Company in Ukraine
Growing number of entrepreneurs is choosing to open company in Ukraine. If your company already exists on the Ukrainian market or you are interested in the Ukrainian tax system, this article is just for you.
General information
Ukraine is a country located in Eastern Europe. It boarders with Poland, Slovakia and Hungary from the west, Belarus from the north, Romania and Moldova from the south as well as with the Black Sea and the Azoy Sea, and the Russian Federation from the north-east. The capital city is Kiev. In 2016, there were more than 45 million inhabitants living on an area of 603 628 km2. The local currency is the hryvnia (UAH).
The Ukrainian legislature did not introduce restrictions for foreigners in regards to the form of conducting business in Ukraine. Company formation in Ukraine is connected with the necessity to pay the share capital. Its minimum amount is about EUR 8.500. Opening business requires paying half of this amount. Company registration in Ukraine takes on average couple of days. Thus, Ukrainian market and good location makes Ukraine more attractive for foreign entrepreneurs.
Taxes in Ukraine
The amount of corporate income tax (CIT) is 18%, while the corporate tax is 20% as in the case of the VAT rate applied only to services rendered and goods sold at place. An agreement on the avoidance of double taxation was signed between Poland and Ukraine, which when used appropriately creates many opportunities for both parties such as exemptions from taxation in Poland of income obtained in Ukraine.
Company registration in Ukraine
Taking advantage of the developing free market, it is possible to open company in Ukraine with a small investment
The most frequently chosen form of conducting business activity in Ukraine, is a limited liability company (TOB). Ukrainian government requires accounting to be carried out by a licensed office, which ensures certain reliability in these services. Company formation in Ukraine is associated with the need for the company to possess a Ukrainian address included in all company documents and postal data. It is possible to purchase an address via a virtual office.
Ready made company in Ukraine
Buying a ready made company in Ukraine is not practiced because it is considered to be an unprofitable solution. It is so due to the fact that it does not take too much to open business in Ukraine.
