Legal & Financial
Even though Ukraine has been rising in the ranks of the Doing Business survey over the course of the past couple of years, it is still a very unique country in terms of incorporation laws, banking and currency regulations, income taxation, mandatory pension withholding, VAT taxation etc.
More often then not, companies which require our assistance, are small to medium size companies planning on opening a 10 -20 person office in Ukraine to perform some sort of development or support function. Since this Ukrainian organizational unit will not be directly involved in revenue producing activity, it will simply carry a certain expense to the mother company located abroad.
In such scenarios we highly recommend not dealing and setting up a legal entity in Ukraine, and simply running all of the accounting functions from the home office. The problem here for many of our clients is the fact that most of the transactions in Ukraine are done in cash, vs. bank transfer or credit card transaction. Such common things like salaries, office rent, utilities, office supplies, short term accommodation for staff, meals and entertainment etc. are typically paid for in cash in UAH (local currency). Tracking of these expenses becomes very tricky, and difficult to substantiate in case of tax audit in the home country.
We do offer additional service to take care of this pain. Your accounting receives single invoice for the cost of your Ukrainian operations from a separate entity (our LLC) with a detailed itemized expense tracker so your accounting can keep an eye and cross check your spending. We add 10% fee each month to your gross spending to reflect cover our costs incurred (currency exchange, cash conversion, processing costs, profit margin) and your accounting simply pays that bill once a month in a single transaction to a third party company.
Alternatively if you do not want to use our services, we can conduct a detailed consultation for you to acquaint you with most commonly asked Q & A at a rate of $100 per hour