Private enterprise registration

Registration period — from 1 to 4 business days. Cost — UAH 1,000. Ongoing legal support — by arrangement.

Documents to be provided

• copies of the passports and tax identification numbers of the founders
• for non-resident individual founders — obtaining a tax identification number from the tax administration, and a translated and duly certified copy of the passport
• documents confirming the location (registered address) of the enterprise, if available
• the name of the enterprise to be created
• the amount of the charter capital and the distribution of shares among the participants
• the main types of activity (business classification codes)
• a notarised power of attorney from the founder(s)
• the chosen taxation system

Documents we prepare

• the founder's decision to create the enterprise
• orders appointing the head of the enterprise
• other necessary documents

What the legal service includes

• preparation of the complete set of constituent documents
• payment of State duties
• registration with the relevant district administration
• obtaining the certificate of State registration of the legal entity
• obtaining the statistics certificate
• production of the seal
• registration with the Pension Fund and obtaining the relevant notice
• assistance in opening a current bank account

Under the legislation, the private enterprise is one of the least regulated organisational and legal forms — which makes competent preparation of the constituent documents particularly important.

What a private enterprise is

The private enterprise is mentioned only in the Commercial Code. A private enterprise is one that operates:

• on the basis of the private property of one or more citizens and their own labour, or with the use of hired labour
• on the basis of the private property of a business entity that is a legal person

Accordingly, the founders of a private enterprise may be individuals (there is no formal limit on their number, but where there are more than ten it should already be a joint-stock company) or a single legal entity.

Where a private enterprise is created by several individuals, it is regarded as a corporate enterprise: the charter capital is divided into shares, and the share of each founder is defined in the charter. This does not, however, turn the private enterprise into a business association.

Advantages of this legal form

For some business associations the legislation prescribes a minimum charter capital. One of the advantages of a private enterprise is therefore that the founder may determine the size of the charter capital at their own discretion.

The owner of a private enterprise is not liable for its obligations and bears responsibility connected with the enterprise's activity only within the limits of their contribution to the charter capital.

A private enterprise is a full-fledged legal entity: it may own separate property, acquire and exercise property and personal non-property rights in its own name, bear obligations, be a plaintiff and a defendant in court, and open bank accounts.

Practical details

At the moment of registration the director of a private enterprise may only be a citizen of Ukraine; having an accountant is not obligatory. If the owner later wishes the enterprise to be managed by a foreigner, the relevant work permit must be obtained.

The location (registered address) of the enterprise may be the owner's place of residence, if owned by them, or leased premises.

Approximate cost of notarial services: certification of the charter — UAH 250; power of attorney from one founder, including a notarised copy — UAH 200.