How Intermarium Assisted a Swiss Foundation in Expanding to Ukraine

Our client, a Swiss foundation engaged in media and information activities, aimed to expand its operations in Ukraine and required a comprehensive and legally sound mechanism for formalizing this process. Entering a new market involved a number of regulatory, legal, and administrative challenges, requiring thorough analysis and a strategic approach.

Key Challenges Faced by the Client

• Determining the appropriate form of operation in Ukraine: Taking into account the specifics of Ukrainian legislation and the foundation’s needs.

• Absence of ownership structure and beneficiaries: As a non-profit organization, the foundation does not have ultimate beneficial owners in the traditional sense, which created difficulties in complying with Ukrainian legal requirements.

• Financial and tax considerations: It was necessary to identify the optimal tax model that would comply with both Ukrainian regulations and international standards.

• Legal requirements for registration: To successfully formalize its operations in Ukraine, it was critically important for the client to timely and correctly prepare the full package of registration documents, considering the strict deadlines for submission.

We provided the client with a full range of legal consulting services regarding expansion into Ukraine, including the selection of the optimal organizational structure, legal formalization, and tax planning.

1. Selecting the Optimal Form of Operation in Ukraine

• Analyzed various registration options and their legal implications.

• Determined that a foreign representative office was the best solution, as it allowed the foundation to conduct non-profit activities without establishing a separate legal entity.

• Developed a clear roadmap for opening the representative office and ensuring smooth interaction with the headquarters in Switzerland.

2. Tax Consultation

• Conducted a tax analysis on the operation of a non-profit organization in Ukraine.

• Identified the most effective financial mechanisms for supporting the representative office in compliance with Ukrainian tax legislation.

• Assisted the client in understanding financial obligations in Ukraine and avoiding unnecessary tax risks.

3. Document Preparation and Legal Support for Registration

• Prepared the complete set of documents required for the registration of the representative office.

• Coordinated with the foundation in Switzerland to obtain and properly legalize the necessary documents.

Results

1. The foundation successfully completed the registration of its representative office in Ukraine, allowing it to commence operations in compliance with local legislation.
2. The legally substantiated position regarding the absence of beneficial owners was accepted by Ukrainian authorities, preventing registration issues.
3. The tax model was optimized, enabling the client to effectively plan the financing of its activities in Ukraine.
4. All documents were properly prepared and aligned with Ukrainian legal requirements, minimizing regulatory risks.

Why is this important?

This case demonstrates how a well-structured legal strategy can help international non-profit organizations successfully expand their operations in Ukraine, resolving issues related to registration, legal compliance, and tax planning. If your business or organization is considering expanding into the Ukrainian market, it is essential to anticipate all legal and tax aspects in advance to avoid complications and ensure a smooth start.