FAQ

The legislation of Ukraine establishes requirements as to the minimum size of registered capital for Limited Liability Companies (LLC) and Joint-Stock Companies (JSC). The minimum statutory registered capital amount constitutes a specified amount of minimum salaries annually established by the Act of Ukraine "On the State Budget" for an appropriate year. The minimum registered capital for a LLC is 100 minimum salaries and 1250 minimum salaries for a JSC.

The minimum income in Ukraine in 2009 is:

• as of January 1, 2009 - UAH 605.00;
• as of April 1, 2009 - UAH 625.00;
• as of July 1, 2009 - UAH 630.00;
• as of October 1, 2009 - UAH 650.00;
• as of December 1, 2009 - UAH669.00.

The legislation also establishes additional requirements as to the minimum registered capital amount for certain types of financial institutions. Registered capital of a life insurance company cannot be less than an equivalent of EUR 1,5 million. Registered capital of a non-life insurance company cannot be less than an equivalent of EUR 1million. The minimum registered capital amount for banking institutions is EUR 10 million.

To incorporate a company in Ukraine the following documents are required:

• 2 registration cards in the set form (Company Registration Application); 
• original or notarized copies of the Company Creation Resolution;
• 2 sets of constituent documents;
• registration fee receipt.
   

If a company's founders are non-resident (foreign) individuals or entities, the following additional documents are required:

• document confirming that the incorporation of the non-resident founder-company (excerpt from trade, bank or court register); or
• notarized and certified with an apostil translation of a passport for a non-resident (foreign) individual.

Foreign citizens who are planning to incorporate a company in Ukraine must also obtain the Ukrainian tax ID number.
 

Basically, the difference between the general and the single taxation systems is in the quantity of taxes to be paid and the rates. Single tax payers may choose either to pay single tax at the rate 10% or to pay single tax at the rate 6% + VAT at the rate 20%. 

To bacome a single tax payer a company must file an appropriate application to the local tax authority, otherwise it will automatically be obligated to pay taxes in accordance with the rules of the general taxation system (profit tax - 25%, VAT - 20%, etc.). In addition, to enjoy the single tax privilges a company must comply with the following requirements:

• an average annual quantity of employees cannot not exceed 50 persons;
• annual income from sale of goods (works or services) cannot exceed UAH 1 million.