How Тo Open A Branch In Ukraine?
Opening a branch, or as it would be more accurate to say, a representative office of a foreign company in Ukraine, can give your business the following advantages:
Opportunity to develop your business and tap a completely new market;
Possibility of duty-free import of goods and equipment required for the representative office;
Ability to employ foreign employees in Ukraine without obtaining work permits (these employees must get service cards to work in the representative office);
No taxes on the transfer of funds to the branch office from the parent company.
However, we are talking about a full-fledged business registration, as well as the entry into a market in a foreign country, which has not only its own rules of law, but also local rules of trade, business development.
When registering a branch office, you may face a lot of questions, ranging from whether you need a physical office for a branch in Ukraine, and ending with questions about how to optimize the taxation of the representative office, or how to withdraw money from the representative office to the parent company.
We offer you the assistance of our team of qualified lawyers in registering a branch office of a foreign company in Ukraine on a turnkey basis.
We will help you not only to pass all the stages of the representative office registration, but we can also take over the accounting and personnel accounting of the business for a start to avoid problems with the local tax authorities.
You may also like: Who Can Become a Head of the Representative Office in Ukraine?
Legal advice on registration of a branch of a foreign company in Kyiv
The first thing to remember is that a representative office/branch in Ukraine is not a legal entity. We have already explained here what it is better to choose, registration of a company or a representative office.
To register a foreign branch in Ukraine, you will need to take the following actions:
To effectuate the decision of the parent company on establishment of a representative office in Ukraine;
To fill in and correctly execute the application for registration of the representative office in Ukraine (our lawyers will help you with this step);
To obtain a registration document of the parent company at the corresponding authority in the country of registration;
To execute a power of attorney for the representative in Ukraine who will conduct registration (we will provide you with the draft power of attorney and tell you how to properly sign and certify the document);
To submit documents for registration in Ukraine;
To pay state fee for registration of the representative office in Ukraine (we’ll tell you when and how to do it or we’ll personally make the payment);
To register the representative office with the local tax authorities.
Please note! At the time of writing, as of March 2021, some changes were introduced to the procedure for registering a representative office in Ukraine. One of the innovations is the need to register the non-resident founder of the representative office, i.e. the parent company, with the tax office.
If the activity in which you are going to be engaged in Ukraine, is subject to licensing according to local laws, the representative office will need to obtain the appropriate license. We can help you with this, since we have been obtaining licenses and permits for business for more than 14 years.
Please note! The representative office will not be able to get the license for certain types of activity, or the licensing process will be very problematic. In such cases we can recommend other variants, for example registration of a Ukrainian LLC.
Documents for registration of a representative office shall be submitted to the Ministry of Economic Development, where they are considered within 20 business days (60 business days for representative offices of Russian companies). Our lawyers are able to coordinate the documents with the specialists of the Ministry of Economic Development, which greatly reduces the risk of rejection for formal reasons.
Many Clients ask whether it is possible to operate without an actual office, for example, to conduct IT-activities. You can do without an actual office, but you have to provide an address for registration. This is a so-called registered office address, and we can provide it to you for the registration of a representative office via separate arrangement.
The cost of registration of a branch office of a foreign company in Ukraine in our company starts from UAH 18,000 and depends on the set of services you will need. For example, we can offer the services of a temporary nominee director for the period of registration of a branch in Ukraine, which will simplify the registration procedure, if you subsequently want to appoint a trusted foreign employee as a head of your representative office.
You can choose a package of services that meets your needs in terms of cost and content here.
You may also like: Documents for Registration of a Foreign Branch Office in Ukraine.
Legal services for opening a branch office of a foreign company
Our law company offers you a range of services for the registration of a branch/representative office in Ukraine:
Advising on all issues of registration of foreign business in Ukraine: as a branch, representative office or a separate Ukrainian company;
Preparing documents for registration of a representative office in Ukraine: draft decision of the parent company on the establishment a representative office, application for registration, power of attorney, etc;
Filing all documents for the registration of a representative office in Ukraine to the Ministry of Economic Development;
Conducting the registration of representative offices in Kyiv on a turnkey basis.
We can also provide assistance in obtaining service cards for the employees of the representative office if you want to move your employees to Ukraine.
If necessary and for your greater safety, we offer the outsourced services of our accountant, who can take over the accounting and personnel accounting of the representative office under the supervision of a lawyer.
Do you want to open a branch office of your business in Ukraine? Don’t hesitate to contact us! We can help you register the business in the form you need, as well as organize relocation of your employees to Ukraine.
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