Registration of JSC

A joint-stock company is the largest and the most complex form of a commercial organization. A joint-stock company is a business company, the authorized capital stock of which is divided into a definite number of equity stakes with similar par value, equity rights for which are certified with shares. Joint-stock company is the most sustainable form of capital pooling over time. Withdrawal of any shareholder from the company will not entail termination of the company’s operation.

A joint-stock company is not held liable for the shareholders’ obligations. The shareholders are not held liable for the obligations assumed by the joint-stock company, and are exposed to risk of loss connected with the company’s activity only within the limits of shares they hold.

A joint-stock company may be incorporated through establishment or merger, split, spin-off or reconstruction of business companies, state-owned, communal and other enterprises into a joint-stock company.

Governance structure in a joint-stock company is the most complex and it is the most state-regulated, as compared to any other corporate forms.

Joint-stock companies may be of two types: public joint-stock companies (PJSC) and private joint-stock companies (PrJSC). The number of shareholders in a private joint-stock company may not exceed 100 persons. The number of shareholders in public joint-stock companies (PJSC) and the amount of their authorized capital stock are not restricted. However, PJSC may perform public and private placement of its shares. PrJSC may perform only private placement of shares.

The fact that PJSC allows for uniting almost unlimited number of contributors and their capitals, including small ones, may be regarded as an advantage of this form of business activity. This enables to raise significant funds within short time, to expand production and to gain maximum benefits of large production. Legislation does not set an upper limit for the authorized capital stock and number of PJSC shareholders.

A joint-stock company is considered incorporated and having corporate franchise since the date of its state registration in accordance with the procedure prescribed by law.

‘KD CONSULTING’ law & consulting firm will provide in-depth advice as for the appropriate corporate form for your business entity, will inform you of advantages and disadvantages featured by this or that form. In case the most optimal corporate form for your business entity in Ukraine is decided as a joint-stock company (JSC), our specialists will render the services related to drawing up incorporation documents and all relevant registration instruments, will assist you in equity issue and state registration of it, will conduct state registration of your JSC with the state register within the shortest possible time, and with tax authorities, pension fund and social security authorities; and will also assist in opening bank accounts and establishment (paying up) of the authorized capital stock, in company seal and stamp production, and will provide consultancy on optimal system of taxation, securities exchange etc.