Branch of a foreign/Ukrainian company
Opening a branch is a great opportunity to expand the business and improve its organizational structure. In accordance with the current Ukrainian legislation, the branch is not a separate legal entity. This is a separate division of a legal entity that is located outside its location and performs all or some of its functions. The branch operates on the basis of a regulation approved by the legal entity that created it (the clauses of the provision can be detailed by orders), endowed with the property of this person and managed by the head appointed by this person on the basis of a power of attorney. In this regard, a branch of a foreign/Ukrainian company has a number of advantages, such as:
- the ability of the parent company to directly control the activities and carry out direct financing of the branch;
- use of the "authority" of the parent company in dealing with contractors;
- the possibility of organizing production and / or marketing in the country (region);
- approaching sources of raw materials, fuel, customers, partners.
Despite the fact that the Law “On the Registration of Legal Entities and Individual Entrepreneurs” does not separate such structures as a branch and a representative office, calling them “separate subdivisions of legal entities”, a branch still has a greater functional significance than a representative office, since it can not only represent the interests of the parent company, and implement its goals and objectives in the field. The parent company must decide whether the branch will maintain a separate balance sheet, information from which is to be included in the parent company’s balance sheet and related financial statements. This information must be included in the Branch Regulations.
In addition to entering statements about a branch in the Unified State Register of Legal Entities, Individual Entrepreneurs and Public Formations (hereinafter referred to as the Register), its opening must also be agreed with local authorities (district / district council in the city), and also registered with the authorities State Fiscal Service (hereinafter - SFS) and notify the regulatory authorities at the location of both the parent company and the branch. "Finance Business Service" provides services for the opening and registration of branches of both Ukrainian and foreign companies in the state bodies of Ukraine. Our experts will help determine the organizational and legal status of a separate division of the company, provide advice, prepare documents and carry out all the necessary procedures, namely:
- Advising on entering the local market and opening a branch as one of the forms of company expansion;
- Providing recommendations on the preparation of documents in compliance with all legal requirements;
- Preparation of drafts of necessary documents;
- Translation and apostille of documents (if necessary);
- Formation and verification of the completeness of the package of necessary documents;
- Submission of documents to the relevant authorities (local council, state registrar, state statistics bodies, territorial bodies of the State Fiscal Service, etc.);
- Full legal support of the process;
- Opening a bank account;
- Production of a seal.
The client must provide:
- An extract from the Register (for foreign companies - an extract from the commercial, banking or judicial register of the country under an apostille) of the main management body of the parent company;
- Certificate of registration of the parent company (if any);
- Charter of the parent company;
- Photocopies of passports of the founders and directors of the parent company and the branch;
- Power of attorney to perform representative functions of the company;
- Branch lease agreement.
Upon completion of the registration process, the client will receive the following documents:
- The decision of the founders, or the body of the parent company authorized by them, to establish a branch and appoint its director;
- Regulations on the branch;
- Updated charter of the parent company;
- Power of attorney to perform the duties of a director;
- Order on the appointment of the director of the branch;
- Order on the accounting policy of the branch;
- Permission to make a seal for the branch;
- Agreement with a bank on opening an account;