Any successful business needs to expand and develop new areas for its activities. With its business expansion in other countries, many business structures need to open a representative office in their territory to:
- expand markets for their products and thus increase profits;
- acquire new useful contacts to promote their goods or services;
- Provide advisory support of offered goods, build and maintain their own dealer networks;
- lobby for the interestsof the company.
- pursue othergoals;
That is why the registration of a foreign representative office is widespread enough in Ukraine.
What is a foreign representative office in our country?
Opening of representative offices in Ukraine is the creation of the authorized person representing the interests of the subject (foreign) in its economic activities in the country, which has all powers for such actions.
Note that it is not a legal entity and cannot exercise any commercial activity. Registration of a representative office gives the possibility to act on behalf and in the name of a foreign subject of economic activities, and to perform its own functions, according to the existing Ukrainian legal system.
Registration of foreign representative offices allows:
- the opportunity to receive customs and tax exemptions;
- do without the creation of the authorized capital (since they are not legal persons);
- Do not issue work permits for their own foreign employees in the country of opening (meaning Ukraine).
Opening of a representative office of a foreign organization can be of two types:
- It is not designed to carry any type of commercial activity in the country;
- Itis created fordirectbusiness.
The opening of representative offices in Ukraine requires a specific set of documents:
- application for registration. It must be executed on a special form (corporate)of enterprise certified by its seal and the director’s signature;
- extract from the register (trade) at the place of registration of the main office of the organization. Registration of representative office may also be executed from a copy of this document, certified by a notary;
- recommendation from the banking institution, in which is the organization account is situated (its number must be indicated). For the registration of a foreign representative office was successful, the document must be an original, with notarized signatures of bank employees;
- Power of Attorney (original) with the list of powers of certain persons with signature of the director of the organization (which must be certified by a notary).
Registration of foreign representative office also includes in some cases the request for other additional documents required for the implementation of this procedure.
All documents must be translated into the official language (Ukraine) and then notarized.
Package of collected documents is submitted to the Ministry of Economic Development and Trade no later than six months from the date of their receipt. The consideration of the possibility of state registration is executed within 60 working days.
If the foreign representative office carries out the economic activities in the country, it must be registered with the local tax authority (in the locality where it is situated, for example, if it is situated in the capital, it is "supervised" by the supervisory authority, located in Kiev).