Better to call PRAVDOP: legal services in Kyiv

Cost of services:

from 100 USD
Legal Advice Online
Legal advice online
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Reviews of our Clients

One of the principles of our company is to work for results, not for the technical execution of a task. A lawyer must always correctly assess the work and determine the client's need, taking into account their experience and professionalism. Select the best and safest solution for the client. We adhere to this principle in each case of processing the client's order.

Legal consulting for business in Kyiv

Recently we were addressed by a client with a non-trivial task. The client was an investor and intended to supplement the authorized capital of the LLC with an additional contribution (funds of own LLC) to finance the purchase of equipment. This is fairly common practice in the work of lawyers. However, after consulting with the client, we realized that increasing the authorized capital is not the best solution, because:

  • There will be a "dilution" of shares of other participants;
  • The client is not protected from the loss of all invested funds in the case of internal problems or bankruptcy of the company;
  • The client wishes to be a shareholder in LLC as an individual.

That is, the scheme with which the client turned to our company, at first glance, would seem relevant to the client. However, we identified the client's main need - providing a legal entity with the funds to buy equipment. The next step was to find the best solution. And we did.

We offered the Client a loan for an LLC to purchase equipment. Refundable financial assistance allows the client to promptly transfer funds to LLC for the purchase of equipment, while the Client remains on the safe side, as the LLC will repay the loan as profits are made. And if the loan is not repaid, the Client will go to court and collect the funds from the debtor in court.

That is, when the authorized capital funds are contributed, they become the property of the LLC. With a loan, the Client can eventually recover the funds and has leverage over the LLC.

As a result, we have satisfied two criteria of our quality standard at once: we have identified the client's need and found a solution, created the safest option for the client.

You may also like: Tax Planning for Business in Ukraine.

Proofreading and development of agreements in Kyiv

The agreement must be convenient for you to work with, reflect the arrangements of the parties, and be secured for you. These are the main criteria for working with agreements.

Using template agreements from the Internet, you can get negative consequences for your business. We had a situation when the Client was in a hurry to conclude an FEA contract and used a template FEA agreement from the Internet. The seller had agreed to deliver on DDT Incoterms, but the agreement contained DAP Incoterms. And the question of payment of duties and other payments went smoothly into the hands of the buyer.

The Client came to us with this problem and during the negotiations, we managed to come to an agreement and make changes to the agreement. However, the seller could have easily refused to make the changes, which would have caused expenses to the client. It is a typical example when the contract does not reflect the agreements of the parties. And such inconveniences could have been simply avoided if the lawyer had at least reviewed the contract before signing it.

Another example that just made it into our personal top list of the most uncomfortable contracts was the lease agreement for a cotton candy machine. The client wanted to try working as a franchisee and practice this type of business. The client bought the franchise, and the equipment, hired a worker and signed a lease agreement with one of the shopping centers in Kyiv.

The lease, as you understand, provided for the right to use 1m2 in the sales area. When the business failed and the client gave us the lease agreement to analyze the possibilities of early termination we got a certain cognitive dissonance. The terms of the 1m2 lease agreement for the cotton candy machine were equivalent to the terms of the lease agreement that would normally apply for 500+ m2 of space, namely:

  • guarantee payment for 3 months;
  • penalty for early termination;
  • percentage of sales and marketing payments.

If a lawyer reviewed this agreement, the recommendation would have been not to sign it, because those legal relations (rent) between the parties clearly did not meet the interests of businesses that rent 1m2 of space in the mall. As a result, we managed only by negotiations to reduce the fine to the amount of rent for 1 month.

You may also like: Tax Implications of a Joint Operation Agreement

Establishment of non-profit organizations for foreigners in Kyiv

Recently we were contacted by a foreign client who wanted to set up a charitable foundation in Ukraine to help Ukrainians during the war. Of course, this is not a difficult task, which is as honed as possible in our company. However, in order to make sure we understood our client's needs, we had an introductory meeting.

During the consultation it became clear to us that the activities of a charitable foundation, which the client wants to launch in Ukraine, do not involve providing charitable assistance in the meaning of the Law of Ukraine "On Charitable Activities and Charitable Organizations", and the cost of maintaining the organization will reach about 50% of total expenditures of the fund.

Accordingly, such a legal form as a charitable organization is not suitable for the client, since the client in such activities is likely to lose the non-profit status.

We offered to register (accredit) a representative office of a foreign non-governmental organization and we did it. As a result, the client receives the opportunity to implement its projects in Ukraine without the associated tax risks.

A lawyer in Ukraine is your friend and advisor who helps you with complex and simple issues. You should always be frank with a lawyer and talk about problems "as they are" because every detail or nuance can make a difference when it comes to finding the best solution for you.

For example, you want to start a restaurant or semi-finished food production business. Of course, you can look up a lot of information on the Internet, call friends, or find information from other sources. However, without understanding the legal intricacies, you are likely to make mistakes that can have very negative consequences for your business.

On the other hand, a client who turns to lawyers gets simple answers to their questions before they even start investing. Lawyers will help:

  • establish a business;
  • set up business processes;
  • assist with contracts, employment issues, etc.

Any company planning, whether it's a launch of new projects, opening a representative office, or even firing an employee, can have negative consequences if you don't take care of the legal formalities.

You may also like: Obtaining the Status of a Volunteer Organization in Ukraine

Legal services: protection of interests in court in Kyiv

In our work, we had a situation where a client requested assistance in representing his company in a civil lawsuit brought by an employee against the company for illegal dismissal.

After analyzing the documents, it turned out that the employee was indeed illegally fired for absenteeism. The question arises, why didn't the client contact the lawyers when the employee was fired? After all, in this case, the lawyers clearly would have advised and selected a safer way to "say goodbye" to the employee.

The situation had to be resolved in court, although these expenses of time and money could have been avoided.

Legal advice will help you at least protect your own interests, optimize costs and minimize risks. Five tips for beginners and experienced businessmen:

  1. Always be honest and open with your lawyer, and discuss any questions or concerns that may be important.
  2. Involve a lawyer at the start of the project.
  3. Get advice from a lawyer on every issue that matters to your business.
  4. Listen to your lawyer's advice.
  5. Do not try to do the legal work yourself.

And, the sixth piece of advice, the most important one, in any situation is Better to call PRAVDOP. Our lawyers will help you and provide quality legal services for you and your business.

Please contact our experts on all issues in any way convenient for you.

Didn't find an answer to your question?

Everything about doing business in Ukraine here.

Everything about non-profit activity in Ukraine here.

Cost and terms of legal consultations in Kyiv here.

Publication date: 22/12/2022

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