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