The business landscape in Ukraine is diverse and growing, evidencing a thriving entrepreneurial spirit amongst its population. This can be experienced fully through the wide array of types of companies that exist in the country, from small family-owned businesses to large corporations. Here, we take a closer look at the types of companies in Ukraine and highlight the roles they play in the country’s economy.
Private Limited Companies (LLC or TOV in Ukraine)
The Private Limited Company, or LLC, is one of the most common types of companies in Ukraine. Known locally as a TOV (Tovarystvo z Obmezhenoyu Vіdpovіdalnіstyu), these companies have a minimum capital requirement of approximately €1. Companies are owned by shareholders, however, their liability is limited to the extent of their share in the business. This structure is commonly chosen by single entrepreneurs and small businesses.
Public Limited Companies (JSC or PAT in Ukraine)
Public Limited Companies in Ukraine, also known as PAT (Publichne Aktsionerne Tovarystvo), resemble the western equivalent of a joint-stock company. PATs need to have a minimum of two shareholders and must meet a capital requirement of around €125,000. These companies are often larger, have a significant number of employees, and can sell shares to the public in order to raise capital.
Foreign Investments
Foreign investments are a significant part of Ukraine’s business sector. Foreign companies have the opportunity to establish subsidiaries and branches in Ukraine, with the former maintaining the legal status of an independent Ukrainian company. This has been made possible by Ukraine’s open policies towards foreign investments.
Representative Offices
Representative offices are how some foreign companies choose to operate in Ukraine. These are seen as extensions of the parent company and are not independent legal entities. They are usually involved in promotional activities or function as liaisons between the parent company and clients in Ukraine.
Partnerships
Partnerships in Ukraine come in two forms – limited partnerships (Komanditne Tovarystvo or KT) and full partnerships (Povne Tovarystvo or PT). Partnerships are formed between two or more individuals who have the intent to conduct joint business activities. In a full partnership, each partner bears equal liability for the company’s obligations, whilst in a limited partnership, at least one partner has unlimited liability, and the other partner’s liability is restricted to his contribution to the capital.
State and Municipal Enterprises
Ukraine still has state-owned or municipal enterprises operating in various sectors. These public businesses typically survive in industries significant to the state’s interests, including energy, aerospace, and defense.
Understanding the types of companies in Ukraine is important for anyone considering making a business investment or simply interested in learning more about Ukraine’s economic landscape. With its strategic location, rich natural and human resources, and commitment to implementing economic reforms, Ukraine offers fertile ground for doing business.
Here are some suggested related links:
UkraineInvest
Government Portal of Ukraine
Ministry of Economic Development and Trade of Ukraine
American Chamber of Commerce in Ukraine
Ukrainian Chamber of Commerce and Industry
EU4Business
World Bank