New rules for registration of branches and representative offices of foreign companies in Ukraine

On September 9, 2024, new rules for organizing the activities of representative offices of foreign companies on the territory of Ukraine will come into effect. Below we have collected for you a list of current innovations. And it is worth noting that Ukraine works tirelessly in the direction of establishing international cooperation, simplifying the registration and organization of activities for foreign representative offices on the territory of Ukraine.

Creation and start of work of foreign representative offices in Ukraine

The most significant step forward was the provision of the opportunity to conduct business activities of companies not only in accordance with the requirements of the legislation of Ukraine, but also in accordance with the legislation of the foreign country represented by the branch. This is a warning of the risks of violation of the law and avoids the imposition of fines. A legal entity knows its rights and obligations, as it clearly understands the legal requirements of the company’s activities at the level of its state.

Registration algorithm for registration of branches and representative offices of foreign companies in Ukraine

Prior to the innovations, the Ministry of Economy of Ukraine had the authority to consider issues related to the registration of representative offices. Now these functions will be assigned to the State Registrar. At this stage, it is important to submit the application correctly and collect a complete list of documents. In order to avoid rejection and the procedure of further appeal of the decision, you can engage a lawyer who will provide full qualified support and save your nerves, time and money. Our specialists are always in touch and ready to help.

The application is submitted by a legal entity or a person under a power of attorney who submits an application containing the following mandatory blocks of information:

• name of the foreign business entity;
• location and country of origin of the legal entity;
• Contact Information;
• date of establishment of a legal entity abroad;
• organizational and legal form of the subject and the number of employed workers;
• name of the bank in which the subject’s accounts are opened;
• types of economic activity;
• the address of the representative office in Ukraine;
• the number of foreign citizens who will work in the branch.

The purpose of opening such a representative office and whether employment relations with legal entities in Ukraine were previously established must also be indicated. If there are, it will be an advantage at the application stage.

The following documents are attached to the application:

• an extract from the trade register of the country where the main enterprise of the business entity is registered;
• a statement from the bank about an open account;
• a document confirming the authority of the manager of the representative office on the territory of Ukraine (previously it could only be a power of attorney, but with the new changes, any document legitimate abroad will do).
• the founding document of the foreign entity (for example, the founding agreement, charter), the ownership structure of the foreign entity and information about the final beneficial owner of the foreign entity;

The legislator established document requirements. They must be translated into Ukrainian and certified by the translator’s signature, as well as notarized and legalized by the Ukrainian consulate in another country.

Importantly! The term of legal validity of documents is six months from the date of their execution!

Modern realities have led to the introduction of another change – the establishment of representative offices and branches by states recognized as aggressors in Ukraine is prohibited.

Peculiarities of consideration of the appeal

If the submitted documents do not comply with the legislation, or an incomplete list of documents is provided, the application is returned to the legal entity for revision. In case of correct preparation of the documents, the foreign business entity receives a letter demanding payment of the administrative fee for the service provided.

WARNING! The cost of the service is one living wage for able-bodied people. In 2024, it is 2,920 hryvnias.

The term for consideration of the appeal is from 20 to 60 calendar days, but with the new changes, this term has been reduced to 5 working days.

If, based on the results of the review, a decision is made to allow the registration of a representative office, then information about the subject is entered into the Unified Register of Representative Offices, and the legal entity is given a Certificate of Registration of the Representative Office.

In case of refusal, the decision of the State Registrar is appealed to the administrative court.

To avoid an appeal, we advise you to contact our lawyers using the contacts indicated on the page. Our specialist will contact you as soon as possible.