10 reasons to open an LLC in Ukraine: how to reduce costs and increase the efficiency of your business

Jurisdictions have traditionally competed to become a location for businesses based on both domestic and foreign capital. Ukraine is one of the jurisdictions that differ favorably in terms of doing business. Opening your own limited liability company (LLC) in Ukraine can be beneficial for the following reasons:

1. Low registration costs. The cost of registering an LLC in Ukraine is relatively low compared to many other countries, the cost of turnkey registration is approximately 350 euros and takes two days to prepare the documents and a day for the registration itself. Costs may increase unless the founder is a foreign legal entity that does not have apostilled/legalized documents, or the founder-individual cannot come to the notary on his own and needs to issue a power of attorney.

2. Low maintenance costs : Annual company maintenance costs, including accounting and legal services, are much more affordable. There are many qualified English-speaking specialists. This makes Ukraine an attractive jurisdiction for entrepreneurs seeking to reduce start-up costs and ongoing operating costs while maintaining high business efficiency.

3. Tax optimization : the LLC can choose various forms of taxation, including a simplified taxation system and pay a tax of only 5% of the turnover, which is beneficial for the service sector, online education, etc., and allows you to minimize the tax burden. For LLCs on the general system, there is a significant list of allowed expenses.

4. Limited liability : The founders of the LLC are liable for the company's obligations only to the extent of their contribution to the authorized capital. This allows you to protect the personal property of entrepreneurs. This organizational and legal form is well known to everyone.

5. A wide list of types of activities : For many types of activities, a separate license is not required. And even if your type of activity requires a license, the conditions for obtaining it have already become simple and transparent.

6. Flexibility of management : Ukrainian legislation allows flexible management of corporate rights, determining the level of rights of company directors, etc

7. Business expansion : Official registration of an LLC gives the opportunity to enter into contracts, participate in tenders, receive loans, open bank accounts, and work legally both in the domestic and foreign markets.

8. Excellent banking service . Easy and fast account opening, excellent online banking, easy and clear account management. The only essential requirement is compliance with the rules of currency control (in simple words, this means that in the case of prepayment abroad, the goods must enter Ukraine within 90 days; in the case of export of the goods abroad, the buyer must pay for the goods within 90 days).

9. Prestige and trust : Despite the state of war, business conditions in Ukraine are stable (with the exception of areas of active hostilities)

10. An available asset is labor. In Ukraine, there are many free niches for doing business and significant growth potential. There is cheap skilled labor and it is easy to attract foreign workers.