Registration of branches and representative offices of foreign companies in Ukraine: types and main problems

In order to increase the number of potential clients and to implement the activities of a foreign company in Ukraine, its registration is a prerequisite. After passing this procedure, a representative office will be able to legally protect the interests of its company and conduct business in the country. The only condition for effective work is the correct and timely completion of this legal procedure.

The main points of the procedure in Ukraine

The Ukrainian legal framework regulates all aspects of such a procedure as registration of branches and representative offices of foreign companies. There is a whole list of regulations that define the registration procedure.

It is worth noting that, according to the law, the definitions of a representative office and a branch are treated almost identically. The only difference is the fact that the meaning of branch is applied to objects that conduct business activities in the country.

There are two types of registration of representative offices of foreign companies:

• with the right to conduct business;
• without the possibility of conducting business.
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An important point is the fact that even after registration in Ukraine, a representative office is not an independent legal entity. Its work is carried out directly on behalf of a foreign company.

What problems can be encountered when registering a foreign representative office?

It is almost impossible to register on your own without having certain knowledge. This is due to the fact that there are a number of nuances, ignorance of which can lead to mistakes:

• registration terms, which, depending on the conditions, can be 1-60 days;
• registration of a non-resident representative office with the State Tax Service;
• payment of the registration service and repayment of the administrative fee;

Also, do not forget about such a classic problem of many government agencies and the services they provide, as bureaucratic red tape. The presence of unwritten requirements of the Ministry of Economy, which registers representative offices of foreign companies, delays the registration process, creating new conditions. At the same time, this institution is only a registrar that monitors compliance with registration requirements, but has no authority to create new ones.

Thus, in order to correctly and quickly execute all the necessary documentation ensuring the legality of a foreign company's activities in Ukraine, it would be a rational decision to use the services of specialists from law firms that register such entities.