal entities (residents and non-residents); the number is not limited |
Share capital |
- |
It is formed from the nominal value of the participants' shares |
Founding documents |
- |
Chapter |
Governing bodies |
- |
General Meeting of Participants, Supervisory Board, Director |
Responsibility |
Corresponds to all property of an individual |
Corresponds to the property belonging to the company (within the contributions of the participants) |
Taxation system |
General system and simplified (1, 2, 3 groups of the single tax) |
General system and simplified (only 3 groups of the single tax) |
Method of registration |
1) through the state registrar (in administrative service center); 2) through a notary; 3) online - through the application "DIIA" |
1) through the state registrar (in administrative service center); 2) through a notary; 3) online - through the application "DIIA" |
Let's analyze separately the features of registration of individual entrepreneurs and limited liability companies for residents and non-residents.
Therefore, to make a decision on the registration of a sole proprietorship or limited liability company by citizens of Ukraine, we suggest reading the table below:
|
Individual Entrepreneurs (FOP) |
LLC |
Advantages |
1) Simple registration procedure; 2) You can at your discretion dispose of profits; 3) Simplified reporting procedure |
1) Liability only within the contribution; 2) Participants can be both individuals and legal entities; 3) Opportunity to cooperate with investors and creditors |
Disadvantages |
1) Liability with own property; 2) If the Single Tax, there are restrictions on activities; 3) There is no opportunity to cooperate with investors, large enterprises; 4) You can't sell your business |
1) More complicated registration procedure; 2) Requires accounting services; 3) It is more difficult to withdraw income at will |
Foreigners (non-residents) can open their business to register:
Individual entrepreneur;
Legal entity (most often LLC);
An authorized representative of a legal entity – Representative of the foreign company.
|
Individual Entrepreneurs |
LLC |
An authorized representative of a legal entity |
Founders (participants) |
Only an individual |
Individuals and legal entities; the number is not limited |
Foreign business entity |
Share capital |
- |
It is formed from the nominal value of the participants' shares |
- |
Founding documents |
- |
Chapter |
Chapter |
Governing bodies |
- |
General Meeting of Participants, Supervisory Board, Director |
According to the foreign business entity |
Responsibility |
Responsible for all its property |
Corresponds to the property belonging to the company (within the contributions of the participants) |
- |
Taxation system |
General system and simplified (1, 2, 3 groups of the single tax) |
General system and simplified (only 3 groups of the single tax) |
If economic activity is carried out, income tax is paid |
Method of registration |
1) through the state registrar (in administrative service center); 2) through a notary; |
1) through the state registrar (in administrative service center); 2) through a notary; |
In the Ministry of Economy |
State payment |
- |
- |
One subsistence level as of January 1 |
Advantages |
1) Simple registration procedure; 2) You can at your discretion dispose of profits; 3) Simplified reporting procedure |
1) Liability only within the contribution; 2) Participants can be both individuals and legal entities; 3) Opportunity to cooperate with investors and creditors |
1) Ease of management - the representative office is directly subordinated to a foreign company; 2) There is no need to obtain an employment permit; 3) It is possible to receive tax and customs benefits |
Disadvantages |
1) Liability with own property; 2) If the Single Tax, there are restrictions on activities; 3) There is no opportunity to cooperate with investors, large enterprises; 4) You can't sell your business |
1) More complicated registration procedure; 2) Requires accounting services; 3) It is more difficult to withdraw income at will; 4) When registering, the director must be a director - a citizen of Ukraine |
1) Is not an independent business entity; 2) Relatively longer registration procedure |
At the same time, foreigners should pay attention to the nuances of registering their own business:
- Among the documents required is a notarized copy of the passport with a notarized translation into Ukrainian;
- It is necessary to obtain an identification code in Ukraine;
- In the future, you will need to obtain an employment permit.
In addition to the above organizational and legal forms, others are in demand: private enterprise, joint-stock company, general and limited partnership, farm, cooperatives, public organizations, corporations, unions, and more.
Company registration is one of the activities of our company. We are ready to help you take the first steps in building your business project, we will advise you on resolving issues related to accounting services and obtaining permits and licenses.