Registration of enterprises by the current legislation of Ukraine: rules, procedure and problems of the procedure
Today, I’d like to discuss the significance of registering your business in Ukraine. As you may know, Ukraine’s number of private enterprises has steadily increased over the years, despite inflation, financial crises, and bureaucratic obstacles. Start as a result, starting own business and turning it into a primary source of income has become a popular trend in Ukraine and other democratic countries worldwide.
Despite this, many business owners confront a variety of challenges, especially when their enterprises are just beginning. Registering your enterprise involves several crucial decisions, such as determining the form of ownership, the number of participants, and the income distribution from business activities.
Rational entrepreneurs engage consultants and lawyers during strategic planning to ensure your business can develop rapidly and bring maximum profit to its founders from day one. This is where Western Consulting Group comes into play. Our primary objective is to give our clients with thorough assistance during registration and other business-related matters.
Our primary objective is to give our clients with thorough assistance during registration and other business-related matters. We can help you make informed decisions to prevent further legal issues because we have a thorough awareness of the registration processes, regional laws, and regulations.
If you are considering opening a business in Ukraine and want to assure a smooth registration process, Western Consulting Group is your best option. Let us take the burden off your shoulders and help your business thrive!
How to register a sole proprietorship and an LLC in Ukraine: a list of required documents
Understanding the legal requirements and procedures for registering a sole proprietorship or an LLC is essential when launching a new business in Ukraine. The law on state registration of legal entities sets out specific rules and regulations that must be followed, and certain documents must be prepared in advance.
Weighing the benefits and drawbacks of each ownership structure is crucial when choosing one. For example, registering a private enterprise (PE) may be the most advantageous alternative for some businesses, while an LLC may be more appropriate for others. A qualified consultant can help determine the best option and choose the appropriate taxation system.
If registering an LLC is the preferred option, it is important to determine the types of business activities and to prepare all the necessary documents for state registration of legal entities. Therefore, the Law must submit the following documents on State Registration of Legal Entities, Individual Entrepreneurs, and Public Organizations:
Form 1: This is the registration card of the future legal entity and must be filled out in the prescribed manner and accordance with the samples developed by the legislative authorities.
Minutes of the founders’ meeting: This document certifies the decision to establish a new legal entity or transform an existing one. The original document must be submitted, and a notary public must certify a copy.
The company’s charter defines the basis of the future company’s activities and the principles of dividing the results of such activities (profits or losses) and responsibility for them. A copy of the charter is then sewn together and attached to the list of constituent documents.
Power of attorney: This grants a person the authority to represent the founders’ interests in the relevant authorities during the business registration.
In addition, some cases may require the submission of additional documents, such as a decision from the Antimonopoly Committee of Ukraine or the Cabinet of Ministers of Ukraine on granting permission or consent to the concentration of business entities or documents to confirm the legal transformation of the company.
In our experience, private notaries with the powers of state registrars are the most efficient and professional in performing data entry into the register of legal entities and other registration actions. While the direct registration of a private enterprise or LLC is generally quick, any errors or inaccuracies in the documents submitted can lead to delays or even denial of registration.
In conclusion, registering a new business in Ukraine requires careful consideration and adherence to specific legal requirements. Yet, the procedure may be completed swiftly and effectively with the aid of a trained professional and the creation of the necessary papers.
Step-by-step procedure for state registration of legal entities
To establish a new business entity in Ukraine, entrepreneurs must follow a well-established procedure that involves several stages with a standardized document flow and clear actions. The following is a step-by-step guide to the state registration of legal entities in Ukraine:
Decide to establish a legal entity and document it. Then, an official meeting of all participants in the future business (i.e., its founders) takes place to discuss further the business’s main goals and principles unless the founder establishes the company alone. Decisions made are recorded in the meeting minutes and signed by all members.
Prepare documents for registration in the State Register of Legal Entities and Individuals. The list of such documents includes the company’s charter, the decision to establish the legal entity, and the personal identification documents of the founders. Submit as much accurate data, documents, or extracts from the list as possible to ensure efficient and quick state registration of a legal entity.
After submitting the above documents, obtain an extract from the Unified State Register, which serves as a legal entity’s certificate of state registration. This step is necessary before starting a business, i.e., opening a sole proprietorship or LLC.
Optional step: Submit data on the newly created legal entity to the State Fiscal Service for registration as a VAT and single taxpayer and to obtain a seal, if desired.
The business can be registered formally once all the requirements have been met and the necessary legal entity registration paperwork have been received. The Unified State Register of Legal Entities and Individual Entrepreneurs includes each newly created legal entity. An extract from the USR and the data in this electronic state register serves as a passport for a young company, certifying that the owners of the legal entity carry out their business activities within the law and are taxpayers and payers of relevant fees.
Check whether the name of the company and its legal address are correct after receiving the papers. Verifying the information’s correctness is essential.
While the procedure for registering LLCs and PEs is the same throughout Ukraine, it can be challenging for business people and even some accountants or lawyers to collect and properly execute all the necessary documents. It’s important to note that the reorganization of a company, state registration of termination of a legal entity, and change of a director of an LLC requires special attention and specific skills. Moreover, from year to year, the government adopts new decisions and laws to simplify the work for taxpayers and democratize business in Ukraine. This implies that the registration procedure may be subject to change; hence, it is vital to keep informed of the most recent rules. In such cases, it is advisable to collaborate with a consulting company whose specialists will take care of the red tape of obtaining permits and certificates.
The procedure for state registration of legal entities provides the most convenient and efficient way to register a business officially. Yanovsky & Partners Law Firm of the Western Consulting Group professional services holding can provide detailed advice on how to start a company and do business legally, correctly, and conveniently.
The total cost of registration of enterprises consists of legal services and overhead costs.
We will be grateful if you contact our specialists.