We provide comprehensive legal and consulting services for the registration of representative offices or branches in Ukraine. We draft all the main documents and provide our clients with full assistance. Initial consultation on taxes and the main regulations is always provided.
What do we do?
- consultation on process and procedure;
- translation of documents;
- drafting of all needed documents;
- provide office address (if needed);
- registration in Ministry of Economy of Ukraine;
- obtaining of branch registration number and certificate;
- registration in tax and social security authorities;
- seal (emblem) obtaining and banking account opening;
|needed time||30-45 days|
Ukrainian legislation on the representative office
Foreign companies on purpose to promote products or services in Ukraine have the right to open a representative office in our country. As a rule, branches are opened in order to promote (less for the purpose of direct and indirect sales) goods and/or services of the parent company, through advertising campaigns, market research, monitoring of distribution, etc. In most cases, it is better to register a company for conducting an economic and business activity. Non-profit or non-governmental organizations have the right to establish a branch in Ukraine. Consider that a representative office is not a company under Ukrainian legislation. In case if you intend to make business in Ukraine you might need Ukrainian company formation.
Under Ukrainian law, Branches & Representative offices are established without constituting a separate legal entity. Ministry of Economy of Ukraine is the main authority to conduct the registration of Ukraine’s representative office. Representatives may have a bank account (in local and foreign currency) and obtain a seal (emblem). The investment received from the main office is 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 invoice any type of company or individual. The director or CEO of the branch is acting under a power of attorney, issued by the parent company. Also, consider that agreements and contracts concluded by the representative offices do create rights and obligations for the parent companies. 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 the employees of a foreign company. It is good in a case when it is necessary to disclose the official number of stuff 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 which 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 the 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 representative office and obtaining a certificate of registration is one of the bases to open 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 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 company is officially registered;
- certificate from the financial institution, where the account (preferably the main one) of a foreign company is opened;
- power of attorney to perform representative functions 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 translated into the Ukrainian language. The formation of a representative office in Ukraine is a much more complicated process than Ukraine company registration as it shall be processed through the Ministry of Economy of Ukraine. The official government fee for the registration of representative office in Ukraine – $200.
Ukraine is a party to the Hague Convention Abolishing the Requirement of Legalization for Foreign Public Documents, so documents of the parent company from most developed countries do not require legalization. All the documents shall be translated into the Ukrainian language and shall be certified by the notary in the country of origin.