Business In Ukraine

The beginning is the most important part of the work.


Plato

This section is devoted to potential investors as it describes the legal aspects of foundation and development of business in Ukraine.

Prior to starting commercial activities in Ukraine the entrepreneur is obliged to register a business entity in Ukraine.

The fundamental stage in the process of starting a business is the selection of the form and parameters of the future business, as far as they predetermine structural, corporate, tax and other consequences of activity. The most popular business entity forms in Ukraine are private enterprises and limited liability companies. These forms of enterprises do not require significant financial assets for the statute capital.

The new company shall be controlled by tax authorities, pension fund, social insurance funds. The information about the company will be implemented into the databases of these organs to provide them with the ability to ensure the well-timed payment of business taxes and fees.

 

Our advice is: prior to registration of a company for doing business in Ukraine one should think about the alleged CEO of the company, as if the one is not a citizen of Ukraine, special government permission is required to obtain such position in the company. Obtaining of such permission will involve financial, organizational and time resources.

One of the identifiable requisites of Ukrainian enterprise is its location, which is a concrete and existing legal address. Such addresses will be reflected in all documents of the enterprise and all official correspondence will be delivered there. In this regard, prior to the foundation of an enterprise one should care about the existence of premises, or at least, a legal address.

In order to practice certain kinds of commercial activity the businessman must obtain a special permit - licenses (for such practices as cargo and passengers transportation, broker activity, educational services etc.) or patents (for trade, currency operations, rental of autos etc).

If the investor is planning to register the company and also to build and operate the property complex, he should take into account the necessity to obtain the permission of architectural and urban development authorities and also to approve the project documentation at fire inspection, sanitary and epidemiological and labor protection authorities.

As a whole, business in Ukraine is complicated due to the tangible interference of public element into private activity. The state controls the activities of all business entities through permissive and controlling procedures, including inspections and revisions. Any violations uncovered during such inspections, constitute legal grounds for substantial fines, or other measures of punishment up to prohibition of activity.


For that matter, one of the first tasks of new company should be the organization of business accounting. This is organized either by the foundation of an in-house accountant service or by the involvement of an independent accountant and audit company. As well, regardless of the area of business of the company, the assistance of a legal adviser is highly recommended.


The Ukrainian labor legislation is of a very specific character. It sets out rather strict conditions for the employer and tends to the entire protection of the employee. Planning and formatting of labor relations between the company and the employee is, therefore, one of the most important issues worth managing at the early stages of foundation of business in Ukraine.