Ukraine is a large Eastern European country with fertile lands, rare earth resources, access to the Black Sea, and a hardworking, highly educated population. Notably, Ukraine offers an extremely favorable tax system, unique in Europe, along with investment incentives and a relatively low cost of living. These factors have consistently attracted foreigners interested in Company Registration in Ukraine and exploring immigration opportunities in a country full of potential.
In Ukraine, businesses are frequently established in sectors such as IT, agribusiness, energy and renewables, logistics and transportation, trade, tourism, HoReCa, services, and other industries.
Advantages of Company Registration in Ukraine
Starting a company in Ukraine offers numerous benefits and opportunities for business development. Below are some key advantages, though this list is not exhaustive:
- Favorable tax system: In some cases, taxation can be reduced to 0%.
- Over 60 industrial parks with a 10-year tax exemption and various incentives.
- Special legal framework for IT companies under the Diia.City regime.
- In some cases, businesses can be registered and operated remotely through the uResidency program.
- Investment incentives for significant investors contributing at least €12 million.
- Business incentives for sectors such as agriculture, green energy, R&D, eco-transport production, IT, creative industries, infrastructure, and more.
- Opportunity to obtain permanent residence as an investor by investing at least $100,000.
- Option to obtain a temporary residence permit for business owners and their families.
Business Registration Forms in Ukraine
The available business registration forms in Ukraine are defined by the Law of Ukraine “On Business Associations,” the Civil Code, and the Law “On Limited and Additional Liability Companies.”
The most popular form is a Limited Liability Company (LLC), while the Private Entrepreneur (PE) model is also widely used. Although PE is not a legal entity, it allows individuals to engage in most types of business activities on par with companies.
Types of Business Entities in Ukraine
- Limited Liability Company (LLC): The most popular form of company registration. Its advantages include limited liability for members within their capital contributions, simple registration, easy management, and minimal capital requirements. There are no limits on the number of participants.
… - Additional Liability Company (ALC): Participants bear additional liability for the company’s obligations, defined either by the charter or proportionally to their shares. This form may be preferred for businesses requiring additional financial guarantees for creditors or investors.
… - General Partnership (GP): All participants bear unlimited joint liability for the company’s obligations with their personal assets. This form is similar to partnerships common in Anglo-Saxon legal systems, often used by lawyers, doctors, and other professionals.
… - Limited Partnership (LP): In this structure, at least one participant assumes full liability while others (limited partners) are only responsible for their contributions and do not participate in management. This form allows investors to fund the business without direct involvement.
… - Joint-Stock Company (JSC): Suitable for large-scale businesses requiring significant capital through share issuance. Minimum authorized capital is set at 1,250 minimum wages, which by 2025 amounts to over UAH 10 million (~$238,000 USD).
… - Private Entrepreneur (PE): Although not a company, this form of self-employment allows efficient business operations with simplified taxation and management. PE income is considered personal income, making funds accessible for immediate use. The PE annual income limit is UAH 9,336,000 (~$222,000 USD) as of 2025.
Taxation in Ukraine
Ukraine attracts entrepreneurs with its limitless opportunities and, not least, its favorable taxation. Although standard tax rates are relatively high, companies often have the opportunity to reduce their tax burden legally through proper business structuring and the use of legal mechanisms.
The corporate income tax rate is 18%. Using this rate, a business will face no restrictions on income or types of activities, aside from licensing requirements in certain cases.
Businesses, as well as individual entrepreneurs (FOPs), can apply the “single tax” regime. This special tax system simplifies taxation by replacing several taxes with just one. Companies and FOPs can use this regime. The single tax rate is 3% + VAT or 5% without VAT, calculated from the company’s total turnover rather than net profit. This type of taxation has an annual income limit of slightly over USD 222,000 and certain activity restrictions.
Special attention should be given to the unique legal framework known as Diia.City, which allows companies to adopt a model similar to Estonia’s. Under this system, companies are taxed only at the profit distribution stage, while undistributed profits are tax-free. Thus, the corporate income tax rate is 0%, and the tax on distributed capital is 9%. This regime can be used by IT companies that meet specific requirements. The conditions differ for new startups and existing businesses. Detailed information about Diia.City can be found here.
The VAT rate in Ukraine is 20%. There are also reduced rates: 14% for agricultural products and 7% for pharmaceuticals, medical devices, cultural event services, and more. A 0% rate applies to export operations.
The dividend tax rate is 5–15% for dividends paid abroad (subject to double taxation treaties) and 5% for dividends paid to Ukrainian residents.
Ukrainian residents are required to pay a military levy, which was increased from 1.5% to 5% as of January 2025. This levy is charged on salary payments, rewards under civil contracts, and dividend income. FOPs under the 3rd group pay a 1% military levy on their turnover.
Banking in Ukraine
Ukraine’s banking system is highly digitalized, surpassing many European systems in convenience and adaptability. The market is dominated by PrivatBank (~37% market share), followed by Oschadbank (17%) and Ukreximbank (5-6%). Some banks allow remote account opening, streamlining the onboarding process. Additionally, services such as Payoneer, Wise, and Revolut are available for international transactions.
Company Registration Process
There are multiple ways to register a company in Ukraine:
- Online registration: Ukrainian residents can register a company online using an electronic signature in just one day.
- uResidency registration: Currently available for citizens of India, Pakistan, Thailand, and Slovenia, this method allows fully remote registration after obtaining uResidency status at a Ukrainian consulate.
- Registration by power of attorney: The most common method for foreigners. We will prepare a power of attorney template for you to sign with a local notary, legalize it, and send it to Ukraine along with a certified copy of your passport. Based on these documents, we will first obtain your tax identification number, followed by company registration. This process typically takes 2-5 business days.
Required Documents:
- Passport for international travel
- Proof of residential address
- Completed application form (template provided)
- Power of attorney (template provided)
Personal documents should be submitted as color scans in JPEG or PDF format with high resolution.
Tax table
| Type of Tax | % |
|---|---|
| Corporate Income Tax | 18/5/0 |
| VAT | 20/14/7/0 |
| Dividend Tax | 5/5-15 |
| Interest Tax | 15 |
| Royalty Tax | 15 |
Price table
| Service | USD |
|---|---|
| Company registration | 300 |
| VAT payer registration | 100 |
| Single tax registration | 100 |
| Legal address for 1 year | 200 – 300 |
| Bank account opening | 150 |
| EMI account opening | 150 |
| Monthly accounting services | 150 |
Company Registration in Ukraine is your first step toward a successful business in a country with rich potential and favorable conditions. Entrust this process to us, and together we will create a reliable foundation for your success.
