Why open a branch

A branch or representative office is a separate subdivision of a legal entity that is located outside its location and performs all or some of its functions. This form of doing foreign business in Ukraine is quite convenient. With it, you can:

  • grow business;
  • explore new markets;
  • get closer to sources of raw materials, fuel, labor, customers, partners;
  • use parent authority for promotion;
  • to import goods and equipment necessary for their manufacture duty-free;
  • transfer funds tax-free;
  • be able to move foreign workers to work in Ukraine without specially issued Permits;
  • do not convert currency earnings;
  • Pay wages to resident employees in foreign currency.

 

The benefits are more than enough to make you consider branching out.

 

Thinking for business means doing everything to get what you want. Despite a foreign country, new legislation, different rules for doing business, different taxation. We do not forget about compliance with the requirements of labor protection, sanitary and fire safety, consumer protection, etc.

 

Why a branch and not a legal entity?

What’s the difference?

 

Legal entity:

  • an independent enterprise in the form of LLC, SE, registered from scratch, completely Ukrainian. Foreign company – founder, owner of part or all of the authorized capital;
  • speaks in its own name;
  • property both foreign and Ukrainian;
  • can be sold;
  • acts on the basis of the Charter;
  • responsibility is limited to one’s property;
  • Permission required for foreigners to work;
  • can create other representations;
  • register quickly and without registration fee.

 
Branch:

  • representation of a foreign company in Ukraine, without registration and attributes of an independent legal entity;
  • acting on behalf of the parent company;
  • owned by a foreign company;
  • cannot be owned by another legal entity;
  • acts on the basis of the Regulation, or Power of Attorney;
  • all responsibility on the parent company;
  • foreigners work on the territory of Ukraine with special cards;
  • does not create other representations;
  • registration is longer, in the removal of the registration fee.

 

The choice of registration form depends largely on the purpose. Other points are also taken into account:

  • the branch may be deprived of the right to conduct business activities, then it will be possible to avoid tax registration;
  • Some activities in Ukraine require a license, which is not issued to a representative office. Except for construction.

 

So in some cases it is desirable to register both forms: to use the advantages and minimize the negative aspects of each.

 

Algorithm for registering a branch

  1. We accept and formalize the decision of a foreign company to establish a representative office in Ukraine.
  2. Fill out the application for registration. The form is arbitrary. Required:
    1. name of foreign company;
    2. location of the company in the country of origin;
    3. media details;
    4. foundation date;
    5. the legal form of the foreign company;
    6. the scope of the foreign company;
    7. number of foreign company employees;
    8. bank name with current account number;
    9. locality where the representative office is opened;
    10. open target;
    11. scope;
    12. information about business relations with Ukrainian partners;
    13. collaboration perspectives;
    14. number of foreigners who will work on the territory of Ukraine.

      Original, on the letterhead of the company with a notarized signature of the founder, seal, apostille. We translate into Ukrainian.
  3. We collect a package of documents (standard for all types of activities), translate into Ukrainian, certify with an apostille:
    1. Document of registration of the parent company in the country of registration (Certificate, Extract from the register);
    2. Charter;
    3. photocopies of the founders’ and director’s passports;
    4. certificate of opening a bank account;
    5. minutes of establishing a representative office and appointing a director;
    6. copy of the director’s passport and TIN;
    7. power of attorney for the head of the branch.Documents for accreditation are submitted no later than six months from the date of their issuance in the country where the foreign company is located.
  4. We draw up a power of attorney for a representative in Ukraine to carry out registration actions. Or the founder acts personally.
  5. We are submitting a package of documents for registration with the Ministry of Economy of Ukraine.
  6. Paying the state fee.
  7. Getting a registration certificate. From that moment, the representative office of a non-resident is considered open.
  8. Register a representative office and a non-resident parent company with a local tax authority, a pension fund.
  9. We get a license for activity if it is required by Ukrainian legislation.

 

Conclusions

It follows from the algorithm that the most time-consuming process in opening a branch of a foreign company in Ukraine is the collection of documents. After the whole package is assembled, accreditation of a branch of a foreign company is already a matter of technique.

 

Partly so. A matter of technology and legal practice. It is quite easy to get the refusal of the Ministry of Economy, as well as to face a delay in the consideration of the case. Formalities are important in any government.

 

Besides, the legislation of Ukraine tends to constant changes, additions and exceptions. So the information provided for independent use may not be enough.

 

Specialists of Lawrange Lawyers Association are familiar with the full scope of requirements and conditions. We have experienced lawyers, tax consultants, lawyers in various areas of law.

 

We keep in mind that every business has its own characteristics and goals. It is not possible to choose one template solution suitable for each company. That is why the company’s specialists develop an individual development and service strategy for each client.

 

We will assist at the stage of determining the organizational and legal status of a separate division of the company, provide advice, prepare documents and carry out all the necessary procedures. Including translation and apostille of documents, their submission to the relevant authorities, opening a bank account, making a seal.

 

Our lawyers and lawyers take all necessary actions to achieve and obtain the desired result. Just entrust the registration of a branch of a foreign company in Ukraine to us, and calmly develop your business yourself.

 

FAQ

I want to open a representative office of an IT company. Do you need an office in Ukraine?

You can do without an actual office. You need a legal address for the location of the branch for registration. We can help.

 

What is the registration period for a foreign branch?

The law provides for the registration of a foreign representative office with the Ministry of Economy for up to 1 month. Thanks to experience and connections, we can speed up the process.

 

 

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