Registration of a Non-Resident Entrepreneur in Ukraine

State Registration of a Foreign Entrepreneur

• To obtain a work permit it is necessary to pay the State fee – approximately 10400 UAH for 3 years. All charges are paid additionally.
• To extend the permit it is mandatory to pay all taxes and fees of the enterprise so that the permit can be continued;
• Within 90 days from the date of obtaining the permit it is necessary to conclude an agreement (Provide a certified copy to the Employment Center within 10 calendar days from the date of conclusion);
• From the moment of LLC registration it is necessary to provide information about the employed worker immediately after registration, usually the director;
• To renew the work permit and residence permit it is necessary to provide the original of the previous permit, but the service cost does not change;
• Staged payment of services is possible – LLC registration, obtaining a work permit, residence permit in thirds;
• To obtain a residence permit it is necessary to leave the territory of Ukraine (cross the border on another basis, visa D) (Procedure: entry into Ukraine, obtain a work permit, leave Ukraine, obtain a D visa, enter Ukraine, obtain the residence permit.);
• The minimum monthly maintenance of an LLC costs at least 5000 UAH per month (taxes, fees, salary, accountant, submission of reports);
• For processing a D visa in 5 working days, the client pays the embassy service fee; in case of refusal to issue the visa – the paid fee is non-refundable;
• The consular fee is always paid: both for the standard term and expedited. For expedited processing a double fee is charged.

The Constitution of Ukraine establishes that foreigners who stay in our country on legal grounds have rights and obligations fully identical to the rights and obligations of Ukrainian citizens. Consequently, a foreign citizen can quite engage in entrepreneurial activity on the territory of Ukraine, albeit with some restrictions. We will consider those in more detail.

All matters related to the registration of entrepreneurs are regulated by the Law “On state registration of individuals-entrepreneurs and legal entities.” This legal act does not prescribe any separate procedure for the registration of a non-resident individual.

Although the registration (propiska) institution has been abolished, the law obliges foreigners to register at their place of residence within 10 days. For a non-resident to be able to register as an individual entrepreneur (IE), he must submit a certain package of documents to the state registrar at his place of residence. A foreigner can confirm his place of residence at a specific address only if his passport document is registered with the Department for Immigration, Citizenship and Registration. Only after this procedure and after the expiration of a six-month period can the foreigner register as a non-resident entrepreneur.

But even after determining the foreigner’s permanent place of residence, he still needs to decide on the organizational and legal form of his enterprise. The best and simplest form of entrepreneurial activity is FOP (sole proprietor). The main advantage of an FOP over a legal entity is that an individual entrepreneur can choose a simplified taxation system. In addition, the procedure for registering an individual entrepreneur is significantly simpler than registering a private enterprise.

Documents Required for a Foreigner to Register as an Entrepreneur

In accordance with Article 18 of Law No. 755, all documents for the registration of an individual for private entrepreneurial activity must be submitted in the state language with an inventory. One copy of the inventory, with a list of documents, is issued to the applicant against signature with a date of receipt. The inventory must include:

• The passport document of the foreigner or an identity document of a stateless person.
• The taxpayer identification number (TIN) of the foreign citizen in Ukraine, obtained in advance.
• An application for choosing the simplified taxation system or an application for voluntary VAT payer registration.
• A certificate of no unserved convictions (no criminal record).

If a foreigner wishes to be the owner of an enterprise but does not plan to carry out labor activity in Ukraine personally, it becomes necessary to obtain a work permit. Such a document can be obtained at the Regional State Employment Service. Consideration of such applications takes place every 15 days. The permit is issued one week after the commission meeting.

Registration Services

Our law firm provides services for the registration and liquidation of various business entities (private enterprises, LLCs, FOPs), representative offices, branches, joint-stock companies, firms, etc. Our services also include registration of business entities for foreigners, assistance in obtaining Ukrainian citizenship or a residence permit, work permits, confirmation of citizenship and other types of services.