At our firm, we understand that setting up a charitable organization in Ukraine can be a complex and time-consuming process. That’s why we provide comprehensive legal and consulting services to make the process as easy and fast as possible. Our team of experienced professionals has a deep understanding of the legal and regulatory landscape governing charitable organizations in Ukraine. We use this expertise to guide our clients through every step of the registration and formation process.
Whether you are just starting to explore the possibility of setting up a charitable organization in Ukraine or you are already in the process of doing so, we are here to help. Our services include everything from initial consultations to help you understand the legal requirements and options available to you, to complete support for the entire registration and formation process. We work closely with our clients to develop tailored solutions that meet their specific needs and objectives, ensuring that their charitable organizations are set up in the most effective and efficient manner possible.
By working with us, you can rest assured that your charitable organization will be set up in full compliance with Ukrainian law and regulations and that you will be well-equipped to pursue your charitable mission with confidence. We are dedicated to making the process of setting up a charitable organization in Ukraine as easy and stress-free as possible, and we look forward to helping you achieve your charitable goals. Contact us today to learn more about our services and how we can help you set up a successful charitable organization in Ukraine.
What do we do?
- consultation on the process and procedure of Ukrainian charitable organization registration;
- advisory on risks and important aspects of charitable activity in Ukraine;
- drafting needed documents for charitable organization formation (inc. statute or charter of organization, minutes);
- charity registration in state authorities;
- seal (emblem) and bank account obtaining;
- obtainment of non-profit status in Ukrainian tax authorities;
- tax consulting on charitable activity in Ukraine;
- legalization and registration of international or foreign charitable organization activity in Ukraine (if needed);
- mediation and dispute resolution (if needed);
Ukrainian legislation on charitable organizations
A charitable or philanthropic organization is a non-profit (NPO) private law legal entity whose constituent documents define charitable activity in one or several spheres as the main goal of its activity. Individuals and legal entities, except for public authorities and local governments, can be the founders of charitable organizations. Founders of charitable organizations make a decision on the establishment of charitable organizations, approve their constituent documents and the approval of bodies, and make other decisions related to the formation and state registration of charitable organizations. Consider that In Ukraine, charity funds are different from Ukrainian non-governmental organizations. Although at the same time, both are considered non-profit organizations.
To register a charity organization, founders shall choose the type of charitable organization (mentioned below) and approve the constituent legal document, called the statute or charter of the organization in Ukraine. The Charter is approved on the basis of a protocol (so-called minutes of a general meeting). Basically charter must contain the main charitable activity of a Ukrainian charitable organization and the field where the activity will be conducted. Also, this document shall have the procedure of dissolution of Ukrainian charitable organizations.
If you’re considering setting up a charitable organization in Ukraine, it’s important to be aware of the legal and regulatory landscape governing charitable activity in the country. The Civil Code of Ukraine and the Law of Ukraine “On Charitable Activities and Charitable Organizations” are the primary pieces of legislation that regulate charitable activity in Ukraine and outline the procedures for establishing a charitable organization.
Under these laws, charitable organizations are required to register with the appropriate government authorities and comply with a range of legal and regulatory requirements. These requirements include defining the charitable mission and objectives of the organization, establishing a legal structure for the organization, and meeting specific financial reporting and accountability standards. Failure to comply with these requirements can result in fines or other penalties and may limit the ability of the organization to operate effectively.
Types of charitable organizations in Ukraine
By Ukrainian law, there are three forms of charitable organization:
- charitable society (a charitable organization created by at least two founders and operates on the basis of the charter or statute);
- the charitable institution (is a kind of charitable trust; that acts on the basis of the constituent or founding act; a charitable organization whose founding act defines assets that one or several founders transfer to achieve the goals of charitable activity from such assets and/or income from such assets. A constituent act of a charitable institution may be contained in a will or testament. The founder or founders of the charitable institution do not participate in the management of such a charitable organization);
- charitable fund or charitable foundation (is a charitable organization that operates on the basis of the charter; has participants or members and is managed by them; participants or members are not obliged to transfer any assets to the such organization in order to achieve the goals of charitable activity; charitable foundation can be created by one or several founders. Charitable fund assets can be formed by participants and/or other benefactors).
Charitable societies and charitable foundations may have (besides founders) other participants who have joined them in the way prescribed by the charters of such charitable associations or charitable foundations.
Taxation of charities in Ukraine
By Ukrainian law, charitable organization, naturally, is exempt from taxation by VAT, income, and corporate tax. All funds received by a charitable organization for charity purposes are exempt from taxation. But it requires obtaining a status of a non-profit at the tax authority. The Ministry of justice is the main registration authority during the formation of a charitable organization in Ukraine. Also, consider that it is necessary to pay payroll (or so-called employment) taxes, fees, and payments to social security. One more important moment is that funds, property, or assets of a philanthropic organization can not be distributed between the owners or members of such an organization. It is restricted even during (or after) the dissolution of such an organization. All assets or property during a liquidation procedure can be transferred only to other charities of the same type and/or to the state budget of Ukraine. It was made with the aim of avoiding cases when a charity entity is used for tax optimization or some other illegal schemes.
Non-Ukrainian citizens (individuals) and legal entities (corporations, companies, non-governmental organizations) can be founders and members (or participants) of philanthropic organizations in Ukraine. Legalization is needed for International charitable funds to make activities in Ukraine.
We hope this information was helpful for you, and we hope that a charitable activity will bring you (in case you will make it) a lot of joy and will be successful.
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