Cost of Opening a Legal Entity in Ukraine: Detailed Overview and Calculations

Opening a legal entity in Ukraine is a major step for entrepreneurs, both local and foreign investors. It offers many opportunities, but it also comes with a number of financial obligations. In this overview, we will take a detailed look at how much it costs to open a legal entity in Ukraine, how much it costs to maintain it, and what factors can affect their size.

1. Registration Fees and State Duties: One of the main components of the costs of opening a legal entity are registration fees and state duties, as well as the costs of a notary for notarization of the charter. On average, all these costs will cost you 200.00 USD. These costs are mandatory and form the initial part of the budget.

2. Authorized Capital: Authorized capital is the amount of money a company must have on its account. In Ukraine, the authorized capital may be nominal and amount to only 1 hryvnia. However, for some types of activities, as well as if there are foreign investors, it is recommended to have a more substantial authorized capital.

3. Legal Services: To ensure a correct and problem-free opening of a legal entity, many entrepreneurs turn to law firms. Fees for legal services can vary significantly depending on the complexity of the task and the specifics of the business. On average, the services of a lawyer who will comprehensively deal with the opening of your company, will cost you 500.00 USD. 

4. Renting an office or commercial space: If your business requires an office or commercial space, the cost of rent should also be considered. The cost of rent depends on the size and location of the space. However, you must have a registered office, the rent for which with secretarial services will cost an average of USD 150.00 per year.

5. Accounting Services and Taxes: After registering a legal entity in Ukraine, you are obliged to keep accounting records and pay taxes. This often requires the services of an accountant or accounting firm. The amount you will pay for accounting services depends on the complexity of your business. If there are no business operations, it is worth laying down $35.00 USD. This is $35.00 per month for filing blank reports with the IRS. If you will have a small number of business transactions, it is worth budgeting 75 - 100.00 USD per month for an accountant.

6. Other Expenses: In addition to those listed above, there may be other expenses such as advertising, licenses, insurance and others. Their cost will depend on the specifics of your business.

7. Operating Expenses: These expenses include employee salaries, utilities, equipment, and other costs associated with the day-to-day operations of your company.
    

Final Calculation

Thus, the cost of opening a legal entity in Ukraine can vary significantly depending on many factors. On average, the initial costs can range from several hundred dollars to several tens of thousands of dollars. U.S. dollars to several tens of thousands of dollars. It is important to conduct a detailed budget analysis and take into account all possible costs before starting the process of opening a company in Ukraine.

Conclusion

Opening a legal entity in Ukraine is a serious step that will require significant financial and organizational resources. However, a properly planned process can bring significant benefits and open up new opportunities for your business. Remember to consult with experienced professionals to ensure a smooth and legal opening of your company in Ukraine.

For fast and qualified advice on opening a legal entity in Ukraine, please contact Trans-Hope at the following contacts: