Subsidiary Company or Representative Office: A Legal Guide for Foreign Investors in Ukraine..


The Legal Alliance Law Company prepared a brief review of basic legal aspects that should be taken into account by foreign investors that consider entering the Ukrainian market not only by

exporting their products or services to it, but also by establishing their constant presence on this market through creation or acquisition of a local branch.

As shown in the Guide, investors may, in general, opt for a number of different forms of legal entities in Ukraine, the structure and operation of which are much similar to the European ones.

Generally, the most common forms to opt for when entering the Ukrainian market are represented by limited liability companies (“LLC”) and joint stock companies (“JSC”). The Ukrainian legal system also allows for creation of a representative office (“RO”) which is a special form designed for representation of foreign entities in Ukraine.

The Legal guide outlines the following main aspects:

- Legal forms of business units in Ukraine;

- Short overview of the Ukrainian taxation system;

- Representative Office vs. Legal Entity: advantages and disadvantages;

- Representative Office vs. Legal Entity: taxation issues;

- How it works in practice.

It should be taken into account that Ukrainian legislation is still developing and frequently changing. Present legal guide cannot be relied upon as a comprehensive legal advice. Actual legislation and law enforcement should be analyzed in every specific case with a law office based in Ukraine.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Oleksiy Bezhevets, Legal Alliance Company | Attorney Advertising

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