Business establishment in Ukraine as one of the poorly stocked markets
Nowadays many foreigners plan to establish their own business in other country. It can be very profitable because every country has some advantages in comparison with other countries. For example, agro-industrial and agricultural spheres in Ukraine are developed on a very high level and the profit of having business in such spheres in Ukraine can be much higher than in other countries. Furthermore, we can assume Ukraine as one of the last developed markets which is still free to be conquered by foreign companies: for a long time political problems in Ukraine repelled many foreign investors from working with Ukraine. So if you decide to open a business in Ukraine, we highly recommend you to read this article to clarify some aspects of business establishment and registration.
When legal entity or individual wants to open a business in Ukraine, much will depend on the form of organization of the company. Often, while opening a business in Ukraine, foreign investors use the joint-stock company form or Limited Liability Company form. Other forms of business establishment, like group undertaking or representational office can be used as well, but due to some specific restrictions and big quantities of data reporting in comparison with other forms they are rarely used.
Ukrainian legislation allows foreign businessmen to organize new enterprise. It doesn’t matter if they are legal entities or just individuals without Ukrainian citizenship, they can start their own business freely. New company obtains legal entity status right after being registered.
To register a business you have to pass through several phases. First phase is about state registration of a new enterprise. The package of necessary documents includes written statement, copies of statutory records translated into Ukrainian or just passport if the founder is an individual. Also you will need a resolution to incorporate the legal entity and the document that proves payment of a duty. If you are an individual, you have to obtain an individual tax number in Ukrainian fiscal service.
It will take near five days to register your own company. For individuals it will take five days more to obtain an individual tax number.
You can register your business on your own but you will face some obstacles, like the language barrier or some mentality differences, so it will be a wise decision to find a Ukrainian representative, who will register an enterprise by a letter of trust. Ukrainian law firms provide a wide range of services for foreign citizens who want to establish a business in Ukraine. That includes pieces of advice on various issues and aspects, preparations of necessary documents. If you are an individual, you should also pay the attention on the obtaining a residence permit. Ukrainian lawyers are able to help with this as well. Also, even after successful opening of a business you will face some law problems which happen with every business anyway, like contacting with a revenue service or other governmental authorities or some aspects of contract work with clients.
Some investors believe that starting business in Ukraine is unprofitable due to unstable economic situation in country. But, according to “Doing Business” issue, Ukraine entered the TOP- 100 countries according to profitableness of doing business criteria. Ukraine improved its position by 16 places in comparison with last year results and took 96th place. Also, Ukrainian government set a course for improvement of business conditions and they predict the entrance to the TOP- 50 in two years. So, starting business in Ukraine now can become a good investment in future. And all the problems and obstacles of work in Ukraine can be negated by Ukrainian lawyers.
Author: Kydalov Igor
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