We provide comprehensive legal and consulting services for the registration of representative offices or branches in Ukraine. We draft all the primary documents and provide our clients with full assistance. It is easy to establish a representative office with us.
What do we do?
- consultation on process and procedure;
- drafting of all the required documents;
- provide office address (if needed);
- registration in the Ukrainian Register of legal entities;
- obtaining of branch registration number and certificate;
- registration in tax and social security authorities;
- bank account opening for representative office;
Ukrainian legislation on the representative office
Foreign companies with the aim of promoting products or services in Ukraine have the right to open a representative office in our country. Usually, branches are opened in order to encourage (less for the purpose of direct and indirect sales) goods and/or services of the parent company through conducting advertising campaigns, market research, monitoring of distribution, etc. In most cases, it is better to register a company for conducting economic and business activity. Non-profit or non-governmental organizations also have the right to establish a branch in Ukraine. Consider that a representative office is not a company (legal entity) under Ukrainian legislation. In case you intend to do business in Ukraine, you might need Ukrainian company formation.
Under Ukrainian law, branches & representative offices are established without constituting a separate legal entity. The state registrar of legal entities is the primary authority to process the application for registration of Ukraine’s representative office. Ukrainian Representative office can open a bank account (in local and foreign currency) and obtain a seal (emblem). The funds received from the parent company are fully exempt from income tax if it was properly used by the representative office (inc. salary, office rent payment, advertising campaign, market research, etc.).
The representative office has the right to pay the invoices (for required services and goods) of any company or individual. The director or CEO of the Ukrainian branch is acting under a power of attorney that is issued by the parent company. Also, consider that agreements and contracts concluded by the representative offices create rights and obligations for the parent company. So if your goal is to establish a body that will make sign agreements in Ukraine with local businesses, a representative office can be a good solution. Also, such companies can be established in order to make works or services (including construction, consulting, research, and others).
Ukraine representative office can be a good solution if there is a need to participate in certain investment or construction projects. For example, if your company has the need to make construction services or works, it can also be done through a Ukrainian representative office. Also, if you intend to hire employees in Ukraine (like engineers, programmers, etc), it can be done through a representative office. Moreover, it is a good solution for employing labor in Ukraine as, in such a case, all the employees of the representative office can be considered as employees of a foreign company. It is good in a case when it is necessary to disclose the official number of staff in all the jurisdictions.
The branch can be an employer and can hire both Ukrainian and foreign citizens. Consider that stuff can be sent to Ukraine from the parent company to work. Foreign employees who are sent by the parent company to work in the Ukrainian representative office do not have to obtain a work permit. Moreover, such workers can obtain a residence permit (for a period of 1 year) based on the employment contract. So, if a foreign company has a plan to bring foreign employees to work in Ukraine, a representative office is one of the best legal ways to do it correctly.
Registration of the representative office and obtaining a certificate of registration is one of the bases for opening a bank account. Certificate of registration enables a temporary duty and value-added tax (VAT) free import in Ukraine of property and equipment required for service use. Representatives or branches are allowed to assign contracts.
What documents are required for the registration of a representative office in Ukraine?
In order to be able to start the process of official registration of a representative office on the territory of Ukraine, the foreign company shall provide the following documents:
- extract from the trade (or banking or companies’) register of the country where the main body of managing foreign companies is officially registered;
- certificate from the bank, where the account (preferably the main one) of a foreign company is opened;
- power of attorney to perform representative functions in Ukraine, registered under the laws of the country where the foreign entity is officially registered;
- lease contract on office address in Ukraine;
Documents must be certified with apostille or officially legalized. The formation of a representative office in Ukraine is very similar to Ukrainian company formation, as it shall be processed through a similar registration procedure. The official government fee for the registration of a representative office in Ukraine – is less than $200.
Documents issued by the parent company from most developed countries do not require legalization. All the documents shall be translated into Ukrainian and certified by the notary in the country of origin.
(votes: 9, average: 4,00 из 5)
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