Comparison of LLC and representative office (RO) in Ukraine

One of our first tasks within the services for starting foreign business in Ukraine is to help with the question, “What business structure is more profitable to start a business in Ukraine?”.

In most cases the choice comes down to two options:

• Limited Liability Company (subsidiary) is a Ukrainian company, in which your foreign company will have part or 100% of the authorized share capital;

• Permanent (commercial) representative office of a foreign company.

What business structure to choose in Ukraine depends only on you and on your situation. There are many nuances that will influence your decision:

• Do you want to relocate your workers to work in Ukraine? 

Procedurally, it would be easier to employ them at the representative office.

• Do you need a license to work in Ukraine?

The fact is that there is a specific list of economic activities for which a representative office can hardly obtain a license.

• Which taxation scheme would be more profitable for you?

The answer will depend on many aspects, in particular on your type of activity, the main contractors and volumes.

The lawyers of our company will analyze your situation and offer you the best option.

In this table you can see a comparison of the lawyer of the two most popular business structures in Ukraine for foreign companies:

Separately, we would like to note that the registration of LLC is much easier and cheaper: it usually takes up to two weeks (together with the preparation of documents, their receipt from you, translation into Ukrainian and registration), the registration fee - none. 

Registration of foreign representative office with the Ministry of Economy of Ukraine takes 20 business days (i.e. 1 month). The registration fee is one living wage for able-bodied persons, the amount of which is established by law on January 1 of the calendar year and rounded to the nearest 10 hryvnias.

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In some cases, we offer our Clients simultaneous registration of a representative office and LLC, which helps, if properly organized, to use the positive qualities of both business structures and minimize the impact of the negative effects. 

Of course, we help with the proper registration of activities and advise on how both business structures can operate simultaneously, within the norms of Ukrainian legislation.

If you doubt which way is better to achieve the goal and which business structure to choose — our specialists offer an introductory consultation, at which we will consider your case and tell you which option is better to choose.

Our lawyers will provide you with the following services:

• Advising on the best business structure in Ukraine for your case;

• Consultation of the tax lawyer;

• Registration of representative offices in Ukraine;

• Registration of an LLC in Ukraine with a founding foreign company;

• Assistance with employment of foreign employees in Ukraine, including executives through obtaining service cards or work permits;

• If necessary, we provide services of a Nominee Director for the registration of an LLC in Ukraine;

• If necessary, we provide a legal address for business registration in Ukraine.

In addition, we offer comprehensive legal and accounting support of foreign companies in Ukraine.

If you want to start a business in Ukraine through registration of a foreign representative office or a company in Ukraine safely and efficiently, don’t hesitate to contact us. 

Didn’t find an answer to your question?

Everything about Registration of the Representative Office of a Foreign Company in Ukraine here.

Everything about LLC Registration in Ukraine here.