Тo any person or group of people who decide to start a business or expand their existing business, there is a number of crucial questions:
- to register as a private entrepreneur or start a business?
- what legal form to choose?
- what form of taxation will minimize company expenses?
The lawyers of the Law Firm "Victor Reshetov and Partners", will help you find answers to these, as well as a number of other important questions.
A few words about the classification of legal entities in Ukraine:
Nowadays, the only normative classifier of types of legal entities is the "Classification of Organizational and Legal Forms of Management", approved by the Order of the State Consumer Standard of Ukraine from May 28, 2004 No. 97 with the latest changes of the Ministry of Economic Development of Ukraine from June 19, 2015.
But this classifier does not fully reflect the actual options for choosing a legal entity. Based on many years of experience of registration of business entities, we suggest you familiarize yourself with our vision of the classification of legal entities:
Commercial partnership:
- Additional Liability Company (ALC)
- Limited Liability Company (LLC)
- Limited Partnership (LP)
- General Partnership
- Joint-Stock Company:
- Private Joint-Stock Company
- Public Joint-Stock Company:
- Holding Company
1) Cooperatives:
- Production cooperatives
- Consumer cooperatives
- Service cooperatives
2) Cooperative societies:
- Cooperative associations
- Alliances
- Unions
- Leagues
Public Associations:
1) Public unions:
- Creative unions
- Trade unions
- Others
2) Civil Organizations:
- Charity organizations:
- Charitable foundations
- Charitable institutions
- Charitable societies
- Religious organizations:
- Religious community
- Religious authorities/centers
- Religious brotherhood
- Spiritual Educational Institutions
- Monasteries
- Missions
- Advocates unions
- Political parties
Financial institutions:
- Banks
- Joint Investment Institute
- Pawnshop
- Trusts
- Credit unions
- Insurance companies
- Exchange
- Leasing companies:
- Financial Stocks
- Commodity Finance
Enterprises:
1) Enterprises:
- Private enterprise
- Enterprise with foreign investments
- Foreign enterprise
- Subsidiary company
- Enterprises of collective ownership
- Investment enterprises
- Farms
- Mixed ownership enterprises
- Public unity company
- Unitary enterprises
2) Joint enterprises:
- Associations
- Cooperation
- Consortium
- Concerns
Other legal entities:
- Judicial authorities
- Local government authority
- Public authority
- Stated owned enterprises
- State Joint-Stock Company
- Government agency
- State institution
- Municipal organization (Municipal institution)
What legal form to choose?
Today, the vast majority of legal entities are limited liability companies (LLCs). And this is not surprising, because this type of legal entity has several advantages, namely:
- lack of a minimum amount of authorized capital;
- the members of the LLC do not risk their own property, but are responsible for the obligations of the LLC only within the limits of the contributions to the authorized capital;
- the founders of the LLC can be both legal and natural persons, including non-residents of Ukraine.
However, it is not always a limited liability company that will fit your goals and future goals. In addition to LLC, there are many other types of legal entities, which differ in the order of formation, the way of formation of authorized capital, the ability to engage in certain activities, features of taxation, etc.
For example:
- in order to engage in such activities as a pawnshop, you need to register an exclusively complete company;
- the minimum size of the authorized capital of a joint-stock company is 1250 minimum wages based on the minimum wage rate in force at the moment of creation (registration) of the joint-stock company;
- the service cooperative has the right to register a non-profit organization and not pay VAT.
In order to help you choose the right kind of legal entity for you, we need the following information:
- purpose of creation of the future legal entity;
- type of activity;
- number of founders;
- the expected revenue of the company.
After receiving this information, our lawyers will quickly and efficiently select the legal form of a legal entity that will help you to achieve high results in doing business.
Read more:
Registration of a company in Kyiv and in other regions of Ukraine - Limited Liability Company
Registration of a Farm in Ukraine
Advantages of doing business in Ukraine
State Registration Service of Ukraine
Foreigners buying a property in Ukraine. What can be done before purchase?
Ukraine property. What does a foreign citizen need to buy a flat in Ukraine?
Opening a Bank Account in Ukraine for Foreigner or Nonresident
Legalization of documents in Ukraine