Since 2012, Ukraine has been strengthening its position in the global Doing Business ranking, which is compiled by the World Bank based on research on business performance indicators in 190 countries. Improving the business climate helps to attract foreign investors and international companies thinking of opening a representative office in Ukraine. Legal Consulting Center Law Firm, has been working since 2005, will easily provide the necessary legal assistance and relieve unnecessary worries when registering a foreign representative office or subsidiary of a foreign legal entity in Ukraine.
Who are our clients:
Foreign companies (non-resident legal entities) wishing to have a branch of their company in Ukraine, to carry out business activities through it, as well as to represent and protect the interests of the company.
Services we deliver:
Legal Consulting Center will provide a full range of legal and accounting services for registering a representative office of a foreign enterprise in Ukraine:
Providing initial consultation:
- assistance in choosing the most appropriate form of activity: a representative office or a subsidiary LLC;
- business planning and tax advice;
- provision of a preliminary list of documents required for registration of representative offices and subsidiaries of LLC in Ukraine;
- clarification of the norms of the current legislation of Ukraine on registration of representative offices and enterprises with foreign investments, rules for conducting business activities on the territory of Ukraine, reporting and other issues.
Tax and financial planning activities:
Permanent representation office
The tax on repatriation is not withheld when transferring income to its head office.
Tax on repatriation of 15% when paid to a non-resident in payments from income, with a source of origin from Ukraine.
The amounts of income of non-residents carrying out their activities on the territory of Ukraine through a permanent establishment are subject to income tax in accordance with the general procedure.
The rate is set at 18%.
For certain types of income rates can be: 0, 4, 6, 12, 15 and 20%.
* Financing of expenses from the head office is recognized as income of the representative office.
Income tax 18%
Legal support of registration of a LLC representative office or subsidiary:
- preparation of all necessary documents for the registration procedure;
- assistance in legalization of documents (apostille, consular legalization), if necessary;
- payment of state fees and other fees;
- submission of documents to the Ministry of Economic Development and Trade of Ukraine for registration of a representative office;
- obtaining a certificate of registration;
- support of the registration procedure in other government bodies: tax, Pension Fund, making statements in the Unified State Register of legal entities, individual entrepreneurs and religious organizations.
Legal support of economic activity:
- assistance in the selection of personnel and office space;
- execution, development and implementation of internal documents necessary for creating and running a business: contracts, agreements and others;
- maintenance and submission of reports to regulatory authorities;
- obtaining various permits and licenses;
- legal support of transactions, including foreign trade;
- legal support at the stage of pre-trial settlement of disputes;
- representing the interests of the client in the courts and public authorities in disputes.
Important aspects of registration of LLC representative offices and subsidiaries:
Terms and cost of the registration procedure of a foreign representative office or subsidiary
Registration of a representative office provides for mandatory payment of state duty in the amount of $ 2,500 and takes up to 60 business days, while registration of an LLC is not subject to duty and takes 1 business day.
The price of the service for the preparation of documents and support of registration of a foreign representative office in Ukraine is from UAH 14,000 or 500 с.u.
The price of the service for preparing documents and supporting the registration of a subsidiary of a foreign legal entity in Ukraine is from UAH 10,000 or 350 c.u.
Documents for registration of foreign representative offices, subsidiaries
For registration of foreign representative must submit the following documents:
- an arbitrary application for registration of a representative office;
- an extract from the trade (bank) register of the country where a foreign business entity has an officially registered legal entity;
- certificate from the bank where the applicant’s account is officially opened;
- power of attorney to perform representative functions, executed in accordance with the laws of the country where the applicant’s legal entity is officially registered.
These documents must necessarily be notarized at the place of issue and legalized appropriately in consular offices.
Powers of the foreign representative office and subsidiary
Representation is governed by the decisions of the parent company. This means that the head of the representative office can act exclusively within the framework of the power of attorney issued by the parent company. An LLC makes decisions independently, however, it is possible to limit the powers of the director by including the corresponding clause in the charter.
Employment of foreign citizens
The representative office has a simplified procedure for the employment of foreign citizens, but when registering, you must specify the number of employees of foreign citizens and depending on the changes in their number, you must notify the Ministry. In addition, foreign citizens are issued special service cards that are valid throughout Ukraine for up to three years. Employment of a foreigner in a limited liability company due to obtaining permission from the central executive body implementing the state policy in the field of employment and labor migration, for a period of up to one year, unless otherwise provided by international treaties of Ukraine, the consent to be bound by the Verkhovna Rada of Ukraine.
Cooperating with our law firm, the client receives a competent and responsible external consultant who has a staff of specialists of various specializations who speak English.
Whatever the legal task we face, we always provide a qualified and high-quality service.
Specialists who are most familiar with the specifics of the registration of permanent missions of non-residents in Ukraine will cooperate with you.
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