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Forms of business entities

Before registering a business, you need to decide on its legal form, then correctly prepare and submit the documents on time. We will tell about popular forms of business entities in Ukraine, associated problems and our service package for business registration.
Sole proprietor (individual entrepreneur). The most popular option for small business. The owner is the entrepreneur themselves.

Advantages

  • Quick and easy to register
  • Cheap
  • Simple reporting and minimum paperwork

Disadvantages

  • You can do business only on your own
  • The owner bears responsibility with all of their property
  • It has less credibility for partners than LLC or PE

LLC (Limited Liability Company). The optimal form of ownership that we usually recommend.

Advantages

  • The most legally regulated form of ownership
  • The authorized capital is unlimited, and can even be 1 UAH.
  • Participants bear responsibility only depending on their share.
  • You can use a model charter approved by the The Cabinet of Ministers.
  • It has more credibility for partners.

Disadvantages

  • The model charter does not take into account all the details, so it can become a subject of dispute between the shareholders
  • Registration is more expensive and complicated compared to individual entrepreneurs
  • The reporting system is more complicated than that of individual entrepreneurs

PE (private enterprise). This form of ownership is very similar to LLC, with one exception: it has almost no legislative basis. This is both good and bad. It is good because you can include almost anything into the charter which makes it easier to settle issues with your partners. It is bad, though, because you can skip some important points in the charter, and the judicial practice of private enterprises is extremely contradictory.

Other forms of business entities are not very common.

Decisions on the form of business entity are not always obvious – it happens that the features of business require a creative approach. In order to make the best decision, you need to have a good understanding of the laws and precedents.

Problems of business registration

Apart from choosing the form of ownership, you may face difficulties with document preparation.

Document registration and deadlines. The registration procedure is described in the Law on State Registration of Legal Entities – Entrepreneurs and Public Associations. The difficulty lies in proper preparation and submission of the documents to the registrar, and registering the company in the tax office, pension fund and statistics office.

Bureaucracy and queues. In addition to the legal side of the matter, you may face bureaucracy issues in Ukraine. For example, you need to file a certificate within two weeks, but because of delays and queues, it may take you a month instead. The submission deadline expires and you have to start the process all over again. This takes extra time and money.

Service on business registration

We can open an enterprise in one day and register it in two weeks, whether it’s an individual entrepreneur, LLC or a more complex form of ownership.

Our service package includes:

  • Consultation. Assistance in choosing the form of ownership. Advice on a legal address, Classification of Business Activities, naming, amount of the authorized capital. Tax and accounting advice on the form of taxation.
  • Preparation of documents. Development of the charter, drawing up of the protocol and orders.
  • Company registration. Submission of documents to the registrar, registration with the tax authority, registration of the VAT payer and/or single tax, receipt and registration of digital signatures, production of a signature and seal card (if necessary), opening a bank account, accreditation at the customs office for those involved in foreign trade activities.

We register all possible forms of ownership without any delays or fails.

To book a consultation or full registration of a company, please, complete the form below, call us back or come to the office.

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