Tap into Ukraine’s resilience and innovation, a country eager for growth.
Despite recent turmoil, Ukraine is a significant emerging market in Europe. The workforce here is highly skilled, yet the average salary is lower than in other European countries. The low raw material and manufacturing costs here can mean higher profitability for your business. Moreover, the Ukrainian government is eagerly offering incentives to stimulate business growth, particularly in the energy, infrastructure, and technology sectors.
While Ukraine’s company registration process and tax structure are straightforward, many companies hesitate to enter and grow in this country. The ongoing geopolitical situation has impacted business operations, regulatory environments, and economic stability. As of 2025, Ukraine has been at war for over three years, which has disrupted supply chains, financial systems, and investor confidence.
Foreign businesses must monitor developments closely, assess risks carefully, and explore flexible, low-risk options such as an Employer of Record (EOR) for growing and expanding their teams here.
The benefits of expanding your business into Ukraine
Ukraine has demonstrated remarkable economic resilience over the past few years. IT, agriculture, and manufacturing sectors continue to thrive, supported by a highly skilled workforce and competitive operational costs.
Additionally, international financial aid and economic recovery programs have bolstered business confidence, making Ukraine a strategic location for companies willing to navigate the associated risks.
Key advantages of doing business in Ukraine:
- Logistical advantages: Under the Deep and Comprehensive Free Trade Agreement (DCFTA), Ukraine provides access to major trade routes, including the EU market.
- Skilled workforce: The country is known for its strong outsourcing and R&D capabilities, particularly in software development and cybersecurity. It remains a global leader in IT and engineering talent, with a high number of STEM graduates.
- Cost advantages: Ukraine offers lower labor and operational costs than Western Europe, making it attractive for cost-conscious businesses.
- Favorable tax policies: As of 2025, Ukraine’s standard corporate income tax (CIT) rate is 18% (with some exceptions).
- Government incentives: Ukraine has several initiatives to attract foreign investment and business growth as the nation rebuilds itself.
Additionally, the European Commission and EIB investments could enhance Ukraine’s innovation, reconstruction, and business growth. However, businesses should consider potential risks related to currency fluctuations and supply chain disruptions due to the ongoing war, potential peace treaties, and the ripple effect of war.
Instead of establishing a legal entity here, your business can test the waters or expand more flexibly here with an Employer of Record (EOR).
What is the difference between standard company registration and expanding through an EOR?
When expanding into a new country, businesses typically have two choices: traditional company registration or partnering with an Employer of Record (EOR).
Below is a comparison of these two approaches:
|
Aspect |
Company registration |
Employer of Record (EOR) |
|
Purpose |
Establish a legal entity for long-term operations |
Test new markets or manage remote teams |
|
Control |
Full control over operations |
Limited control (EOR handles HR/admin) |
|
Cost |
High initial investment (registration, legal fees) |
Predictable, bundled service fee |
|
Compliance |
Full responsibility for legal and tax compliance |
EOR ensures compliance with Ukrainian laws |
|
Setup time |
Several months |
A few weeks |
|
Scalability |
Complex and time-consuming |
Quick and flexible workforce adjustments |
Company registration is a viable option if your business is confident about long-term operations. However, an EOR is more practical if you want a more flexible and low-risk entry into Ukraine.
How EOR simplifies Ukraine company registration
If you’re looking for a quick way to enter the Ukrainian market while lowering your risk exposure, partnering with an Employer of Record (EOR) is ideal.
Benefits of choosing an EOR:
- Rapid market entry: Skip the registration process and start operations within weeks.
- Compliance management: The EOR is responsible for staying up-to-date and complying with labor laws, payroll taxes in Ukraine, and contract regulations, which reduces your business’s legal risks.
- Cost efficiency: An EOR helps you avoid company formation costs, corporate bank setup fees, notary expenses, and many legal and regulatory fees.
- Streamlined payroll: You automate many processes and efficiently manage salaries, benefits, and global tax filings on a single platform.
- Focus on core business: You do not need to set up an administrative office or hire expensive legal teams to oversee your Ukrainian workforce.
- Easy to exit: You can terminate operations anytime without the legal, financial, and administrative burdens of dissolving a registered entity.
However, if your company needs to sell goods and services in Ukraine or is planning significant long-term expansion, a company registration may be essential. Let’s explore the steps.
A step-by-step guide to registering a company in Ukraine
Here is a clear roadmap for company registration in Ukraine.
Step 1: Define the legal structure
Choosing the right legal structure is crucial. Ukraine offers several options depending on your company’s objectives and the level of liability you are comfortable with:
- Limited liability company (LLC) (TOV): The most common structure with limited liability for shareholders, offering flexibility and lower risks.
- Joint-stock company (JSC): Suitable for larger enterprises looking to issue shares and attract investors.
- Representative office: Enables foreign companies to establish a presence in Ukraine without direct commercial activities.
- Sole Proprietorship: For individuals intending to operate small businesses without establishing a separate legal entity.
Step 2: Submit incorporation documents
Once you have selected the legal structure, the next step is to file incorporation documents. The process involves submitting an application and founding documents to the Ukrainian Companies Registrar.
You must disclose the Ultimate Beneficial Owners (UBOs or controllers who are not residents of Ukraine) during registration.
Step 3: Open a corporate bank account
Businesses must open a bank account in Ukraine to conduct financial transactions. This step is essential for handling payroll, business expenses, and client payments.
Step 4: Obtain a tax identification number (TIN)
Registering with the Ukrainian tax authorities and obtaining a TIN is mandatory for legal operations. This number is essential for tax filings and compliance.
Additionally your business must also register for Value Added Tax (VAT), if applicable. Depending on the business activity you may also require additional licenses or permits.
The company registration process typically takes from 2 to 12 days, depending on specific procedures such as VAT registration and can be further simplified through digital services such as ‘Diia‘. This mobile application helps you register your business and access other government services online.
Completing the registration process is just the beginning, however. Beyond incorporation, your business will also incur the costs of maintaining compliance, taxation, and operational expenses. Let’s take a closer look at these financial commitments.
The real cost of registering a business in Ukraine
Registering a company involves several costs that businesses must consider when budgeting for expansion. Below is an overview of common expenses:
- Business name registration fee: $20–$50
- State registration fee: $25–$680 (varies by company size and charter capital)
- Notary and legal services: Costs can range from a few hundred to several thousand dollars, depending on the complexity of the case.
- Bank account setup: Fees depend on the chosen bank’s specific rules.
- Accounting and annual compliance: Annual costs can range from $500 to $1,500, depending on the company’s size and complexity.
However, you can save many of these costs and long-term investments by partnering with an EOR.
Cost savings with an EOR
With EORs you eliminate the cost of registration and legal fees. You can start employing and paying Ukrainian employees and build a robust workforce here, without setting up a local entity. The EOR takes the onus of hiring, payroll and tax administration and compliance on your behalf.
Below is a cost comparison between traditional company registration and using an EOR.
|
Cost category |
Company registration (USD) |
EOR with Multiplier (USD) |
|
Setup fees |
Setup costs can range between $1,000–$3,000 , including state registration fees, legal fees and notary services. |
$0 (no cost of registration, legal expertise is covered in your monthly subscription) |
|
Legal documentation |
$500–$1,500 (this depends on business complexity) |
Included in one-time fee |
|
Payroll & compliance |
$300–$500/month on accounting and compliance management |
Included in one-time fee |
|
Ongoing maintenance |
$1,000/year (includes accounting, auditing and compliance) |
Included in one-time fee |
|
Time investment |
3–6 months |
2–4 weeks |
While the provided cost comparison offers a general overview, actual expenses may vary based on factors such as company size, industry, and specific service agreements.
Engaging with a reputable EOR like Multiplier consolidates costs into a predictable service fee. More importantly, it helps you stay agile in Ukraine’s evolving economic, political, and regulatory landscape.
Streamline your Ukraine expansion with Multiplier
Expanding into Ukraine presents both opportunities and uncertainties. While the country continues to rebuild and attract investment, navigating regulatory changes and operational risks is challenging for foreign businesses.
With Multiplier’s EOR solution, you hire employees quickly, stay compliant, and manage payroll—without setting up a local entity. This means you can test the market, scale when needed, and avoid long-term legal and financial commitments.
Why choose Multiplier?
- No legal headaches. Avoid entity registration, tax filings, and complex compliance processes.
- Flexible and low-risk. Expand your workforce without being locked into permanent commitments.
- Local hiring expertise: Generate compliant employment contracts in minutes to quickly onboard local talent in Ukraine.
- Effortless payroll management: Pay employees accurately in full compliance with Ukrainian regulations.
- Attractive benefits packages: Offer localized, competitive benefits to attract top talent.
- Reliable support: You navigate Ukraine’s business environment with specialists who understand the landscape.
Setting up a company in Ukraine can seem daunting, but with an EOR, you needn’t hesitate anymore. Explore business expansion in Ukraine, without the risks and delays.
Book a demo today. See how Multiplier can help you expand here—efficiently, compliantly, and safely.
