Company Types in Ukraine

  • Limited liability company – Tovarystvo z Obmezhenoyu Vidpovidalnistyu
  • Joint-stock company – Vidkryte aktsionerne tovarystvo
  • Branch office – Predstavnytstvo

Taxation in Ukraine

  • income tax at 20%, or the option of a 3-5% turnover tax for annual turnover of up to approx. €200,000
  • VAT 20%
  • Dividend tax 9%

Time needed to incorporate – 14 days

Setting Up a Company in Ukraine – Fees:

  • Formation of a Ukrainian limited company with a registered office and a Ukrainian director – €2,000
  • Formation of a Ukrainian limited company with a registered office – €1,500
  • Formation of a Ukrainian limited company – €900

Fees in Subsequent Years

  • registered office €450
  • Companies register fee – payable annually
  • Bookkeeping fees – from €150 a year, depending on the number of entries and the complexity of the work

Foreign nationals may act as directors and shareholders, but directors in Ukraine are subject to the following restrictions

  • The director must be a Ukrainian citizen or hold temporary residence in Ukraine
  • A director who is a Ukrainian citizen must receive a minimum net salary from the company of approx. UAH 3,200 (€100) a month, with contributions and taxes of approx. UAH 2,400 (€80), making UAH 5,600 in total
  • A director who is a foreign national without temporary residence in Ukraine must receive a minimum net salary of approx. UAH 30,000 (€1,000) a month, with contributions and taxes of approx. UAH 20,000 (€750) a month

Taxation in Ukraine

A company in Ukraine may choose one of three tax regimes:

  • Flat income tax of 18%; with annual turnover above UAH 1 million (€40,000), the company must register for VAT and also pay VAT at 20% on turnover
  • Flat-rate turnover tax of 3% plus VAT at 20%, with annual turnover below UAH 5 million (€200,000)
  • Flat-rate turnover tax of 5%, with annual turnover below UAH 5 million (€200,000)