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 content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.