Miller Magazine Issue: 121 January 2020

74 MILLER / JANUARY 2020 In recent years, Ukrainian lawmakers have tried to simplify the condi- tions for opening companies and doing business in Ukraine. It con- cerns, in particular, corporate and currency legislation, which have faced significant changes within the last two years. Let us review key points of doing business in Ukraine. Establishing business in Ukraine – key points FORM OF BUSINESS ACTIVITY Business activities of a non-resident in the territory of Ukraine may be performed either by means of registration of the representative of- fice or opening the company. One of the main differences is that the representative office is not a legal entity and its responsibility is not limited to the authorized capital. Therefore the founder’s choice often falls on establishment of the company. While choosing legal form of the Ukrainian company, the most frequent variant is a limit- ed liability company. Such form of company is well regulated by the legislation of Ukraine and allows solving all the typical tasks of the for- eign founder, without any unnecessary addi- tional formalities (e.g. issuing shares, as com- pared to a joint-stock company). FOUNDER AND DIRECTOR OF THE COMPANY Founders of Ukrainian companies can be both natural persons and legal entities - non-residents (either sole or jointly with busi- ness partners). The Constitution of Ukraine prescribes that foreign citizens in the territory of Ukraine shall have the same rights and obligations as the Ukrainian citizens. The main requirement is that a non-resident of Ukraine shall reside in the territory of Ukraine legally. In order to in- corporate the Ukrainian company, the foreign Irina Voyevodina Mehmet Doğu Partner Interlegal-Ukraine Partner Interlegal-Turkey