A legal entity may conduct business in the form of private enterprise, limited liability company or additional liability company, general partnership, limited partnership, joint-stock company etc.
An individual person – entrepreneur (private entrepreneur)

The right to establish individual person – entrepreneur (private entrepreneur) has only a person with full legal capacity. The law sets limits on the number of people who can conduct business in the form of individual entrepreneurs. In particular, such activities are not allowed to engage officers prosecutors, internal affairs, courts, public safety, military, judges, notaries (government) officials of public authorities that are designed to monitor the activities of enterprises. And this prohibition applies to persons for which barred the court, or who have not withdrawn or not canceled for acquisitive crimes.

Business activity of   individual person – entrepreneur is covered also by legislation which govern economic activity of legal entities.

The advantages of this form of business is that  individual person – entrepreneur may transact business directly as an entrepreneur with or without the involvement of hired labor, alone or jointly with others. Individual registration is simple and cheap (in comparison with legal entity).

However, main minuses are: It should be noted that the individual person – entrepreneur  is responsible for his/her obligations by all assets (full responsibility). Also, foreigner to register as  individual person – entrepreneur shall be registered at official address in Ukraine. And according to the Tax code of Ukraine, foreigner  individual person – entrepreneur cannot be the payer of unified (simplified) tax. So, now it’s not cheap as it was till 2012.

Private Enterprise

Private enterprise is form of legal entity. The main advantage of private enterprise as a legal form of business in Ukraine is absence of obligatory statutory fund (authorized capital) and that responsibility for the obligations of the founders of the private enterprise is only within the statutory fund. The founder of private enterprise in accordance with current legislation of Ukraine may be one or more citizens of Ukraine, foreigners, stateless persons and legal entity. A  private enterprise needs official address (office) before registration and founders shall appoint director.

Private enterprise may be payer of general tax system (profit tax – 21%), VAT or simplified tax system (5% from income or 3% form income plus VAT). However, if the founder of private enterprise is another legal entity which possess more than 25% of shares and this legal entity is not simplified tax payer, so  private enterprise cannot be a simplified tax payer. This rule concerns only founders – legal entities (not individuals).

Limited Liability Company

According to the legislation of Ukraine to establish limited liability company (LLC) likewise private enterprise may be incorporated by one or more individuals and one or more entities (but all together not more than 100 founders). However, there is a limitation that the limited liability company in Ukraine may not be established by a sole founder – legal entity, which was founded by a sole person.

 The main advantage of LLC (same as for private enterprise) as a legal form of business in Ukraine is absence of obligatory statutory fund (authorized capital) and that responsibility for the obligations of the founders of LLC is only within the statutory fund. Limited liability company requires official address (office) before registration and founders must appoint director (who will got salary and pays taxes from the salary).

General Meeting of Shareholders is the highest management body of the Limited Liability Company.  A Shareholders Meeting is considered competent if attended by the Shareholder or the Shareholders (representatives of Shareholders) who have more than 60 (sixty) percent of votes in total.  Shareholders Meeting shall have the right to decide on all matters of the  Limited Liability Company including the ones Shareholders Meeting transfers to competence of other bodies of the Limited Liability Company.  Decisions on all issues of limited liability company activity (excluding changes and amendments to the Statute etc.) shall be taken by simple majority of the Company Shareholders who are present at the Shareholders Meeting.

Limited Liability Company in Ukraine may be payer of general tax system (profit tax – 21%), VAT or simplified tax system (5% from income or 3% form income plus VAT). However, if the founder of limited liability company is another legal entity which possess more than 25% of shares and this legal entity is not simplified tax payer, so   limited liability company cannot be a simplified tax payer. This rule concerns only founders – legal entities (not individuals).

As we can see, almost there is no difference between  limited liability company and private enterprise. But  limited liability company is more popular in Ukraine due to the more detailed law regulation and thus this form is  better protected against raider attacks than others forms of business in Ukraine; also better regulates relations between founders.

Other forms of business in Ukraine

Additional liability company. Founders of this company are responsible by their contribution to authorized capital and  additionally by their own property. Full partnership company – a partnership, all founder are responsible for everything jointly. Special partnership company – a company in which additionally to one founder who bear full responsibility by his/her own property there is another funder who is responsible within contribute to authorized capital.

Joint-stock company (private or public) is a commercial company that has share capital divided by certain number of shares with equal nominal value, and is responsible for its obligations only by property of the joint-stock company, and shareholders bear the risk of losses associated with the company’s activities within the value of their shares .

There are also forms of business in Ukraine which are based on contractual relations. Association - contract union, established to coordinate permanent business activity of few enterprises united by one or more centralized production and administrative functions of specialization and cooperation of production, organization of joint production through the association of members of the financial and material resources mainly to meet the economic needs of association members. Corporation is a contractual association, created through a combination of industrial, scientific and commercial interests of enterprises. Consortium – a temporary agreement between several banks and industrial enterprises to share accommodation loans and financial transactions of a large industrial building. There are also other forms of business but they both as contractual  associations are not widespread and well legally regulated.

  Best option for foreigners in Ukraine when choose the form of business is limited liability company.

Concerning registration one of forms of business in Ukraine, please, contact:

Address: 3d floor, 18 Storozhenka str., Lviv 79018, Ukraine
E-mail: ua.legalaid@gmail.com
phones: +380972184275
+380504317084

The authors believe that persons who apply for a judge, except for the exam on knowledge of the general theory, must undergo special training before taking up their post. The relevant proposal the proposed project. Without such special training according to the document will be able to do only those who have experience as an assistant judge at least 3 years.

Project provides the inability of a disciplinary proceedings against judges on the basis of complaints and allegations, “which do not contain information about features of the offense” and also on the basis of anonymous complaints.

• Partial participation in the enterprises which are created together with Ukrainian legal and physical persons, or buying a part of workable plants;
• Creation of the enterprises which completely belong to foreign investors, branches or buying in the property the whole workable plants;
• Acquisition of immovable or mobile property by direct reception of property and property complexes or in the form of shares;
• Acquisition of the rights to use the earth and use natural resources in the territory of Ukraine;
• Acquisition of other property rights;
• Economic activity which basis on agreements and goods distribution;
• Other forms which aren’t prohibited by laws of Ukraine, including forms without creation of the legal entity only making contracts with subjects of economic activities from Ukraine.

The basic legal form of realization of investing in Ukraine is the agreement. Therefore during realization of investment projects act the rules, which usually accepted for the contractual agreements.

In 2010 foreign investors put 5 billions 986 million dollars of direct investments in the economy of Ukraine, it is on 6,2 % more than in 2009. The Public service of statistics of Ukraine reports about this fact.

At the same time, it is necessary to notice that the property which is imported into Ukraine as an installment of the foreign investor is released from taxation by a duty in an order established by the Law «About a mode of foreign investments Ukraine».

Very often the direct foreign investments are put only on acquaintance with enterprise management. Other cases concern “accidents” of business and it is impossible to analyze them. A great number of Ukrainian companies have no accurate strategy of development. Only large already have led the accounting records to standards to be inviting to foreign investors who are eager to invest Ukraine.

Even business sale in such conditions doesn’t solve a problem. Economic growth always stimulates development of small companies, and on the contrary. The quantity of small enterprises grows.

In Ukraine investments infrastructure functions are created and the branched out: share, commodity and universal stock exchanges, deposit takers, keepers, registrars, etc.

You might be interested in: Catalog of Ready Business

These acts, the Court does not include decisions of courts of general jurisdiction. The courts’ decisions can only be used by the commercial courts to establish the facts.

The court also pointed out that non-normative (individual) acts shall apply once and after implementation lose their force thats why economic courts must evaluate their along with other evidence in the case and have no pre-set force to court.

Law provides for raising taxes and fees including the consumer price index and producer price index of industrial products provided by the Cabinet of Ministers on 11.08.2010, № 701.

Under the Act, the excise tax collection for the first registration ofthe vehicle, environmental tax, tax on land, regulatory monetary evaluation which is carried out, and the fee for use of radio frequency resource of Ukraine will increase by 8.9 percent.

Thus, the rate of excise duty on malt beer will increase by 0.07 UAH for ethanol – at UAH 3.75 on sparkling wines – at 0.28 UAH for filter cigarettes – at 8.56 UAH.

Fees for use of mineral resources for mining, and for purposes notrelated to mining operations, the fee for special use of water andthe fee for special use of forest resources increased by 11.3percent.

According to the Law, when addressing regional centers for investment and development business investment with a request for assistance in investment projects, they shall assist them in this.

In particular, the regional centers will have to develop an operational plan for the preparation and implementation of investment projects and to create and issue the investor a package of documents required for investment projects.

Order issued pursuant to the Code of Administrative Procedure and the Code of Civil Procedure, the provisions which provide that, print media, which are placed the call is determined by Cabinet.

List of media sets forth the proposals of public administrations.

The grounds for issuing short-term visas have a contract of carriage of goods and passengers by road, as well as a license for international transport. Instead, the document confirming that the person is a co-founder of the joint venture or representative and enters to control the execution of contracts now need to show proof of registration of foreign investments into economy of Ukraine in foreign currency amounting to not less than 50 thousand U.S. dollars.

Among the new grounds for denying a visa called the lack of health insurance subject to the possibility of its registration in the State in which the candidate applies for a visa. Another new reason for refusal will be a lack of sufficient financial provision for the period of intended stay and to return to the country of origin or transit to a third country, and – inability to obtain sufficient financial support in Ukraine legally.

Cancel visas during their stay in Ukraine will be able to provide the facts on the stage of an invalid visa issued by another person or passport, forged documents or indications of false information, as well as when making a decision on forcible return or deportation from the territory of Ukraine.

Changes take effect after their official publication.