You can expect from a serious local accounting firm to perform the following tasks:

– take over the accounting work-flows of a freshly registered or already operating Ukrainian company or a private entrepreneurship;
– calculate the taxes and submit the respective reports to the local tax and social security authorities;
– pay the taxes through the online banking program of your company;
– prepare the audit reports according to the Ukrainian Accounting Standards (UAS).

An international accounting firm would be able to perform the following tasks (in addition to those of a local firm):

– monthly inner-corporate reporting to the parent company;
– “translation” of the UAS into IFRS and/or US GAAP.

We at Lobusch Consulting are an international accounting and auditing firm. You would choose us if you need a complex approach to all legal, tax and accounting matters of your company. In case you need an urgent intervention associated with the management and accounting of your Ukrainian company please be sure to contact us immediately.

See our offer on accounting and payroll in Ukraine

Please ask us for advice before taking any action. You can do it here, right after this post. We are always happy to help.

Sincerely yours,
Alexei Sandakov
CEO, Lobusch Consulting
www.lobusch-consulting.com

Lobusch Consulting is a German/Ukrainian professional outsourcing company providing advisory and accompanying services to those entering or preparing to enter the Ukrainian market. Legal, accounting, staffing and reporting services are rendered all in one office. We will assist you during the first steps in the Ukrainian commerce so your company reaches safely the state of a stable and successful undertaking.

Please ask us for advice before taking any action. We are always happy to help.

Sincerely yours,
Lobusch Consulting
www.lobusch-consulting.com

There is no obligation for constituent documents or charter capital. Individuals practicing private entrepreneurship have the right to work without a company seal, do not have to open a bank account. Financial statements are very simple and are submitted quarterly with the tax authorities, which can be very well made without any help of an accountant.

One of the main benefits of the private entrepreneurship is the ability to carry out activities under the simplified taxation system. With this tax system there is a limit of 500 000 Ukrainian Hryvnia, and the maximum number of employees is up to 10.

The procedure for registration of the private entrepreneurship is much faster than that of a legal entity (such as the LLC). Registration is carried out at the place of residence.

This legal form DOES NOT allow non-Ukrainians obtain the Ukrainian Work Permit.

Should you choose to register your Ukrainian Private Entrepreneurship, push this button:

Register your Ukrainian Private Etnrepreneurship

Please ask us for advice before taking any action. You can do it here, right after this post. We are always happy to help.

Sincerely yours,
Alexei Sandakov
CEO, Lobusch Consulting
www.lobusch-consulting.com

A Ukrainian Joint Stock Company under the laws of Ukraine has the status of a separate legal entity. This is a common option for banks and large-scale businesses. According to the Ukrainian JSC Law, all JSC’s shall be established as either “public” or “private”.

• Public JSC’s shares are traded publicly and on the stock market. This legal form is recommended for businesses intending to collect substantial capital by a public emission. The majority stake in a Public Joint-Stock Company is granted by 75%+1 share.
• Private JSC’s shares can be traded only by its shareholders. This legal form is commonly chosen for the cases of financing by shareholders.

SHAREHOLDER STRUCTURE

The number of shareholders may only be 2 and more. The existing shareholders might have a pre-emptive right to purchase another’s shareholder’s shares if the charter document state that. The general shareholders’ meeting, the executive board, consisting of at least one director, and the audit committee are mandatory for a Ukrainian Limited Liability Company. Shares must be registered with the State Securities and Stock Market Commission.

CHARTER CAPITAL:

The minimum seize of the charter capital of a Ukrainian Joint Stock Company is is appr. 148.000,- USD.
TAXATION:

Currently (as of April 2012) it is 21% on profit, which is going to be gradually reduced to 19% on January 1, 2013 and to 16% on January 1, 2014. Value Added Tax is 20%. Have a look at our article on the new procedure of the VAT-Payor registration.

Please ask us for advice before taking any action. You can do it here, it this blog right after this post. We are always happy to help.

Sincerely yours,
Alexei Sandakov
CEO, Lobusch Consulting
www.lobusch-consulting.com

Should you choose to set up a Ukrainian LLC of your own, push the button below and proceed to the online company registration form. You will get a free consultation upon submitting your data.

SHAREHOLDING STRUCTURE

The number of shareholders is limited to 10. Once they are 11 or more, Ukrainian LLC has to be converted into a Joint Stock Company. The existing shareholders have a pre-emptive right to buy another shareholder’s shares. The General Shareholders’ Meeting is the highest governance body of any LL.C., its resolutions are adopted with the 60% shares majority.

CHARTER CAPITAL

As of April 1. 2012 the minimum charter capital of a Ukrainian LLC amounts to appr. 130,- US dollars. It might seem quite few, but consider the practice for instance. As soon as your Ukrainian company has been set up, it is going to have to report to the Ukrainian Tax Authority on a monthly basis. Such reporting as well as other expenses are required to keep the company working. 130,- US dollars cannot be sufficient for this and different other cash needs. Common types of subsidiaries financing like mother to daughter company loan are hurdled by the bureaucratic loan registration with the National Bank of Ukraine.

EXECUTIVE BOARD:

Every Ukrainian limited liability company must have at least one director who is responsible for its functionality. For a newly registered company, a foreigner cannot become the director if she/he has not yet obtained the permit to be employed in Ukraine. In such cases an interim director is assigned till the non-Ukrainian director obtains the work permit and the director switch occurs legally. If you do not have any special candidature for the temporary director, one of our employees can take over the function.

TAXATION:

Currently (as of April 2012) it is 21% on profit, which is going to be gradually reduced to 19% on January 1, 2013 and to 16% on January 1, 2014. Value Added Tax is 20%. Have a look at our article on the new procedure of the VAT-Payor registration.

Please ask us for advice before taking any action. You can do it here, it this blog right after this post. We are always happy to help.

Sincerely yours,
Alexei Sandakov
CEO, Lobusch Consulting
www.lobusch-consulting.com

Should you choose to set up a Ukrainian LLC of your own, push the button below and proceed to the online company registration form. You will get a free consultation upon submitting your data.

This article handles the registration process of a Ukrainian Limited Liability Company as a  subsidiary (daughter) company of your non-Ukrainian legal entity. Please visit our website for the company formation on-line procedure.

Step 0. the preparation

you should use the best of your imagination to come up with the name of the future company and the best of your research to decide if you really need this. We insist on a in-depth research of the market that you are going to run in and legal environment of your undertaking in Ukraine, in particular taxation, corporate law and customs aspects. Trust us, we’ve seen companies simply left alone as a result of a poor preparation. If you fail to prepare, prepare to fail. As sad as true.

Step 1. Start with a name!

You provide a name for the future company, we check on its availability. If available, we’ll ask for scans of documents on the shareholder (passport in case of individuals, trade registrar excerpt in case of a legal entity) and his/its address.

Step 2. the power of attorney and the resolution

One or our lawyers drafts and emails the Power of Attorney and the Resolution Minutes on Founding a Legal Entity, in case of incorporated shareholders,  to you with instructions on legalization, you sent it back to us by any courier service to Kyiv.

Step 3. the notary actions

We set up your company using the Power of Attorney within a fortnight. The result will be delivering all corporate docs and an operative bank account if needed.

Voilá! Your company is ready to start working!

Please ask us for advice before taking any action. You can do it here, it this blog right after this post. We are always happy to help.

Sincerely yours,
Alexei Sandakov
CEO, Lobusch Consulting
www.lobusch-consulting.com

Despite this, HSBC predicts for Ukraine a bright future in the long run. In its recently published report „The World in 2050“, it assumes that Ukraine – irrespective of a negative demographic development – will jump 19 positions ahead and in the year 2050 will rank 40th in the list of the biggest world economies. Ukraine would then be one of the most dynamic economies in the next decades.

See the report here.

Please ask us for advice before taking any action. You can do it here, it this blog right after this post. We are always happy to help.

Sincerely yours,
Alexei Sandakov
CEO, Lobusch Consulting
www.lobusch-consulting.com

Ukrainian authorities often have certain requirements to the documents and their legalization. One of that is Apostille.

The Apostille treaty is an international treaty drafted by the Hague Conference on Private International Law. It specifies the modalities through which a document issued in one of the signatory countries can be certified for legal purposes in all the other signatory states. Such certification is called an apostille (French: certification). It is an international certification comparable to a notarization in domestic law.

If your country is a member of the Hague Conference on Private International Law, you will not have to legalize respective documents with the Ukrainian Embassy in your country (which is unfortunately a costly and lengthy procedure). Your documents will have to be notarized by your local notary, then your notary should thereby provide the apostille.

See the list of countries members as well as their reservations and limitations of the Hague Conference on Private International Law here.

Please ask us for advice before taking any action. You can do it here, it this blog right after this post. We are always happy to help.

Sincerely yours,
Alexei Sandakov
CEO, Lobusch Consulting
www.lobusch-consulting.com

Should you choose to set up a Ukrainian Representative Office of your own, push the button below and proceed to the online company registration form. You will get a free consultation upon submitting your data. And yes, it is FREE.

During the registration process of Representative Offices in Ukraine we’ve been asked the following question by our clients :

- If the Ukrainian Representative Office is not having a status of an own legal entity, how can it then enter into agreements in its own name: working agreements? rent agreements? open bank accounts etc.?

We have answered the question commonly with the following:

-IN GENERAL: The legal form of a Representative Office is commonly used by non-Ukrainian companies for carrying out marketing, promotional and other auxiliary and preparatory activities on their behalf. Legally spoken, a Representative Office is an affiliate (a part) of the non- Ukrainian company. However, considering operational activities, it is handled by the Ukrainian executives practically as a separate legal entity. It pays taxes on profit and added value like any other company in Ukraine.

The principle of the Value Added Tax is handled by the Ukrainian tax authorities is basically the same as in the globalizing business world. VAT amounts to 20% and is applicable depending on the art of activities and the volume of particular business. VAT is reported monthly. Pursuant to the current legislation, the Value Added Tax shall be reduced to 17% from January 1. 2014.

Newly registered companies need to accumulate 300.000,- UAH (appr. 37.590,- US dollars) and perform in this area annually in order to obtain the obligatory right to register as Value Added Tax Payers. Those who fail to reach the 300.000 mark lose the right to invoice the VAT, thus becoming unattractive for larger businesses to deal with.

Another crucial issue with the Ukrainian VAT is the import. Importing goods is taxed by the 20% Value Added Tax off the price of the goods. Now the trickiest of all is that, if a company is not registered as an official VAT Payer, this VAT customs clearance becomes irrefundable! A client of ours, a major steel producer from Asia, was directing to loose around half a million US dollars on irrefundable VAT just because it wasn’t registered as a VAT Payer. A tense co-operation between our client, logistics professionals and our management consultancy was required to tackle the issue.

Please ask us for advice before taking any action. You can do it here, it this blog right after this post. We are always happy to help.

Sincerely yours,
Alexei Sandakov
CEO, Lobusch Consulting
www.lobusch-consulting.com