In order to establish a company or a business in Ukraine, it is essential to know the basic regulations and laws. Foreign and Ukrainian citizens and legal entities may set up a company in the country. The business becomes a legal entity after being registered. The charter should operate properly. This document should include the following:

  • the name and the registered office of the company
  • the entrepreneurial and operational form
  • the amount of the share capital
  • the scope of the company to be set up and the core objectives of its activity
  • details on the distribution of the profits
  • the organizational structure of the company
  • the terms of the company closure

The benefits of the investment:

  1. Conducting business in Eastern Europe and former CIS countries
  2. New market opportunities
  3. Better taxation conditions
  4. The possibility to create new business conditions

The simplified taxation scheme is noteworthy in the country, which can be favorable to companies or private companies that are engaged in economic activity.

Tax system:

  • Personal income tax is 15%
  • Income tax (general business tax) is 19%
  • Income tax (simplified corporate taxation) is 3-7% (1-20%)
  • VAT is 20%

Forms of social enterprises:

Form Features
1. Joint stock company (AT) its registered capital may not be less than the minimum wage; two forms can be: closed (ЗАТ), and open (ВАТ); the governing bodies are: the general meeting, the supervisory board, the director council/the general director, the audit committee;
2. Limited liability company (ТзОВ) its registered capital must not be less than 100 minimum wages; the leading bodies are: the general assembly of the founders, the director council/general director, the audit committee; its members are only liable for the losses incurred by the company until the amount of the invested capital;
3. Extended liability company (ТзДВ) the share capital is determined and pre-indicated in the memorandum by the founders; he/she shall be liable with his/her full liability of the company for all his obligations; if the assets of the company are inadequate, on the basis of the expanded liability, everyone is responsible for the liabilities of the company as a percentage of the amount invested; the boundaries of this responsibility should be detailed in the founding treaty; according to the relevant law, the minimum capital of the share capital is equal to the sum of the minimum registered capital of the company;
4. Company with full responsibility (ТзПВ) each member of the company has an extended responsibility and he/she is responsible for all the liabilities of the company with all his assets; the manager may be either a member of the company at the same time or a specific member of the company who directs the company on the behalf of all the members of the company; its members can only be registered as entrepreneurs;
5. Commandant company (KT) one or more members are acting on behalf of the company and are responsible for their full liabilities with full private assets (full members); the other members are present only in the activities of the company (investors) on the basis of their investment; full members can only be registered as entrepreneurs;

Opportunities for foreign entrepreneurs thanks to the characteristics of Transcarpathia:

Transcarpathia is considered as the gateway of Ukraine towards Europe. However Transcarpathia is also a gateway eastward to the countries of the former Soviet Union, which can represent a huge market.