Types of companies
There is a wide range of ways to incorporate your business in Ukraine. The ongoing modernisation of Ukraine’s corporate law approximates its regulatory framework to global standards providing investors with well-known and transparent instruments.
Ukrainian law provides for the establishment of a wide range of internationally recognized business structures, including:
- Limited Liability Companies
- Joint Stock Companies
- Joint Ventures
- Representative Offices
Upon investors’ decision as to what entity type fits their purpose most, business will have to undergo a registration procedure. These procedures vary depending on a company type and differ in terms of documents required, responsible authority and timeline.
An LLC can be registered online via a special web-portal of the Ministry of Justice. Both online and offline registration takes up to 24 hours and are free of charge.
The founders of pa JSC should also submit a package of documents to the Ministry of Justice. Before that, a private offering of shares among themselves needs to be registered with the National Securities and Stock Market Commission, which also approves the results of the private offering and issues shares ownership certificates to JSC’s founders. The overall JSC registration process usually comes down to 3 months.
Unlike LLCs or JSCs, a representative office is registered with the Ministry for Development of Economy, Trade and Agriculture. State duty amounts to USD 2,500. The registration process takes up to 60 working days. Registration application consists of a filled-out application form, a document certifying incorporation of the parent company and a bank reference regarding accounts of the parent company.
Engaging in certain business activities in Ukraine is subject to government authorization. Some thirty business profiles are given this special attention by means of the so-called licensing procedure. The procedure applies to, among others:
- Banking and Financial Services;
- Telecommunication Services;
- Generation, Transmission and Distribution of Electric Power and Nuclear Power Use;
- Education Services;
- Production and Distribution of Alcoholic Beverages and Tobacco Products;
- Production, Distribution and Storage of Petroleum Products, Liquefied Natural Gas, Motor Fuels, etc.
- Data Encryption Services;
- Construction of Objects of Medium (CC3) and High (CC2) Class of Consequences
- Production, Importation, Distribution and Sales of Pharmaceuticals;
- Manufacturing of Non-military Firearms, Ammunition to Them, Cold Weapons and Air Guns;
- Recycling, Storage and Burial of Household Waste;
- Production, Transportation and Supplies of Thermal Energy;
- Water and Sanitation Services;
- Transportation of Passengers and Dangerous Goods, International Road Transportation.
There are usually separate licensing conditions for each of the respective business activities. Licensing conditions may include requirements regarding personnel, logistics, technology, reporting, charter capital, etc., and prescribe an exhaustive list of documents necessary to certify compliance with these conditions.
Registration of a trademark procedure can take from 14 to 18 months. However, trademark protection is effective as of the application date. Applicants can choose to undergo an accelerated procedure taking up to 9 months. Trademark protection period is 10 years. As well as in most European countries, trademark protection may be prolonged for another 10 years.
The industrial designs protection period is 10 years and is subject to prolongation 5 years.