Registration of RO

A representative office of a foreign entity is not a legal entity and does not perform independent business activity. A representative office acts on behalf of and under a power of attorney issued by a foreign entity, and fulfils its functions as prescribed with the applicable law of Ukraine. As a rule, activity of representative offices is of auxiliary character. They conduct market researches, search for new commercial contacts, and maintain awareness of local enterprises of the activity, products and services of their parent companies. The legislation provides for simplified tax treatment for such ‘non-commercial’ representative offices.

However, in accordance with the law of Ukraine, it is still possible for a foreign entity to conduct commercial activity via its representative office. In such case, a representative office is given a status of ‘permanent representative office’, and profit gained by the foreign entity from its commercial activity performed via such representative office are subject to taxation according to the standard procedure. Therefore, it is very important to understand the goals of opening a representative office of a foreign entity in the territory of Ukraine, and to take many other aspects – especially taxation aspects – into consideration. 

A foreign company intending to register its representative office in the territory of Ukraine must provide a list of documents as required by law, undergo a procedure of state registration with the Ministry of Economy of Ukraine, enter its information to the unified state register, and register with state tax service, pension fund and social security authorities.

‘KD CONSULTING’ law & consulting firm will provide in-depth advice on opening a representative office of a foreign entity in Ukraine, will analyze feasibility of its establishment and focus on all issues of concern related to its establishment and operation. Our specialists will render the services related to drawing up provisions on a representative office and all relevant registration instruments, will conduct state registration of your representative office with the Ministry of Economy of Ukraine and other governmental bodies within the shortest possible time; and will also assist in opening bank accounts, in corporate seal and stamp production, and will provide consultancy on taxation issues etc.