Establishing a Limited Liability Company (LLC) as a foreigner in Ukraine is not an uncommon practice. Citizens from other countries often identify numerous business opportunities within our country. However, setting up a company in such a scenario comes with its own unique requirements. What does a foreigner need to become a founder or co-founder of an LLC in Ukraine?
Tax Identification Number (TIN)
First and foremost, a foreigner needs to obtain a Tax Identification Number (TIN), known as "РНОКПП" in Ukrainian. This process is carried out through the tax authorities. To obtain the TIN, you will need a copy of your passport translated into Ukrainian (a notarized translation is required). It is advisable to have a translator with you if you plan to personally submit the documents. Alternatively, it is even better to entrust individuals or agencies that can handle all the necessary procedures comprehensively. They can obtain the taxpayer identification number and prepare all the required documentation for the LLC registration. In this case, the foreigner would only need to provide a power of attorney. If you choose to collaborate with us, we will assist in drafting the power of attorney and provide guidance on the subsequent steps and where to submit it.
Passport Copy
A copy of the passport will indeed be necessary during the process of obtaining the taxpayer identification number, as mentioned previously. However, if the foreigner is to be one of the ultimate beneficiaries (and if they happen to be the sole founder, they will unquestionably be the ultimate beneficiary), a copy of their passport is submitted for LLC registration. Importantly, this copy must come with a notarized translation into Ukrainian. It is advisable to opt for a notarized translation right from the outset (as opposed to using a translation bureau stamp), to prevent the need for a second translation later on.
Power of Attorney
If the foreigner prefers not to personally navigate all the administrative procedures or has no plans to visit Ukraine until everything is ready, they will need to issue a power of attorney. If they decide to collaborate with us, the power of attorney will be designated to our team members, and we will furnish the necessary text for it. However, the foreigner will need to notarize it by a local notary, and subsequent steps will depend on the country of their location.
There exist several countries with which Ukraine maintains agreements for the mutual recognition of documents. In such cases, notarizing the power of attorney suffices. Some countries are signatories to the Hague Convention, which means an apostille is affixed to the documents. Nevertheless, there are countries that neither belong to the Hague Convention nor have mutual recognition agreements with Ukraine. In such instances, the power of attorney will need to undergo legalization.
The process of legalization is multistep, but there is no need to worry about it in advance. Our team will provide you with the requisite guidance and recommendations.
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If a foreigner intends to become the director of this LLC
When a foreigner establishes an LLC in Ukraine and aims to be the sole founder, it's natural that they would also want to serve as its director. However, the process is not entirely straightforward. To become the director of a Ukrainian company, a foreigner must first obtain a work permit in Ukraine. In principle, the company registrar doesn't object. They can appoint the foreigner as the director right away. However, issues and complications with Ukrainian government agencies may arise (and are highly likely to do so). Therefore, it's advisable to ensure everything is done correctly from the outset.
Our company can analyze your request and needs, and create a workflow algorithm tailored to your specific interests. Begin your business endeavors in Ukraine securely!
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