Each company has mandatory conditions for registration.
Most companies registered by foreign citizens in Ukraine are limited liability companies.
The abbreviated name is LLC.
Why register an LLC?
In this type of legal entity, the company and the founders are liable to third parties within the authorized capital of the company.
In other types of legal entities, the founders are jointly and severally liable with their personal property with the company to third parties.
Let’s take a look at the main attributes for registering a company.
1. Founders of a legal entity
The founders of the company in Ukraine can be individuals and legal entities.
The founder can be 1 person, there can be 20. There can be 2 Ukrainian or foreign companies and 6 people as founders at the same time. That is, there are no strict restrictions in this paragraph.
After the registration of the company, the founders and all subsequent owners are called – Members of the company.
Founders – those who registered and became a member, and after registration.
A member is someone who owns a share of a company.
Participants have several functions in the life of the company, which are formalized in the form of a decision by collecting participants in a limited liability company:
– appointment of a new director;
– change in the authorized capital, its increase or decrease;
– change of activities of the company;
– decision-making on payment of dividends;
– decision to liquidate the company.
Members do not employ staff. Do not take part in the life of the company.
It should be borne in mind that any decisions that are subject to the competence of the Participants, for example, the dismissal of a director and the appointment of a new one, are carried out by gathering all the owners of the company.
2. Authorized capital
The authorized capital is indicated by the founders when registering the company.
The authorized capital of the company may be specified during registration: money, property or money and property at the same time.
When registering a company, you can specify any authorized capital with which your company will be responsible to other companies.
You can specify 1000 UAH, you can specify $1,000,000, but they must be deposited into the company’s account within 6 months after registration.
You can specify a phone of a certain cost and you will need to buy it. It will be the property of the company.
3. Legal address
All companies in Ukraine have a legal address.
That is the place where the company is located.
If this is an online publication, or an online platform, such companies must also have a legal address.
As a rule, this is the address of the office or commercial property where the company is located.
If there is no such address, you can use the lease of the virtual address of the premises.
4. Types of economic activity of the company
Each company, when registering, indicates the types of economic activity that the enterprise will be engaged in.
The classifier of types of economic activity is taken from the classifier and has its own specific code for each type of activity.
To change the Classifier of types of economic activity of the company, it is necessary to gather the Participants of the company and make a decision to change the types of economic activity of the enterprise.
5. Enterprise Director
Every company must have a director.
When registering a company in Ukraine, a foreign citizen can be indicated as the director of the enterprise only in cases where he has: a permanent residence permit in Ukraine or refugee status.
In other cases, he needs to hire a citizen of Ukraine or a foreign citizen who has a permanent residence permit or refugee status in Ukraine for the position of director.
After registration of the company, one of the Participants can take the position of director, after obtaining a work permit in Ukraine.
6. Ownership structure
An annual report in the form of a schematic representation of the founders, members and other people who have a direct impact on the company.
7. Company name
Each company must have a unique name.
If you have selected a name and it is already taken, you will not be able to register a company with exactly the same name. You must choose a different name.
The company name can have a full and abbreviated name if desired.
8. Company charter
The company charter is a description of the company, like a summary of a person.
The charter contains all of the above:
- Name of the company,
- How does the company work
- What the company does,
- Who owns the company,
- What is the percent of profit distribution,
- Where is the company located
In this article, I will not describe what applications need to be filled out and how to submit documents to a state registrar or notary.
This work should be done by lawyers to minimize your risks when registering a company in Ukraine.
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