Peculiarities of registration of charitable foundation in Ukraine, in which non-residents act as founders
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Both for legal entities and individuals can register a Charitable Foundation (hereinafter - Charity) in Ukraine. You just need to know how to do this.
To register a new Charitable Organization (Foundation) in Ukraine is often easier for foreign charities to carry out charitable activities than to accredit a separate subdivision of their organization.
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Registration is the only credible way for foreign citizens (individuals) to properly organize charitable activities in Ukraine.
What is required to register a charitable organization in Ukraine?
To register a Charity with a foreign charitable organization as a founder, the latter shall provide:
- a registration certificate, certified in accordance with the laws of the country where the founder company is registered, and in accordance with the international agreements between our countries;
- power of attorney for persons who will be engaged in registration of the Charity in Ukraine;
- CEO’s documents.
Note! If a Ukrainian citizen is appointed as a Charity CEO, the procedure will be faster and easier, because a foreign CEO needs to obtain a taxpayer identification number and a work permit in Ukraine.
A foreign founder, who is a natural person, shall obtain a taxpayer identification number first. This procedure usually takes three business days.
Therefore, if you don’t want to personally apply to the Ukrainian tax authorities and state registrars, you should contact local specialists for legal support and assistance. They can handle all the paperwork and advise you on the local laws and procedures.
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How to appoint a foreigner as a Charity CEO in Ukraine?
If you still want to appoint a foreigner as a Charity CEO, he/she needs to obtain a work permit.
According to the present law of Ukraine, in order to obtain a work permit, one shall submit a copy of the employment agreement concluded by and between the organization and the future employee to the State Employment Service of Ukraine. Since a foreigner can’t conclude such an agreement with himself, the charity organization shall be first headed by a citizen of Ukraine
In order to avoid the situation when a temporary CEO refuses to resign in the future, it is better to appoint a nominee director or to previously agree upon the conditions of such “employment” with a candidate.
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It should be highlighted that a person is eligible to obtain a work permit only for the occupations specified in the Classifier of Occupations of Ukraine. It might happen that a Charity is already registered and ready to operate, and all you need is to get a work permit for a foreign CEO. But the employment service authorities refuse to grant it, as the position of the governing body is specified in the Charter as, for example, “Head of the Fund”.
But there is no such occupation in the abovementioned Classifier. In this case, the organisation’s Charter shall be amended.
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Why should a foreign CEO get a work permit and is it possible to be a Charity CEO without having it?
A foreigner can be appointed as a CEO without having a work permit. The state registrar does not check it. But then, in the course of business, it may result in problems with the tax authorities and even penalties imposed on the organisation.
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Ukraine provides foreigners with a real opportunity to register and successfully run a Charity in the country. To register a Charity in Ukraine, it is necessary to learn about the peculiarities of the local laws or to contact qualified specialists for legal support and assistance in order to prevent any unpleasant surprises that may arise in the future.