Registration of a company by a foreigner in Ukraine

General issues of registration of a company by a foreigner

Article 26 of the Ukrainian Constitution regulates that foreign citizens and stateless persons on the territory of our country have the same rights and obligations as Ukrainian citizens. In addition to the basic law, the location and activities of foreign citizens in Ukraine are regulated by the Law “On the Legal Status of Foreigners and Stateless Persons”. Registration of a company by a foreigner. The main requirement is that a non-resident of Ukraine must legally stay on Ukrainian territory. For those looking to find out what that means, you can read the Immigration Act and several additional regulations and orders.

A foreigner who wants to open a business in Ukraine, first of all, must choose the organizational and legal form of doing it. Many lawyers advise to opt for LLC. It is a limited liability company (and this is how this abbreviation stands) that is considered the most stable form of entrepreneurship, since a clear and well-thought-out regulatory framework has been developed for it in our country from the already adopted and successfully operating laws that protect the founders.

For determined citizens of other states who have decided to become entrepreneurs in Ukraine, there are certain legislative dogmas and restrictions. So, for example, to register a foreigner SPD(entrepreneurs) – you must have a registered place of residence in Ukraine, and this is possible only if you have a residence permit in Ukraine.

The nuances of registering a business in Ukraine by foreigners

Before starting the procedure for registering a legal entity, you should obtain an identification number or taxpayer card. Without it, unfortunately, it will be impossible to issue a single document with a notary, without which the registration process will be invalid.

Another nuance of domestic legislation is that a newly arrived foreign entrepreneur does not have the right to immediately become the head of a newly created company. To do this, he must at least obtain a work permit. If he does not have such a document, then he should look for a Ukrainian citizen who will take over the management of the company, even if it is formal. Immediately after the enterprise is registered in accordance with the law, a non-resident can obtain a work permit and begin the procedure for changing management. Only now can he occupy a leading position.

Differences in the procedure for registering a company by a Ukrainian and a foreigner

Ukrainian legislation does not allow foreign citizens to hold certain positions. For example, they cannot be lawyers, auditors, notaries. In addition to this, foreign citizens are not allowed to acquire ownership of agricultural land. But rent is a perfectly suitable solution to this problem, which a non-resident has the right to safely use.

When registering an LLC with a solid authorized capital (from 100 thousand US dollars and above), a foreign entrepreneur can become an official major investor, which gives him the right to obtain a permanent residence permit in our country. Domestic entrepreneurs, who are already citizens of Ukraine, do not need this.

List of required documents for the creation of a non-resident company

If we consider the option that a foreign citizen registers an enterprise in his own name, then he must provide the following documents:

• a power of attorney from a notary that a non-resident has the right to sign the charter and register all documents
• translated into Ukrainian, signed by the translator and notarized copy of the passport;
• copy of the identification code
• information about what types of activities the company plans to engage in. That is, the specific field of activity in which the company will operate should be clearly spelled out
• the size of the authorized fund
• what type of executive body will be (for example, a board of directors that will make all decisions, or a separate director with full power)
• form of enterprise taxation

At the same time, no one exempts a non-resident from the need to collect a package of constituent documents, which includes a protocol, a charter of a newly formed enterprise, a completed registration card. If a foreigner has difficulties with the Ukrainian language, then he, most likely, should seek help from specialized legal companies that will help to go through these procedures quickly and painlessly – of course, they will need to pay extra for their services.

Expenses arising from the registration of a company by a foreigner

The cost of starting a business in Ukraine for non-residents cannot be called too high. The following costs are possible:

• For opening a bank account (and without it, it is prohibited to engage in entrepreneurial activity) – about UAH 500.

• For a legal address – from 2 thousand UAH.

• Other assistance provided by law firms.

Summing up the above, we will conclude that, according to the norms of Ukrainian legislation, a non-resident founder goes through the same stages when registering an enterprise, bears the same responsibility and has the same rights as a resident of the country. However, there are several additional points that foreigners need to consider. For example, the need to issue an identification code, have all the documents confirming the legal presence on the territory of Ukraine, etc. If you do everything correctly and have documents drawn up in accordance with the Law, registration will not take more than a few days.