Have a look at the list of advantages / disadvantages the Ukrainian LL.C. and the Representative Office have:
ADVANTAGES
LIMITED LIABILITY COMPANY:
a) The state registration fee is much lower than that of representative office;
b) Larger scope of activities is allowed to carry out simultaneously;
c) LLC registration is to a certain extent adjusted in practice;
d) Ukrainians prefer dealing with legal entities registered under the laws of Ukraine rather than with the questionable RepOffices;
e) The liability of the parent company is normally excluded.
REPRESENTATIVE OFFICE:
a) Less notary actions;
b) Charter capital is not required;
c) Work permits for employees without Ukrainian citizenship are not required. Non-Ukrainians are still required to apply for the temporary residency permit.
DISADVANTAGES
LIMITED LIABILITY COMPANY:
a) Recent VAT legislation is a hurdle;
b) Work permits for employees without Ukrainian citizenship are required. This is a subject to essential amount of paperwork and additional legal fee for carrying out the registration with the State Employment Centre on an annual basis.
REPRESENTATIVE OFFICE:
a) Registration with the Ministry of Economics is comparatively expensive (2.500,- US dollars);
b) The duration of the registration with the Ministry of Economics, Social and Tax Authorities takes up to two months;
c) A rather narrow scope of activities declared prior to the registration is allowed to carry out;
f) Parent company is fully liable for the activities of its representatives in Ukraine (Please get legally advised on this!).
CHECK HOW a UKRAINIAN COMPANY is REGISTERED
Please ask us for advice before taking any action. We are always happy to help.
Sincerely yours,
Alexei Sandakov
CEO, Lobusch Consulting
www.lobusch-consulting.com
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