25 August 2026
Establish a Subsidiary in Ukraine
Our company formation agents in Ukraine outline the main steps needed to open a subsidiary in the country. Contact us for more details and assistance.
Foreign companies can establish a subsidiary in Ukraine to expand their operations to this country. Our team offers complete subsidiary setup solutions.
| Quick Facts | |
|---|---|
| Applicable legislation (home country/foreign country) | Ukrainian laws |
| Best Used For | Performing much of the same activities as the foreign company, however, also adding different business purposes if needed. |
Minimum share capital | No minimum capital for the LLC |
| Time frame for the incorporation | 1 week |
| Management (Local/Foreign) | Local |
| Legal representative required | Yes (a director) |
| Local bank account | Yes |
| Independence from the parent company | Fully independent |
| Liability of the parent company | Liable only to the extent of its shareholding in the Ukrainian legal entity operating as a subsidiary. |
| Corporate tax rate | 18% |
| Possibility of hiring local staff (YES/NO) | Yes |
What is a subsidiary?
A subsidiary in Ukraine is a locally incorporated business wholly or partially owned (through shareholding) by another foreign company.
To open a subsidiary in 2026, an interested parent company will follow the steps for company formation in Ukraine.
Can any foreign company open a subsidiary in Ukraine?
Yes. The foreign company acting as parent to the subsidiary can have full foreign ownership (i.e., can hold the entire shares of the Ukrainian legal entity acting as its subsidiary). Our team can give you more details on the shareholding structure.
What is the foreign company’s relationship with the subsidiary?
The foreign company controls its Ukrainian subsidiary through majority shareholding (i.e., it owns 50% or more of its shares). However, the subsidiary is legally independent from its parent company, unlike a branch.
The subsidiary:
- Is a separate legal entity from the parent company;
- Can enter into commercial agreements in its own name;
- Can sue and be sued;
- Is subject to the full scope of Ukrainian laws in terms of accounting, taxation, and reporting.
What activities does the subsidiary engage in?
An advantage for companies that establish a subsidiary in Ukraine is that the locally registered legal entity can operate in the same industry as its parent company, or in a different one.
What business form must I select when opening a Ukrainian subsidiary?
The limited liability company and the joint-stock company are commonly used, with the former being preferred for its less complex reporting requirements.
What are the main steps for Ukrainian subsidiary incorporation?
Below, our team of company formation agents lists the main steps that are required when opening a corporation in the country.
- The process of incorporation of a subsidiary in Ukraine starts with the signing of the charter and the founder's decision (signatures notarised, or signed electronically via Diia) to open a subsidiary.
- After registration, a bank account is opened and the share capital is paid in (within six months by default). No bank certificate is required for registration. State registration of a legal entity is free of charge.
- The registration documents are filed with a state registrar (administrative services centre or notary) or online via Diia, for entry in the Unified State Register of Legal Entities, Individual Entrepreneurs and Public Organisations.
- The subsidiary incorporated in Ukraine must also pay taxes and VAT, and tax registration with the State Tax Service is made automatically upon state registration (VAT registration is separate).
Once it is registered, the subsidiary will need to apply for special permits and licenses, according to the particular industry in which it operates. For example is the case of pharmaceutical companies that need to obtain a license from the State Service of Ukraine on Medicines and Drugs Control.
What are the minimum requirements for incorporation?
The subsidiary must:
- Have a registered address in Ukraine;
- Appoint one shareholder and one director;
- Have a corporate bank account in Ukraine.
Nominee director appointment is used in the case of companies that must be operational from day one. This means that the company has a trusted temporary Ukrainian nominee director until the appointed foreign one can travel to Ukraine and handle the formalities.
How much does it cost to open a subsidiary in Ukraine?
Investors who incorporate a subsidiary with the help of our team generally pay a one-time fee of 1,050 USD for company registration. When working with us, other costs can include:
- A nominal director fee of USD 1,000 (one-time payment for the duration of the nominee’s appointment, which may be temporary);
- Accounting fees of approximately USD 150 per month.
Contact us if you want to set up a subsidiary in Ukraine in 2026 and are in need of a local partner.