--- canonical: "https://euincnow.com/company-formation-ukraine" dateModified: "2026-10-11" --- # Company Formation in Ukraine: Types, Taxes and Costs Forming a company in Ukraine takes roughly 1 to 3 business days to register a TOV (the local limited liability company), or about 3 to 7 business days end to end for a foreign-owned setup once apostilled documents are ready. There is no minimum share capital, corporate profit tax is 18% (or a 9% withdrawn-capital option for IT firms in the Diia City regime), and standard VAT is 20%. Non-residents can incorporate remotely through an apostilled power of attorney, though the appointed director must be a Ukrainian citizen or a foreigner holding a residence or work permit. ## Ukraine at a glance - Ukraine is outside the European Union. Its companies follow the jurisdiction's own incorporation rules. Compare company types, capital, tax, timing and signing requirements before you choose. The proposed 28th Regime (EU Inc) is a separate option that is not available yet. ### Company types in Ukraine - TOV (limited liability company) The most common form for foreign investors: liability limited to contributions, no statutory minimum capital, one or more shareholders, and 100% foreign ownership allowed. - FOP (individual entrepreneur) A sole trader popular with IT freelancers for the simplified single-tax system, but it usually requires a Ukrainian tax ID and residence, so it rarely fits non-residents. * Company formation in Ukraine: key facts (last reviewed July 2026) - Corporate tax Standard corporate income tax is 18%, with no local surtax. IT companies in the Diia City regime can stay on 18% or elect a 9% tax on withdrawn (distributed) capital, paying tax only when profit is distributed. Higher rates apply to the financial sector. - VAT rate Standard VAT is 20%, with reduced rates of 14% and 7% and 0% on exports. Registration is mandatory above UAH 1 million of taxable supplies. - Dividends & payroll taxes Dividends from corporate-tax-paying companies are taxed at 5% for individuals (9% otherwise), plus the military levy. Personal income tax is 18% plus that levy, and the employer's unified social contribution is 22%. - Minimum share capital No statutory minimum capital for a TOV; founders set the amount (it can be nominal) and pay it in within six months of registration. - Setup time State registration of a TOV usually takes 1 to 3 business days; a foreign-owned turnkey setup runs about 3 to 7 business days, plus lead time to apostille and translate the foreign corporate documents. - Remote setup Yes. A non-resident can incorporate fully remotely with a notarised, apostilled power of attorney to a local lawyer. One limit: a foreign individual cannot serve as director until a work or residence permit is issued, so a Ukrainian-resident director is often appointed for registration. - Director / residency Founders and shareholders can be any resident or non-resident with full foreign ownership, but the director must be a Ukrainian citizen or a foreigner holding a residence or work permit; nominee directors are not allowed. UBO disclosure is mandatory. - Banking options A Ukrainian corporate account is required; international and commercial banks such as Raiffeisen Bank Aval and Citibank are more flexible for non-resident founders than the large state banks. The director or an authorised signatory is usually expected in person. * Ukraine is not an EU member; it is an official EU candidate (status granted June 2022, accession talks opened June 2024), outside the EEA and EFTA, trading with the EU under the DCFTA. Its flagship draw for tech founders is Diia City, a special IT regime offering 5% personal income tax, a 9% withdrawn-capital tax option and investor-friendly structuring. The country operates under martial law, yet registration, banking and tax continue to function. The currency is the hryvnia. ## How to register a company in Ukraine - Step by step, this is how a Ukraine formation actually runs: 1. **Prepare the charter or use the model.** A TOV (LLC) can adopt the model charter to skip drafting; foreign founders add notarised, apostilled powers of attorney and translations. 2. **File the registration.** State registration is free and completes within about 24 hours; the Diia ecosystem digitises much of the process for those with Ukrainian e-ID. 3. **Tax registration.** Choose between the general 18% CIT system and the simplified single tax (Group 3, 5% of turnover) where eligible. 4. **Banking.** Open the corporate account; international-group banks are the most non-resident-friendly, with martial-law currency rules to respect. 5. **Ongoing compliance setup.** Appoint the accountant and set up e-signature keys for tax filings. ## What company formation in Ukraine costs - State registration is free and there is no minimum capital, so remote founders mostly pay for the power of attorney, translations and legal help, commonly EUR 150 to 400 in total. Accounting typically runs EUR 100 to 250 a month. Wartime insurance and banking constraints are the practical costs to weigh. ## Who can form a company in Ukraine - Check ownership eligibility separately from director, local-address and licensing requirements. Permission to own shares does not automatically give you permission to live or work in Ukraine. The director and residency information above identifies the main formation conditions to review. - Ukraine fits founders committed to its exceptional tech talent and rebuild-era opportunities, with the 5% single tax as a lean regime for services. War-related banking and transfer constraints are real operating factors; it is a conviction jurisdiction with genuine upside. ## After registration: what Ukraine expects each year - Simplified-system companies file quarterly single-tax returns; general-system companies file CIT annually with quarterly interim reporting at scale. VAT (20%) applies past UAH 1 million of turnover. Currency-control rules under martial law affect dividend repatriation, so plan distributions with the accountant. ## Ukraine and the 28th Regime (EU Inc) - EU Inc, the proposed 28th Regime, would add a harmonised company form in EU member states. Registration is not open and no launch date is confirmed. Ukraine is outside the EU, so forming a company there does not make it an EU company or guarantee access to the proposed regime. Read how to prepare an EU Inc company, or compare current options in company formation in Europe. ## Sources and review scope - Use the linked registries, authorities and specialist references to check the requirements for your company. A review of formation costs and filings does not replace a review of your tax position. - No separate topic-level check date is recorded for this profile. Confirm the current requirements with the linked authority before proceeding. ### Reference links - [taxsummaries.pwc.com][1] - [kreston.ua][2] ## Frequently asked questions ### Can a foreigner open a company in Ukraine? - Founders and shareholders can be any resident or non-resident with full foreign ownership, but the director must be a Ukrainian citizen or a foreigner holding a residence or work permit; nominee directors are not allowed. UBO disclosure is mandatory. ### How long does company formation in Ukraine take? - State registration of a TOV usually takes 1 to 3 business days; a foreign-owned turnkey setup runs about 3 to 7 business days, plus lead time to apostille and translate the foreign corporate documents. ### What corporate tax does a company in Ukraine pay? - The headline summary is 18% (9% Diia City), with standard VAT of 20%. Company form, activity, size and where the business operates can change the treatment. Read the detailed tax information and confirm the rules for your case. ### Can I form a company in Ukraine remotely? - Yes. A non-resident can incorporate fully remotely with a notarised, apostilled power of attorney to a local lawyer. One limit: a foreign individual cannot serve as director until a work or residence permit is issued, so a Ukrainian-resident director is often appointed for registration. ## Source URLs [1]: https://taxsummaries.pwc.com/ukraine/corporate/taxes-on-corporate-income [2]: https://kreston.ua/en/diia-city-for-startups-how-to-legally-save-on-taxes-and-grow-a-unicorn/