Ukraine Company Registration
SaberWP has hired Ukrainian developers for nearly 15-years since previous versions of the company such as GoldHat Group and CustomNet Development. In our latest iteration as an agency our initial plan was to register the business in Costa Rica. Instead we have chosen a Ukraine company registration instead. Costa Rica was a sound choice from a tax perspective given the 0% corporate tax rate and the very generous 0% territorial taxation on foreign residents and company executives. However, as we write about recently in a Facebook post, some things are far more important than tax rates. By registering as a Ukrainian company we’re able to help fund the rebuilding of Ukraine as well as provide other contributions to the ongoing war effort.
Corporate Tax for Ukraine Company Registration
After completing a Ukraine company registration, the registered business SaberWP is liable to pay 18% corporate taxes to the government of Ukraine. This is of course calculated from profits. In addition to Ukrainian company registration, we have started an initiative to further fund Ukraine’s war effort through a 2.5% charitable contribution from gross revenues.
That is a 2.5% flat calculated amount off the top of every dollar in sales. We are very proud to be able to tell our customers throughout Europe and the US, that by hiring SaberWP a small portion of the proceeds will go to providing life-saving medical supplies, defense equipment and funds to pay for the extensive rebuilding efforts many of which, are already underway in numerous Ukrainian cities.
Why Invest in the Ukraine?
We believe strongly that the Ukrainian war is a war by authoritarians against the democratic and free world. It is not a Ukrainian war. It is a European war, and it is an assault on all of us. Be a part of fighting back today by supporting businesses that are contributing to the Ukrainian war effort. There are thousands of companies continuing to operate in the Ukraine despite the ongoing war. These include many firms that provide valuable tech sector services ranging from programming and development to UI design, as well as other business services in the marketing and business development sectors.
Ukrainian’s are known and respected around the world for the quality of their technical work. To illustrate this one of the leading WordPress plugin makers is Crocoblock’s, an outstanding company from Kyiv that has been making Elementor extensions and Gutenberg blocks with such popular plugins as JetEngine. Our own work with ACF Engine was largely inspired by the Crocoblock’s JetEngine product.
Ukrainian Company Registration
At the current moment foreigners to the Ukraine have a variety of options for company registration in the Ukraine. This includes purchasing an “off the shelf” company that is already registered and setup. There are many law firms and other services providers in the start-up space who can provide these off-shelf companies for immediate use. For many the traditional approach to registering a new company is a reasonably streamlined approach that just requires the assistance of a qualified Ukrainian based legal team.
The process is similar to company registration found in most European company, with fairly minimal red tape and the ability to expedite the registration if required. It is typically possible to register a new company in a week or less in the Ukraine. The speed of it’s corporate registry handling has been improved regularly over the past decade and continues to improve even during the war.
Ukrainian Company Formation Options
There are two main options when registering a new Ukrainian company. The first is the LLC or Limited Liability Company. This is usually the most suitable choice for the majority of start-ups. There is a second choice which is the JSC (Joint Stock Company). This option is not as common but may be considered in certain situations where it offers some advantages. Most legal services in the Ukraine can advise about which option is most suitable for your particular goals and how your company will operate.
Where to Locate in Ukraine
Unfortunately due to the ongoing war it is of course a concern to open a location in Ukraine at this time and the choice of location has to consider safety and security as paramount. The Lviv region, because of it’s relative distance from the fighting and from the front-lines is generally considered the safest option at this time. That is where SaberWP decided to formalize it’s company registration. We might consider at some point in the future transitioning or adding an office in Kyiv. For now we chose to do our Ukraine company registration for Lviv, although the registration really allows operating the business from anywhere in the Ukraine.
How to do a Ukraine Company Registration
The first step in establishing a company in the Ukraine and the first step to a Ukraine company registration process is to make contact with a law firm licensed to operate in the Ukraine. We certainly recommend choosing a Ukrainian based law firm, rather than using a foreign operating registration company.
You’ll many find many online companies that specialize in company registration. For them a Ukraine company registration is just another country, just another set of steps in a fairly similar process that do in every different jurisdiction. The problem with this is that they do not have specific knowledge of the unique environment in the Ukraine. And given the frequent changes to the law and to the process, and the general situation that is unique right in the Ukraine, to us it makes sense to rely on a local law firm that has their fingers on the pulse of what is going on.
Having somebody on the ground also makes it possible to provide a POA (Power of Attorney) that the law firm you hire can use to do additional steps in addition to the Ukraine company registration. These steps might include opening a company bank account, or filing for tax registrations for the principle operator and their assigned executives. Local Ukrainian law firms can also often provide a second or third named executive on the registration forms if that is something required by the type of registration being conducted.
After doing some online research we found Eternity Law Group based in Kiev and sent them an initial inquiry about opening a business in the Ukraine. They were very helpful and prompt, giving us a set of options and initial pricing within 24-hours. They also specified that if we were not able to visit the Ukraine during the registration they would need a POA (Power of Attorney) which is pretty standard practice when doing registrations like this across different jurisdictions. We then followed up to ask if they could provide a referral to an account for the newly created business, and also inquired if the Ukraine company registration package they were offering could include the opening of a bank account for the newly formed company. The representative of the law firm, Bogdan, was very helpful and gave us a really positive experience through every step of the process.
Ukraine Company Registration Cost
The total cost of the services for the Ukrainian company registration that we chose was around 1,100 Euros. That’s fairly consistent with what we’ve seen advertised and what we’ve paid in other countries so overall we can say that registering a new Ukrainian company is not cost prohibitive by any means.
If you wish to make a contribution to a registered charity operating in the Ukraine we recommend UNITED24, an initiative of the President of Ukraine and the official fundraising platform of Ukraine. https://u24.gov.ua/
When you donate at UNITED24 you’ll be given the option between 3 funding directions for your funds to be used including Defense/Demining, Medical Supplies or Rebuilding Ukraine.
