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