Ukraine

Operating a Business in Ukraine

Setting up a company | Working conditions | Cost of labor | Social partners

Setting up a company

Legal business entities

Types of companies and capital (max/min)	Number of partners/shareholders and liability	Registration fees
Private Limited Company The minimum authorized capital required to set up a Private Limited Company is 100 times the minimum monthly wage, i.e. approximately 4 100 USD today.	Minimum 2 For certain important decisions, a majority of more than 50% of the votes is required, for example for the expulsion of a partner. However, all other decisions are adopted by simple majority.	Authentication of the company's premises (if necessary): UAH 350. Open a bank account for initial capital: UAH 0-100. Register at the Registration Office: UAH 170. Register at the State Statistics Committee: UAH 25.94. Register VAT at the State Tax Authority and obtain a VAT number: UAH 17. Approval of Ministry of Internal Affairs to prepare a company seal: UAH 81. Prepare a seal: UAH 60-180.
Public Limited Company 1 250 times the minimum monthly wage (which is the equivalent today of about 51 000 USD).	Minimum 2 The vote takes place according to the principle of "one share, one vote". For certain important decisions (for example the modification of the company articles), the agreement of three quarters of the shareholders is necessary. For less important decisions, a simple majority is enough.	Authentication of the company's premises (if necessary): UAH 350. Open a bank account for initial capital: UAH 0-100. Register at the Registration Office: UAH 170. Register at the State Statistics Committee: UAH 25.94. Register VAT at the State Tax Authority and obtain a VAT number: UAH 17. Approval of Ministry of Internal Affairs to prepare a company seal: UAH 81. Prepare a seal: UAH 60-180.

Business setup procedures: A new business, with foreign participation, has to be registered with the administration of the district where its headquarters will be set up.
Besides documents concerning the company setting up, for registration purposes, the foreign partner must provide a whole list of documents and notably a registration certificate certificate, a Ukrainian bank's certificate garanteeing that the company can honor its commitments. These documents must be authenticated by a notary, legalized by the Ministry of Foreign Affairs, and the Consulate of Ukraine, all in the country of origin of the company setting up, and translated into Ukrainian.
The time for legal registration is currently 5 working days after the sending in of the whole file. The foreign investment itself must be registered within 3 working days of the contribution deposit.

Working conditions

Legal weekly duration: 44 hours for services and trade and 48 hours for industry.
Retirement age: 55 for women and 60 for men.
Working contracts: Employment contracts are regulated by law, collective agreements and individual negotiations.

Cost of labor

Minimum wage: 669 UAH (84 USD)
Average wage: Average monthly gross earnings in Ukraine is UAH 2,083 (USD 268).
Social contributions: Social security contributions paid by employers: 47.5 %.
Social security contributions paid by employees: 1.5 %.

Social partners

Social dialogue and involvement of social partners: The Federation of Ukrainian Trade Unions (10 million members) brings together the country's 24 regions. The Federation consists of 44 unions and 26 national associations.
Unions: Ukrainian Trade Union Federation
List of Ukrainian trade unions
Labor regulation bodies: Ministry of Labor and Social Policy