Ukraine
Set up a Ukrainian TOV in 1 day, free of charge. 18% CIT; IT sector uses 5% flat simplified tax.
Foreign Ownership Eligibility
Ukraine welcomes 100% foreign-owned companies
Fully remote formation — you never need to set foot in the country.
- 100% foreign ownership permitted in most sectors — foreign investors have equal rights to Ukrainian investors under the Law on Investment Activity
- No residency requirement for directors or shareholders — a foreign national can be sole owner and sole director
- No minimum share capital required — TOV can be registered with zero capital contribution
- State registration is completely free — no government registration fees apply
- Foreign director requires a Ukrainian tax ID number (IPN) — obtainable at a Ukrainian consulate abroad or in person at a Ukrainian tax office
- Registered address in Ukraine required — registered agent or virtual office address is acceptable
- Restrictions apply to: agricultural land ownership, media/broadcasting, banking (NBU licensing), defence sector, and subsoil/mining (licensing required)
Ownership
100% Foreign OK
Formation
100% Remote
Note
⚠️ Ukraine is under active martial law since February 24, 2022. NBU currency controls restrict dividend repatriation and outbound capital transfers. Banking operations are disrupted in conflict-affected regions. All investors must conduct a current risk assessment before incorporating. Western Ukrainian cities (Lviv, Uzhhorod) are far from conflict and maintain relatively normal business operations. Eastern and southern regions face active hostilities.
Tax at a glance
Ukraine Tax Overview
18%
Standard corporate income tax rate
Applies to all resident companies on worldwide profits; flat rate with no tiers for most companies; below OECD average
5%
Group 3 simplified (unified) tax — replaces CIT
For eligible companies with annual revenue up to UAH 10,091,000 (~EUR 226,000). Completely replaces standard CIT. Ukraine's IT sector has built multi-billion-dollar exports on this regime
25%
CIT for banks and financial institutions (from January 2025)
Higher rate for credit institutions and banks; distinct from the 18% rate for standard commercial companies
50%
CIT on bank profits specifically in 2026
An elevated rate applicable to banking sector profits in the 2026 tax year; not applicable to standard commercial companies
10 years
CIT exemption for industrial park participants
Companies operating in registered industrial parks qualify for a 10-year CIT exemption pending investment of tax-exempt funds in industrial park development
Up to 5 years
CIT exemption for Significant Investor regime (until January 1, 2035)
Investors with 'significant investment' status qualify for CIT exemption for up to 5 consecutive years; benefit capped and correlated to investment size
20%
Standard VAT rate
Reduced rates: 14% for certain agricultural products, 7% for medicines/medical goods/hotel services/cultural events, 0% for exports. Mandatory registration above UAH 1,000,000 (~EUR 22,000)
22%
Employer unified social contribution (USC)
Employer pays 22% of gross salary; employee PIT is 18% plus 1.5% military levy (19.5% effective rate on wages as of 2026)
15%
WHT on passive income payments to non-residents
Applies to dividends, interest, and royalties paid to non-resident entities; reducible by applicable double taxation treaties (Ukraine has DTTs with 70+ countries)
Pros & cons
Advantages & Considerations
Key Advantages
Zero minimum share capital — no financial barrier to TOV formation; a company can be registered with zero capital contribution under Ukrainian law.
Zero state registration fees — Ukraine eliminated company registration fees entirely. TOV registration is free via the Diia digital government portal (diia.gov.ua), making it among the lowest-cost formal company formations in the world.
18% flat CIT — below the OECD average for a straightforward, single-rate structure; no local or regional income taxes apply.
Simplified tax system (Group 3) at 5% of revenue — for businesses with annual revenue up to UAH 10,091,000 (~EUR 226,000), the Group 3 unified tax completely replaces standard CIT. Ukraine's IT sector has built a multi-billion-dollar export industry on this regime.
Large IT talent pool at lower rates than Western Europe — Ukraine has produced major tech companies (Grammarly, GitLab, Ring) and has a large pool of highly skilled, English-speaking software engineers available at significantly lower rates than Western Europe or the USA.
Industrial park 10-year CIT exemption — companies operating in registered industrial parks qualify for a 10-year corporate income tax exemption, pending direction of tax-exempt funds to industrial park development. Significant for manufacturing and logistics.
EU accession candidate — Ukraine received EU candidate status in June 2022; accession process creates long-term legal and institutional alignment with EU standards, progressive regulatory harmonisation, and access to EU structural funds in the post-war period.
Reconstruction investment opportunity — Ukraine's post-conflict rebuilding is expected to require hundreds of billions in investment. Companies with a formal Ukrainian presence early in the process may benefit from reconstruction contracts and EU-funded rebuilding programmes.
Large domestic market of ~43 million people (pre-war) — one of the largest in Eastern Europe; significant consumer and industrial base for domestic-market-oriented businesses.
Extensive FTA network — Ukraine has FTAs with the EU (DCFTA providing duty-free access to the EU single market for qualifying goods), EFTA, Canada, the UK, Turkey, Georgia, Israel, Montenegro, and Macedonia.
Considerations
⚠️ Active military conflict — the most significant risk. Active hostilities continue in eastern and southern Ukraine (Donetsk, Zaporizhzhia, Kherson, Kharkiv oblasts); significant infrastructure damage; displaced population; ongoing security risk. This is the primary operational reality for any business in Ukraine in 2026.
Profit repatriation restrictions under martial law — the National Bank of Ukraine (NBU) has imposed currency controls since February 24, 2022 that restrict outbound capital flows including dividend repatriation. Foreign investors may not be able to freely extract profits until martial law is lifted. Source: NBU — bank.gov.ua.
Banking disruption in conflict zones — banking services are severely disrupted or non-operational in occupied territories and active war zones. Banking in Kyiv and western Ukraine (Lviv, Uzhhorod) functions largely normally.
Agricultural land ownership permanently restricted — Ukraine's constitution and land law prohibit foreign nationals and foreign-owned companies from purchasing agricultural land; this is a permanent restriction unrelated to martial law.
Legal uncertainty under martial law — martial law modifications to tax compliance deadlines, banking regulations, and corporate law create a complex and changing legal environment. Professional legal advice is essential.
Currency devaluation risk — the Ukrainian Hryvnia (UAH) has depreciated significantly since 2022; companies operating in UAH while contracting or reporting in EUR or USD face material exchange rate exposure.
Political risk and corruption — Ukraine ranks 35/100 on the Transparency International Corruption Perceptions Index (CPI 2024); contract enforcement challenges and administrative burden persist. Source: transparency.org.
Infrastructure damage — power grid attacks have caused rolling blackouts particularly during winter; logistics infrastructure is damaged in some regions; internet and communications are periodically disrupted in conflict-affected areas.
Talent mobilization — Ukrainian men aged 18–60 are subject to military service obligations; this affects the available local talent pool, particularly for technical and engineering roles.
Structural Comparison
TOV — Товариство з обмеженою відповідальністю (Private Limited Liability Company)
AT — Акціонерне Товариство (Joint-Stock Company)
Branch of a Foreign Company (Filiya)
Representative Office (Predstavnytstvo)
Incorporation Process
The process is strictly digital. Each stage builds on the previous one.
Free consultation with XBandGlobal specialists to assess risk profile, confirm entity type (standard TOV, simplified tax Group 3 eligibility, or industrial park route), identify the safest operational region, and discuss current martial law implications for your specific industry and location.
Name availability check via the Unified State Register (drsu.gov.ua). Name search is available online through Diia.Business (business.diia.gov.ua) with instant results.
Prepare the company charter (Статут / Statut). Since Ukraine's 2018 simplification, notarisation is NOT required for TOV charters — self-signed documents are legally accepted. XBandGlobal's Ukraine partner prepares a compliant charter template.
Submit the registration application through the Diia digital government portal (diia.gov.ua), through a notary, or through a local Administrative Service Centre (ASC/CNAP). Submit the charter, founder information, and registered address in Ukraine.
State Registrar processes the application and issues the company registration confirmation with the Unified State Register Number (ЄДРПОУ code) — typically same day to 1 business day. No physical visit required for registration itself.
What you'll pay
Cost Architecture
Government Fees
Annual Ongoing
Professional Services
Ukraine's government fees are uniquely zero — no country in Europe offers cheaper formal company registration. The real cost is professional services: legal and accounting advice is not optional under martial law given constantly evolving regulatory modifications. Under NBU currency controls, dividend repatriation to foreign shareholders is currently restricted — this is the most significant financial constraint for profit-extraction planning. Budget for ongoing legal counsel (USD 500–2,000/month) alongside accounting services.
Still unsure about costs?
These are estimates — your actual cost depends on your structure
Every Ukraine setup is different. A 15-minute call with one of our specialists will give you a personalised cost breakdown — completely free.
Fintech & Banking
Can non-residents open accounts without visiting? NO.
Banking options for non-resident founders in Ukraine. Remote account opening availability varies by institution.
| Institution | Type | Ease for Non-Residents | Notes |
|---|---|---|---|
| PrivatBank | State-owned (nationalised 2016) | Low (Visit Required) | Largest bank in Ukraine by total assets and client base. Nationalised in 2016. Advanced mobile banking (Privat24). Extensive ATM and branch network outside conflict zones. Limited remote onboarding for corporate accounts. |
| Oschadbank | State-owned | Low (Visit Required) | Second largest bank in Ukraine. Widely accessible network across non-occupied regions. Standard in-person KYC required for corporate accounts. Good for companies needing broad regional branch access. |
| Ukrsibbank | BNP Paribas (France) subsidiary | Low (Visit Required) | French BNP Paribas parent. Good for international companies needing standard European banking infrastructure. Strong trade finance and foreign currency account services. In-person required for corporate account opening. |
| Raiffeisen Bank Ukraine | Raiffeisen Bank International (Austria) subsidiary | Low (Visit Required) | Austrian parent with Central and Eastern European banking expertise. Good for international companies operating across the region. Standard corporate KYC documentation required. In-person account opening. |
| OTP Bank Ukraine | OTP Group (Hungary) subsidiary | Low (Visit Required) | Hungarian parent; good regional banking capabilities. Suitable for companies with broader Central/Eastern European operations. In-person corporate account opening required. |
| Citibank Ukraine | Citigroup (USA) subsidiary | Low (Visit Required) | Best for large international corporate clients needing USD/global transaction capabilities and existing Citi banking relationships. Limited SME services. Strict KYC requirements. In-person required. |
| Kredit Dnipro | Private Ukrainian bank | Low (Visit Required) | Smaller private Ukrainian bank. More flexible onboarding criteria than larger state or international banks. Limited remote onboarding possible for some profiles. Useful for companies that face delays at larger institutions. |
Frequently Asked
Speak with a Ukraine specialist
Get personalised guidance on entity types, costs, timelines and banking — free, no commitment needed.