We provide comprehensive legal and consulting services for Representative office or branch registration in Ukraine.
What we do?
- consultation on process and procedure;
- translation of documents;
- preparation of all needed documents;
- provide office address (if needed);
- registration in Ministry of Economy of Ukraine;
- obtaining of registration number;
- registration in tax and social security authorities;
- seal (emblem) obtaining and banking account opening;
Ukrainian legislation on representative office
Foreign companies on purpose to promote products or services in Ukraine, have the right to open a representative office in Ukraine. As a rule, branches are opened in order to promote (less for the purpose of direct and indirect sales) of goods and/or services of the parent company, through advertising campaigns, market research, monitoring of distribution, etc. It is recommended to register a company for conducting an economic and business activity. Non-profit or non-governmental organizations has the right to establish branch in Ukraine.
Under Ukrainian law, Branches & Representative offices are established without constituting a separate legal entity. Ministry of Economy of Ukraine is the main authority to register representatives. Representatives may have a bank account (in local and foreign currency) and obtain a seal (emblem). Financing received from main office, is fully exempt from income tax if it was properly used by Representative office (inc. salary, office rent payment, advertising campaign, market research, etc). Representative office has no right to invoice any type of companies or individuals. Director or CEO of the branch act under a power of attorney, issued by parent company. Also consider that agreements and contracts concluded by representative office do create rights and obligations for parent company. So if your goal is to establish a body that will make sign an agreements in Ukraine with local businesses, representative office can be a solution.
Branch can be an employer and can hire both Ukrainian and foreign citizens. Consider that stuff can be sent to Ukraine from parent company to work.
Registration of representative office and obtaining a certificate of registration is the basis 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.
Requirements for registration of branch in Ukraine
- extract from the trade (banking) register of the country where main body of managing foreign company is officially registered;
- certificate from the financial institution, where the account (preferably the main one) of foreign company is opened;
- power of attorney to perform representative functions Ukraine, registered under the laws of the country where official registered foreign entity;
- lease contract on office address in Ukraine;
Documents must be translated into Ukrainian language. Formation of representative office in Ukraine is much more complicated process than company formation. State fee for the registration of Representative office – $2500.
Ukraine is a party to Hague Convention Abolishing the Requirement of Legalization for Foreign Public Documents, so documents of parent company from most developed countries does not require legalization. All the documents shall be translated in Ukrainian language.