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Eastern European nation with strong IT outsourcing sector
Region
EASTERN EUROPE
Corporate Tax
18%
Setup Time
2 weeks
Currency
UAH
Ukraine, Europe's largest country by area, has developed significant tech talent and outsourcing industries despite ongoing conflict challenges. The country's company registration framework supports business setup for those with specific expertise interests.
With a population of approximately 37 million (pre-conflict), Ukraine offered diverse living with significant tech hubs in Kyiv, Lviv, and others. Ukrainian is official, with Russian and English in tech. Conflict has significantly affected conditions since 2022.
Healthcare availability is affected by current conditions. Safety is seriously impacted by ongoing conflict. Cost of living is very low where conditions permit.
The tech community has shown remarkable resilience with remote work adaptation.
Corporate tax rate stands at 18%. Personal income tax is flat at 18% plus military levy. VAT applies at 20%. The simplified tax system for IT was popular.
The Ukrainian hryvnia has experienced wartime pressures. The IT sector developed significantly before conflict. Various incentives supported tech development including Diia.City.
Company registration is available through the Unified State Register. Limited liability companies (TOV) are standard. Foreign ownership is permitted.
Company formation traditionally took approximately 1-2 weeks. Current conditions affect all processes.
Ukraine developed crypto-friendly legislation before the conflict, including legal recognition of virtual assets. Implementation has been affected by current conditions.
The Commission for Regulation of Gambling and Lotteries was established with licensing frameworks before current conflict affected operations.
Ongoing conflict creates fundamental operational challenges. Many tech workers have relocated or work remotely for Ukrainian companies. Long-term reconstruction may create opportunities.
The situation requires careful assessment of current conditions for any business activity.
Ukraine may suit IT partnerships with relocated talent and those with humanitarian or reconstruction focus for their business setup.
Local: TOV
Local: AT
Local: Branch
| Corporate Tax Rate | 18% |
| Personal Income Tax Rate | 18% |
| VAT / Sales Tax | 20% |
| Capital Gains Tax | 18% |
| Withholding Tax | 15% |
| Reduced Corporate Tax Available | Yes |
| Non-Resident Withholding Exempt | No |
| Tax Treaty Network | Yes |
| Banking Access | MEDIUM |
| Financial Privacy | LOW |
| Currency Controls | STRICT |
| Local Bank Account Required | No |
| Non-Resident Bank Account Allowed | Yes |
| Physical Presence for Banking | Yes |
| Banks Restrictive (High Risk) | Yes |
| AML Officer Required | Yes |
| MLRO Required | Yes |
| Compliance Officer Required | No |
| Data Protection Officer Required | No |
| Bookkeeping Frequency | Annual |
| Local Bookkeeping Required | Yes |
| Mandatory Audit | No |
| License Required | Yes |
| Local Director Required | No |
| Local AML Director Required | Yes |
| Local Legal Address Required | Yes |
| Local Physical Office Required | No |
| Required Share Capital | $0 |
| Capital Maintained in Account | No |
| Compliance Program Required | Yes |
| Travel Rule Compliance | FATF Travel Rule (framework pending full implementation) |
| Business Plan Required | 3-year business plan required demonstrating compliance capability |
| Personnel Required | CEO, AML Officer, qualified compliance specialists required to pass fit and proper test |
| Insurance Required | No |
| Remote Incorporation Possible | Yes |
| 100% Foreign Ownership | Yes |
| Min. Shareholders | 1 |
| Min. Directors | 1 |
| Shareholder/Director Same Person | Yes |
| Registry Public | Yes |
| Registry Access | Via NSSMC register once licensing regime becomes operational |
| Renewal Period | Annual |
| Accounting Filing Required | Yes |
| Accounting Filing Frequency | Annual |
| Financial Statement Required | Yes |
| Financial Statement Frequency | Annual |
| Accounting Audit Mandatory | Yes |
| Compliance Audit Mandatory | No |
| Technical Audit Mandatory | No |
| Corporate Income Tax Applicable | Yes |
| Dividend Tax Applicable | Yes |
| Capital Gains Tax Applicable | Yes |
| Territorial Tax Regime | No |
| VAT Applicable | Yes |
| Regulators | National Securities and Stock Market Commission (NSSMC), National Bank of Ukraine (NBU) for currency-backed virtual assets |
| Licensing Fee | $117,000 |
| Licensing Fee Details | Estimated permit fees for residents: storage/administration ~UAH 117,000 (€2,850); exchange ~UAH 74,000 (€1,800); transfer ~UAH 74,000 (€1,800); intermediary services ~UAH 57,500 (€1,400). Non-resident fees approximately 5x higher |
| Permitted Business Models | Exchange, Custody, Transfer services, Intermediary services (once Law No. 2074-IX enters into force) |
| Permitted Activities | Virtual asset exchange (crypto-to-fiat, crypto-to-crypto), custody and administration, transfer services |
| Restricted Activities | Virtual assets cannot be used as legal tender/payment method; privacy coins treatment unclear |
| Cross-Border Service Allowed | Yes |
| Physical Inspection Required | No |
| Derivatives Allowed | No |
| RWA Tokenization Allowed | No |
| App Store Listing Allowed | Yes |
| Crypto Custody Allowed | Yes |
| License Required | Yes |
| Local Director Required | No |
| Local AML Director Required | Yes |
| Local Legal Address Required | Yes |
| Local Physical Office Required | Yes |
| Required Share Capital | $30,000,000 |
| Capital Maintained in Account | Yes |
| Compliance Program Required | Yes |
| Travel Rule Compliance | N/A for gambling |
| Business Plan Required | Detailed business plan required including software certification, AML/KYC procedures, responsible gambling measures |
| Personnel Required | CEO, CFO, AML Officer, key personnel must pass background checks and have no criminal record |
| Insurance Required | No |
| Remote Incorporation Possible | No |
| 100% Foreign Ownership | Yes |
| Min. Shareholders | 1 |
| Min. Directors | 1 |
| Shareholder/Director Same Person | Yes |
| Registry Public | Yes |
| Registry Access | PlayCity state agency maintains register of licensed operators |
| Renewal Period | 5 years (online); 7 years (land-based casino) |
| Accounting Filing Required | Yes |
| Accounting Filing Frequency | Annual |
| Financial Statement Required | Yes |
| Financial Statement Frequency | Annual |
| Accounting Audit Mandatory | Yes |
| Compliance Audit Mandatory | Yes |
| Technical Audit Mandatory | Yes |
| Corporate Income Tax Applicable | Yes |
| Dividend Tax Applicable | Yes |
| Capital Gains Tax Applicable | Yes |
| Territorial Tax Regime | No |
| VAT Applicable | No |
| Regulators | PlayCity - State Agency for Regulation of Gambling and Lotteries (replaced KRAIL in April 2025) |
| Licensing Fee | $37,800,000 |
| Licensing Fee Details | Online casino: UAH 37.8 million (~€920,000); Online betting: UAH 9 million (~€220,000); Online poker: separate license required; Land-based casino Kyiv: UAH 330 million (~€8 million); Bank guarantee/deposit: UAH 43.2 million (~€1 million) required |
| Permitted Business Models | B2C online gambling, B2C land-based gambling, B2B software providers (separate license) |
| Permitted Activities | Online casino, online poker, sports betting, slot machine halls, land-based casinos (in 4-5 star hotels) |
| Restricted Activities | Cryptocurrency payments prohibited; advertising restrictions apply; minimum age 21 |
| Cross-Border Service Allowed | Yes |
| Physical Inspection Required | Yes |
| Player Fund Segregation | Yes |
| B2B/B2C Separate Requirements | Yes |
| License Required | Yes |
| Local Director Required | No |
| Local AML Director Required | Yes |
| Local Legal Address Required | Yes |
| Local Physical Office Required | Yes |
| Capital Maintained in Account | Yes |
| Compliance Program Required | Yes |
| Travel Rule Compliance | FATF compliant |
| Business Plan Required | 3-year business plan required demonstrating economic viability and compliance capacity |
| Personnel Required | CEO, CFO, Compliance Officer, AML Officer - all must meet professional suitability requirements and have relevant financial sector experience |
| Insurance Required | No |
| Remote Incorporation Possible | No |
| 100% Foreign Ownership | Yes |
| Min. Shareholders | 1 |
| Min. Directors | 1 |
| Shareholder/Director Same Person | Yes |
| Registry Public | Yes |
| Registry Access | NBU State Register of Financial Institutions |
| Renewal Period | Annual supervision, license validity varies by type |
| Accounting Filing Required | Yes |
| Accounting Filing Frequency | Annual |
| Financial Statement Required | Yes |
| Financial Statement Frequency | Annual |
| Accounting Audit Mandatory | Yes |
| Compliance Audit Mandatory | Yes |
| Technical Audit Mandatory | No |
| Corporate Income Tax Applicable | Yes |
| Dividend Tax Applicable | Yes |
| Capital Gains Tax Applicable | Yes |
| Territorial Tax Regime | No |
| VAT Applicable | Yes |
| Regulators | National Bank of Ukraine (NBU) for banking, financial companies, payment services, currency exchange; National Securities and Stock Market Commission (NSSMC) for securities and investment services |
| Licensing Fee Details | Banking license fee determined by NBU; financial services company fees vary by license type. Detailed fee schedules available from NBU. Currency exchange and payment services require NBU authorization. |
| Permitted Business Models | Banking, financial company, leasing, factoring, payment services provider, currency exchange, insurance |
| Permitted Activities | Lending, factoring, financial leasing, payment services, currency exchange, guarantees provision |
| Restricted Activities | Full banking activities require banking license; deposit-taking restricted to licensed banks |
| Cross-Border Service Allowed | Yes |
| Physical Inspection Required | Yes |