Full legal services in Ukraine

 Call us 

+38 (044) 221-12-14

+38 (068) 855-52-62

+38 (063) 101-81-83




Protecting your business in Ukraine
A team of professionals
Legal services
We work for international business

Doing business in Ukraine in 2019

« Back

Doing business in Ukraine in 2019 04.05.2019 21:42

Doing business in Ukraine has some specificity and has significant difference from doing business in other countries. Following the recent reforms, Ukraine is insensibly becoming an attractive place to do business and invest for the foreign business community.

In the ranking of Forbes magazine "The best countries for business in the world", issued in 2019, Ukraine has risen in three positions and now has a 77th place, compared to the previous 2018 year. To compile this rating, the business conditions are assessed according to 15 criteria, including tax climate, freedom of trade, protection of property rights and investments, corruption, monetary policy, technology development, and bureaucratic barriers to business, etc.

Ukraine took the 71st place in the Doing Business 2019 rating from the World Bank. Ukraine has improved its results and has risen by five positions in a year. Analysts evaluated how quickly you can open your own business: cost, time, number of documents, the ability to receive electricity and build infrastructure.


Types of legal entities

The two most popular types of companies in Ukraine are limited liability companies (LLCs) and joint-stock companies (JSCs). JSCs are divided into public and private. The major difference between them that a public JSC may offer its shares either through public or private offering while a private JSC can allocate its shares only through a private offering.

Also in Ukraine there are other types of companies: additional liability companies, full liability companies and differentiated liability companies. However, in practice these types are rarely used.


Registration of a Ukrainian company (Limited Liability Company (LLC)

The most popular business structure for small and middle business in Ukraine is Limited Liability Company (LLC).

Citizens of Ukraine, foreigners, Ukrainian and foreign legal entities can incorporate the LLC and they can be 100% shareholders of the LLC.

It is important that the director of a LLC can be only a citizen of Ukraine or foreign individual who has work permission in Ukraine.

It is necessary to have a local registered address for registration of Ukrainian LLC.

When all the required documents are ready, incorporation of Limited Liability Company can be finished and all primary registration documents will be collected in 5-7 working days.



Legal entities can independently choose a system of taxation, accounting and reporting, but tax rates in Ukraine depends on the type of tax payer and the entities’ profit.

The current legislation of Ukraine provides two types of systems of taxation, accounting and reporting: the general system of taxation, accounting, and reporting, and the simplified system of taxation, accounting, and reporting. Any legal entity can use the general or simplified system of taxation, accounting, and reporting. 

The main aspects that influence the amount of tax liability of legal entities that have chosen the general system of taxation, accounting, and reporting are listed below:

  • the connection between the revenue and the costs;
  • the amount of revenue that is not included in the gross revenue and the amount of costs that cannot be attributed to production outgo;
  • the amount of expenses subject to amortization;
  • the amount of the VAT included in the value of goods, works, and services; and the amount of the tax credit.

By applying the simplified system of taxation, accounting, and reporting, legal entity must pay the tax in the specific amount,  that depends on the type of simplified tax system. The feature in this case is that provision is made for certain restrictions depending on the type of simplified tax system, namely based on the kind and the place of business, the amount of the earned income, and the number of stuff.  



In Ukraine, a company can employ people under employment contract (it means as a salaried employee) or under civil services agreement (it means as a freelancer, provided the person being hired is registered as a Private Entrepreneur).

The unified social security contribution that are companies obliged to pay for their salaried employees is equal to 22% of the amount of employee’s salary. Also the employee has to pay 1,5% of military fee and 18% tax on personal income from his salary.

Over the last several years, Ukraine has significantly improved its business incorporation and registration procedures, making them easier and more transparent. So, in spite of some difficulties in the country, doing business in Ukraine is simply and profitable.