Foreign companies can register a Ukrainian limited liability company (TOV), open a representative office, or start by employing people through an employer of record before committing to a company. This guide covers the choice of structure, registration, tax, banking, hiring and what martial law changes, with the 2026 figures.
1. Choose a structure
| Structure | What it is | Works best for |
|---|---|---|
| Limited liability company (TOV) | A Ukrainian company owned by one or more individuals or companies, with no minimum share capital | Trading, a local team and long-term operations |
| Representative office | A registered office of a foreign company that cannot carry out commercial activity in its own name | Marketing, liaison and research |
| Employer of record | A local employer employs your staff while you keep no Ukrainian entity | A first hire or a small team while you test the market |
If you mainly need people in Ukraine, starting with an employer of record lets you hire first and decide on a company later. See Employer of Record in Ukraine.
2. Register a TOV
- Choose a name, the registered address and the business activity codes (KVED)
- Prepare the founding decision and the charter, or use the model charter
- Foreign founders and directors need a Ukrainian tax number; foreign company documents are usually legalised or apostilled and translated
- Disclose the ultimate beneficial owners and the ownership structure
- File with a state registrar, a notary or through the Diia portal; registration with the tax authority follows automatically
- Choose the tax system, open a bank account and, if needed, register for VAT
Founders connected with the aggressor state face restrictions; check them before you start.
3. Understand the main taxes
| Tax | 2026 rate | Notes |
|---|---|---|
| Corporate income tax | 18% | The general system |
| Single tax, group 3 | 5% of income, or 3% plus VAT | Simplified system for smaller businesses with income up to UAH 10,091,049 a year; FOPs in group 3 also pay a 1% military levy |
| VAT | 20% | Registration is required once taxable supplies exceed UAH 1 million in 12 months |
| Diia.City | Special regime for IT companies | Option to pay 9% on distributed profit instead of 18% corporate income tax, and 5% personal income tax for specialists; conditions include at least nine specialists and average pay of at least EUR 1,200 a month |
4. Open a bank account and plan payments
Banks will check the company’s owners, directors and source of funds. While martial law applies, the National Bank of Ukraine keeps currency and cross-border payment rules that limit some transfers abroad; several limits were eased in 2026. Check the current rules before you plan dividends or payments to the parent company.
5. Hire employees
| Item | 2026 |
|---|---|
| Minimum wage | UAH 8,647 a month; UAH 52 an hour |
| Employer social contribution (ESV) | 22%, at least UAH 1,902.34 a month for a main job, on pay up to UAH 172,940 a month |
| Employee income tax and military levy | 18% and 5%, withheld by the employer |
| Hiring notice | Filed with the State Tax Service before the employee starts work |
| Pay frequency | At least twice a month |
Employers must also keep military registration records for employees liable for military service. If a contractor registered as a FOP works like an employee, the relationship can be treated as employment. Estimate cost with our Ukraine salary and employer cost calculator, and see Ukraine payroll once your company employs people.
6. Plan for martial law
- Martial law has been extended to 29 January 2027; public holidays are working days while it applies
- Paid annual leave can be limited to 24 days a year, and employment contracts can be suspended where the war makes work impossible
- A company recognised as critical can apply to reserve some employees from mobilisation if it meets the conditions
- Plan backup power, connectivity and remote work for your team
For the employment rules in detail, see our Ukraine employment law guide.
7. Hire before you set up
Setting up a company means a director, a registered address, a bank account, bookkeeping and tax filings. If you need one person or a small team first, an employer of record employs them under a Ukrainian contract and runs payroll, and you can move them to your own TOV later. Compare your options on our Ukraine page.
Talk to us
Tell us about the role and where the person will work, and we will suggest the route that fits. Use our contact form. We will respond within 24 hours.
Reviewed November 2026. General information, not legal or tax advice. Sources: the Civil Code, the Law on State Registration of Legal Entities, the Tax Code, the Law on Stimulating the Development of the Digital Economy (Diia.City), the Labour Code and the State Budget Law for 2026.