Registration of an LLC with foreign participation. Opening a company by a foreign citizen

Enterprise registration services with foreign investments

Since in the current legislation of Ukraine the form of ownership known as «enterprise with foreign capital» is no longer used, non-residents most often establish a limited liability company to conduct business activities. This form offers a number of advantages, allows Ukrainian partners to be admitted as founders on an equal footing with non-residents, and implies full control of the company’s activities by the foreign founders.

Registration of an LLC with foreign investments involves a number of specifics, for example the formation of the statutory capital. It should be noted that foreign investments are subject to registration in order to protect them at the state level. Foreign founders may make a contribution to the statutory capital only in a first-category currency, which includes US dollars and euros. Making a contribution in the national currency is possible only in the form of proceeds from the sale of foreign currency from a special account of the foreign investor opened in advance. A contribution in cash to the statutory capital is also not permitted.

Documents for registering an enterprise by a foreigner

State registration of business entities in Ukraine is regulated by Law No. 755-IV of May 15, 2003. Founders of enterprises may be natural and legal persons, including non-residents. The Law establishes equality of rights for foreigners and citizens of the country: neither the size of the statutory capital contributed by foreign investments nor the number of founders is limited.

To carry out LLC registration the applicant submits the prescribed list of documents personally or through an authorized representative.

Required documents for registering an enterprise with a foreign founder:

• application for registration of a legal entity;
• founders’ decisions on the creation of the enterprise – original or notarized copy;
• company charter;
• information about the governing body – details of the head and authorized representatives (position, full name, taxpayer identification number (TIN), date of birth, postal address);
• receipt for payment of the administrative fee.

Lawyers of the Nakaz company will prepare the entire package of documents: minutes of the founders’ meeting, the charter, and the approved forms for state registration. The founder will only need to provide the main documents and indicate the types of activities the company plans to carry out.

According to the law, documents must be completed in Ukrainian. Specialists of the law firm will ensure the correct drafting of the founding documents and the completion of forms, and, if necessary, will perform apostille and legalization.

Required documents if the foreigner is an individual

From foreign individuals acting as founders, the following will be required:

• a copy of the passport – a notarized translation into Ukrainian must be attached to the document;
• a copy of the identification number obtained in Ukraine;
• a notarized power of attorney – for carrying out the legal entity registration procedure without the personal presence of the founder.

Required documents for legal entities

If the founder is a foreign company, the following are required:

• a copy of the non-resident legal entity’s charter – translated and notarized;
• certificate of registration of the foreign company;
• confirmation of the legal address of the non-resident organization;
• copies of identity documents of the director, chief accountant, and authorized persons;
• a notarial power of attorney to sign documents for registering the enterprise.

Timeframes and cost

The Nakaz law firm will process the formation of an LLC within the agreed timeframes. LLC registration is carried out within 5 days. The duration depends on the readiness of the necessary documents. Expedited registration of a legal entity is possible.

The cost of the service for opening an LLC with foreign investments is provided above. The price includes: document preparation, payment of state fees, preparation of powers of attorney, registration with the fiscal authorities, the statistics office, social insurance funds, opening a settlement account in a bank, and manufacture of the company seal.

Notarized translation and certification of documents are paid separately. Additionally, provision of a legal address and consultation on choosing the tax system, coordination of activity codes according to KVED are possible.

Peculiarities of the procedure for opening enterprises by non-residents

An advantage of registering an LLC in Ukraine for founders from other countries is the possibility of obtaining a permanent residence permit. The right is granted to foreigners who contribute at least 100,000 US dollars to the company’s statutory capital.

The head of a company with foreign participants may be either a citizen of Ukraine or a non-resident. However, a foreigner must obtain a work permit in Ukraine. It is not possible to obtain it simultaneously with the registration of the legal entity. First, the organization should be created, a citizen of Ukraine appointed as director, a work permit for the foreigner obtained, and only then change the head to the foreign national.

Enterprises with foreign founders operate under the same tax systems as Ukrainian ones. The legislation does not provide tax benefits for such legal entities. Organizations may apply the general taxation system, paying corporate income tax and value added tax, or the simplified system – a single tax. The simplified tax system entails certain restrictions on types of activities.

Registration services

Registration of an enterprise with foreign investments includes the following actions:

• preparation of founding documents and their notarization;
• formation of the statutory capital;
• submission of documents for registration to the state administration;
• submission of documents for registration to the statistics office;
• submission of documents for registration with the tax inspectorate, the pension and other funds;
• opening an account in a bank;
• manufacture of the company seal.

All of the above actions can be carried out by our company. We can also provide a legal address and help choose the most suitable taxation system.

Contact us; we will provide consultations on all your questions and help register the enterprise.