Category Corporate Law

In modern Ukraine, corporate disputes are not just legal disagreements, but real battles for control over assets that can paralyze or even destroy a company. Changes in legislation, in particular the new Law of Ukraine “On Joint-Stock Companies”, and the…

Key points in brief A sole proprietorship (FOP) is registered quickly and free of charge, and is usually the simplest way to start a small business. An LLC (TOV) is a separate legal entity with limited liability of its members, suited to partnerships and scaling up. Key decisions before registration: the legal form, types of activity (KVED codes) and the tax system. Mistakes at the start (the wrong KVED code, an unsuitable tax system, a carelessly drafted LLC charter) later cost time and money. A lawyer helps you choose the optimal form and avoid common mistakes. Registering a business is the stage where it matters not just to “file the documents” but to make the right choice from the start. The form (sole proprietorship or LLC), the types of activity and the tax system determine how convenient and profitable your work will be later on. In this article we explain the main things worth knowing before registration. This material is for information only. Conditions and requirements may change, so it is worth checking the current details for your situation. Sole proprietorship or LLC: what is the difference A sole proprietorship (FOP) is the entrepreneurial activity of an individual. Advantages: simple and fast registration, less reporting, free use of income. The downside is that the entrepreneur is liable for obligations with their own property. An LLC (limited liability company) is a separate legal entity. Members are liable within the limits of their contributions, which reduces personal risk. An LLC is more convenient for partnership, attracting investment and scaling up, but it requires more documents and reporting. The choice depends on the scale, the number of partners, growth plans and the level of risk. There is no universally “better” form, only the one that suits you. What to decide before registration The […]