On 9 July 2019 the Ministry of Justice of Ukraine presented a new service of online state registration of limited liability companies (LLCs) acting based on a model charter.
The new service is another leap in the deregulation and simplifying of doing business processes in Ukraine.
The service can be used to set up a new LLC, as well as to switch the existing LLC to the model charter activity format.
The main advantages of the introduced service are:
- no need to draft the incorporation documents, all documents are generated by the system based on questionnaire filled in by the applicant;
- no need to physically submit documents to the state registrar, everything is done online;
- simultaneously with the state registration LLC can also register for VAT and apply for use of simplified taxation system; and
- risks of rejection and human factor mistakes are minimal.
At the same time, the following should be considered during the online registration:
- registration can be performed only with the electronic signature that can be obtained through several accreditation centres;
- online registration is available directly to founders-individuals or Ukrainian companies, while founders - foreign companies cannot perform the registration online, as obtaining of electronic signature is not available to foreign legal entities;
- there is a limited number of variable clauses in the model charter; and
- the service cannot be used to introduce amendments to the state registry regarding LLCs (e.g., appointment of a new director, change of LLC address, etc).
The service is available on the portal of the Online House of Justice as well as the Government portal.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
