Doing Business in Ukraine

Ukraine offers a growing business environment with a strategic location, skilled workforce, and improving regulatory framework. This guide provides an overview of the key steps and considerations for starting and running a business in Ukraine.

Business Environment

Ukraine has made significant progress in improving its business climate:

• Ease of Doing Business: Ranked 64th globally (World Bank, pre-2022)
• Company registration: Can be completed online within 24 hours
• Digital services: Diia portal for government services
• Foreign investment incentives: Available for priority sectors
• Free trade agreements: EU-Ukraine DCFTA, several other FTAs

Registration Procedure

Step 1: Choose Company Type

Select the appropriate business structure (LLC, JSC, representative office, etc.).

Step 2: Register with State Registrar

File registration documents online or through a notary. Required information includes:

• Company name (Ukrainian and optionally English)
• Registered address
• Founders and beneficiaries information
• Management structure
• Types of activities (KVED codes)

Step 3: Tax Registration

Automatic tax registration upon company registration. Choose tax regime (general or simplified).

Step 4: VAT Registration

Register for VAT if annual turnover exceeds UAH 1,000,000 or voluntarily.

Step 5: Open Bank Account

Open a corporate bank account with a Ukrainian bank.

Key Taxes for Businesses

• CIT: 18% standard, 0% for Diia City IT companies
• VAT: 20% standard (7% medical, 0% exports)
• SSC: 22% employer contribution
• Withholding taxes: Dividends 5/15%, interest 0/18%, royalties 15%

Labor Laws

• Minimum wage: Set by government, indexed periodically
• Work week: 40 hours standard
• Annual leave: Minimum 24 calendar days
• Sick leave: Paid by employer and social insurance fund
• Maternity leave: 126 days paid
• Employment contracts: Required in writing, Ukrainian language

Ongoing Compliance

• Financial statements: Annual filing with tax authorities
• Tax returns: Monthly/quarterly CIT, VAT, and SSC returns
• Audit requirements: Mandatory for certain company types
• Transfer pricing: Documentation for controlled transactions
• Beneficial ownership: Must be reported to the register