Every year, Ukrainian entrepreneurs and companies, including those created by foreigners, increasingly enter the international market and seek to work with foreign companies. Our company has been providing legal support for such companies for many years, so we want to share our experience with those who are planning foreign economic activity in Ukraine.
Where to begin?
You need to officially register the business. The most popular form now is – an individual entrepreneur or a limited liability company. There is no need to be afraid of this, since this is a simple procedure that takes 1-2 days. We help to prepare all the necessary documents, and you will only have to sign them at the registrar.
After that, you need to choose a taxation system: general or simplified. The general system is a tax of 18% on profits and 20% value added tax (VAT). The simplified system (single tax) is 5% of income or 3% of income plus 20% of VAT.
Foreign currency account
After registration, you receive an extract, which is equivalent to a business registration certificate. After that, you need to select a servicing bank. When choosing a bank, you need to consider: comfort, technological capabilities, ease of working with foreigners, business reviews, etc. You need to open a foreign currency account at the bank. Our experts are ready to accompany you at this stage. At the same time, the bank will check you as a client, the source of funds, property status, business specifics, etc.
Contract with a foreign company
The basis of any foreign economic activity is a contract. In accordance with the contract, funds will be credited, obligations, terms of deliveries and payments will be determined. Today in Ukraine it is allowed to conclude a contract in written and electronic form. In Ukraine, when delivering goods, everyone adheres to the rules of international trade Incoterms 2020. These are international rules that are recognized by customs authorities around the world as the basic conditions for international trade. Incoterms covers the rights and obligations of the parties under the contract of sale in terms of transportation of goods, liability for the loss of goods, customs clearance and insurance.
Therefore, the development and approval of a contract, taking into account the Incoterms Rules, is an important component on which the success of a business depends. Over the past 10 years, we have developed hundreds of contracts, so we are ready to develop a contract for your company, taking into account all the details of your business.
How are the calculations going?
The money paid to you by a non-resident is first credited to the bank’s distribution account. After that, the bank checks whether you have a contract (invoice), performs verification of the counterparty, financial monitoring, and then only credits money to your personal account.
It is important to know that financial transactions from 400,000 UAN (10,000 $ USA) are subject to financial monitoring.
Important! The proceeds from the export of services (goods) must be credited to the foreign currency account within the time period stipulated by the contract, but no later than 180 days from the date of transfer of the goods. Also, the goods must be delivered no later than 180 days from the date of payment in favor of a non-resident.
We advise our clients on a daily basis on various issues, so we have extensive experience that allows us to provide legal protection for your business. Foreign economic activity is a huge field of activity, where it will not be easy without an experienced legal adviser. Our team is ready to take care of organizing your business in Ukraine!