Advantages of foreign representative office in Ukraine

Foreign companies and corporations have the right to establish representative offices or representative branches in Ukraine. Ukrainian law prohibits, with the help of the office, to conduct economic activities. Representatives are used for the purpose of promoting goods and services. For example, the Toshiba representative office in Ukraine carries out advertising campaigns, monitoring the implementation of warranty and post-warranty services, conducting surveys and determining the needs of customers and negotiating and concluding agreements on behalf of the parent company. While the representative office has no right to directly import and/or sell goods. If you intend to conduct economic activities, registration of business in Ukraine is necessary. 

To incorporate a branch office documents are submitted to the Department of Ministry of Economic Development and Trade of Ukraine. For the legislation of Ukraine, the representative office is not a legal entity. But the identification code (registration number) is assigned at the time of state registration. The state registration fee is 2500 dollars. 

The following documents are needed for registration:

1. application;
2. extract from the trade register of the country where the company is registered;
3. power of attorney for the director of a branch;
4. document on ownership or lease of office;
5. certificate from the bank in which the parent company's account is opened;

The representative office must have a director who acts on behalf of the main company on the basis of a power of attorney. The representative branch has the right to have accounts both in hryvnia and multi-currency accounts. Ukrainian legislation provides foreign companies with the following advantages:

1. foreign employees are not required to obtain a work permit for work in the branch;
2. the right to duty-free import of equipment for the activity of a representative office;
3. not to pay taxes and compulsory levies on the wages of foreign employees who receive payment from the parent company;
4. have a bank account and make the necessary payments.

Of course the amount that can be received by representative office from the parent company is not limited. The employment of a foreign citizen in a branch is the basis for granting him a residence permit in Ukraine for a period not exceeding the contract line. 

Author of the article - Anatoliy Thor.