The choice of the organizational and legal form of the business entity impacts not only the initial stage of registration, but also the establishment of the business structure, the type of taxation, the regulation of conflicting financial situations with partners, the extent of managerial responsibility, liquidation procedure, etc.
If you are thinking about how to start your business in Ukraine from scratch and correctly, regardless of whether it is a medium-sized firm or a large company, S&P Agency will help you.
How to open a business in Ukraine
In order to start a business, as an entrepreneur you have to register with state bodies. First of all, determine in what organizational and legal format you want to work as a natural or legal person, as there are certain differences.
FLP is an individual working as an entrepreneur. This type of activity is usually chosen by those who provide services to the public or to other companies. At the same time, the planned income cannot exceed 5 million hryvnia per year.
LLC is a legal entity, an organization having one or more founders. LLC or Limited Liability Company choose entrepreneurs who plan to do business with large companies, work in foreign markets and attract investment.
No matter what form of activity you choose, you can register a business without the participation of the State Registrar. To do this, you need to apply online through the portal Dia, using a qualified electronic signature (CEP). You can also register FLP and LLC offline through government agencies. S&P Agency will help you to register the business with highly qualified lawyers.
What are the features of the Ukrainian market
The lack of domestic capital and the need to restructure enterprises, on the one hand, and the need to reduce the technological gap, on the other, are actualizing the question of attracting foreign investment for Ukraine.
Attracting long-term foreign investments, as well as intensifying activities to promote them throughout almost all the years of Ukraine’s independence, was one of the priorities of its economic policy, which was determined by a number of official documents. Unfortunately, however, the results are disappointing today, and large Western investors are wary of doing business in Ukraine.
It is undeniable that in Ukraine there are a number of investment attractive factors that contribute to the expansion of its investment ties: a large and virtually competitively unlimited domestic market with a lot of commodity positions; geographical location at the intersection of the main transport routes between Europe and Asia; relatively cheap and skilled labor; scientific potential; developed infrastructure (ports, bridges, airfields, warehouses, communication systems, water supply) and others.
However, according to one of the indicators reflecting the degree of integration of the country into the world economy, the development of its external economic relations and the desire to create an open, export-oriented model of economy – the accumulated volumes of foreign investment, Ukraine is far behind the vast majority of countries with transformative economies.
The global financial and economic crisis in 2008-2009 and the military aggression of the Russian Federation against Ukraine in 2014 significantly worsened investors’ expectations regarding further investment prospects and security of assets in the country and made their adjustments, resulting in a decrease in income inflow and even capital outflow in certain periods. Therefore, the emerging task is not only to actively attract new capital, but also maintain existing foreign investors in Ukraine.
What are the main risks for business?
- Talents. The company must take care of the health and safety of those employees whose lives have been directly affected by the hostilities. However, there are additional effects that affect well-being. For example, employees’ family or friends may be at risk. This may lead to reduced productivity and reduced access to IT talents located in war-affected regions of the country.
- Cybersecurity. The conflict caused an increase in the total number of cyberattacks, therefore, it is desirable to carry out corresponding checks more often. In addition, it is important tokeep under constant review the protocols of protection against attackers. For example, Gartner Research recently identified updated models of how ransomware began to operate, which itself called into question the effectiveness of previous cyber-defense strategies. In the case of ERM leaders, the issue of determining the value of their own assets and developing a response manual is of particular importance to them. If you do this in advance, you don’t have to repeat the same process in a hurry once the cyber-attack already started.
- Finances. As a result of the war, the prices of basic commodities will rise, thus fueling inflation. It is important for ERM managers during this period to coordinate with their colleagues all further actions related to the analysis of financial risks, as well as to prepare strategies that will help them to reduce the negative consequences of emerging threats.
- Supply chain. It is essential to ensure that the plan of action for suppliers is laid out and thought through in case of the emergence of an unpredictable situation. It is important to review and rethink all relevant supply risks. If there are dependencies on some suppliers, they need to be loosened. In the future, there is a risk of facing a shortage of important materials and increased costs, so it is better to think of alternative logistics options in advance.
Turnkey registration service (LLC) in Ukraine – fast, convenient, with a guarantee
Any kind of business, be it a company, LLC, FLP or PIF must be registered in the tax authority in Kyiv. There are so many existing tax schemes that anyone can get entangled in them. For example, if you want to open a PIF, you will be presented with several varieties depending on such factors as:
- Type of activity;
- Future financial turnover;
- Possible profitability;
- Number of employees hired;
- Nuances of work.
All documents required for registration must be filed within a certain time frame and in accordance with the procedure prescribed in the legislation. If there are inaccuracies or errors in the documents, you can get a refusal of registration. Therefore, it is better to contact our company for preparation of documents and other assistance in registration.
