Representative Offices

According to the Article 5 of the Law of Ukraine "On Foreign Economic Activity" dated 16 April 1991, № 959-XII  foreign business entities engaged in foreign economic activity in Ukraine have the right to establish their Representative Offices in Ukraine.

The procedure of registration of Representative Offices of foreign business entities (hereinafter - the "Representative office") in Ukraine is regulated by the Regulations "On the registration of representative offices of foreign business entities in Ukraine, approved by the Ministry of Foreign Economic Relations and Trade of Ukraine" dated  18 January 1996 , № 30. According to these Regulations for the registration of Representative office in Ukraine without intention of economic activity in Ukraine the following documents should be submitted to the Ministry of Foreign Economic Relations and Trade of Ukraine (hereinafter - the "Ministry") Download

Ministry issues to foreign employees of Representative Office special employment cards that are valid at the whole territory of Ukraine within 3 years. Obtaining of such employment card is the ground for applying of the employee to specially authorized central authority of immigration and residence registration with application for a temporary residence permit.

In the case if the Representative Office performs economic activity at the territory of Ukraine it must be registered at local tax authority in the order prescribed by the central tax authority of Ukraine, and must acquire the status of a permanent Representative Office, in other words to be registered as income tax payer.

The concept of permanent Representative Office is defined by the Item 14.1.193., paragraph 14 of the Article 14 of the Tax Code of Ukraine as a permanent place of activity  through which non-resident of Ukraine performs business activity in Ukraine totally or partly.

According to the Item 133.3. of the Article 133 of the Tax Code of Ukraine permanent Representative Office started its business activity before registering at the tax authority is deemed to be the Representative Office evading taxes and its incomes are considered to be hidden from taxation.