Registration of the LLC

A limited liability company (LLC) is one of the types of business entities, it is a legal entity, the main feature of which is that the authorized (composite) capital of this legal entity is divided into shares of different nominal values that belong to the members of the company. An LLC can be founded by one participant, that is, this participant will own 100% of the Company or several participants (at the same time, the legislation today does not limit the number of participants in an LLC, while a few years ago the maximum number of participants in an LLC was 100 people, after exceeding which the LLC had to change its format into a joint-stock company).
LLC is the most popular organizational and legal form for running business in Ukraine, since the members of the LLC are responsible for the actions of the LLC only within the limits of their contributions. This means that the property or funds that belong personally to the participant of the LLC and were not contributed as a share in the authorized capital of the LLC cannot be withdrawn from the participant to account for the debts of the LLC under any circumstances. Thus, the risks of the entrepreneurial activity of the participant of the LLC are limited only to the property or funds that he/she transferred directly to the authorized capital of the LLC. In contrast, another popular form of entrepreneurial activity – an Individual entrepreneur, is responsible for all property belonging to him/her, except for that which cannot be levied. And since economic activity is a risky activity, most entrepreneurs want to protect a certain part of their property from possible charges.

HOW TO REGISTER A LIMITED LIABILITY COMPANY
Today, the procedure for registering an LLC is simplified as much as possible by introducing the principle of a single window. LLC registration is carried out by both state registrars and private registrars who have received proper accreditation and access to the registers. As a general rule, if the registrar has no comments on the documents submitted for registration, the state registration of the LLC takes 24 hours. Of course, private registrars are able to provide an even faster LLC registration service for an additional fee.
The principle of "single window" when registering a limited liability company means that in order to register an LLC you need to apply to only one body - the state or private registrar with the necessary documents, all subsequent actions will be carried out by the registrar and the relevant bodies automatically without the participation of the applicant.
However, when determining the term of LLC registration, it is worth remembering 2 main points:
- state registration of an LLC is preceded by the preparation of documents for registration
- after the LLC is registered (the information has appeared in the publicly available register of legal entities, individual entrepreneurs and public organizations), it is possible to obtain documentary confirmation of the LLC's registration, that is, to receive an extract of the LLC's registration, no earlier than when the tax service and the pension fund will register the newly created organization. In practice, it usually takes 3-5 business days.

WHAT IS NECESSARY FOR THE REGISTRATION OF A LIMITED LIABILITY COMPANY

Required documents for the LLC registration are determined by legislation. At the same time, registrars are prohibited from demanding documents from applicants, the provision of which is not provided for by law. If you do not have a legal education, a lot of experience or an irresistible desire to learn several voluminous laws, we advise you to use the services of specialists in order to register the LLC. The founding documents of the LLC, as well as the documents that are additionally submitted for the registration of the LLC, are documents that are proofread most carefully for their compliance with the law and the slightest mistake, a mistake can result in the refusal of state registration of the company. Of course, the refusal of state registration of a limited liability company in no way prevents the re-submission of documents (after correction of deficiencies), however, it will cost additional time and money, since with the adoption of a new law in this area, almost all documents submitted for state registration of the LLC, must be notarized.
Therefore, the following documents are submitted to the registrar for state registration of the LLC:

1) application for state registration of the foundation of the LLC (not subject to notarization, can be signed by a representative by proxy or the founder of the LLC)
2) decision / minutes on the foundation of the LLC (the signatures of the founders must be notarized, and the document itself must be drawn up on a notarized form)

3) founding document of the LLC - the charter (signatures of the founders must be notarized) or an indication in the decision/minutes about the use of model articles by the LLC
4) the structure of ownership of the LLC - a schematic representation of the ownership relations within the LLC before determining the ultimate beneficial owners of the company (not subject to notarization, can be signed by a representative by proxy or the founder of the LLC)
5) passport documents of the founders of the LLC (subject to mandatory notarization)
6) a notarized power of attorney if the documents for registration are not submitted by the founder, but by another authorized person.

TAXES PAID BY THE LLC

The issue of the LLC taxation can be considered from two perspectives, depending on the company's choice of taxation system:
I. GENERAL SYSTEM OF TAXATION OF THE LTD
The tax rate for the general taxation system of the LLC is 18% of the company's profit, and we also do not forget about the payment of unified social tax зук each employee (22% of the minimum wage). The monthly expenses for the LLC should also include the costs of banking account of the LLC, as well as accounting services, if your LLC does not have a full-time accountant and you do not want to deal with accounting issues yourself.
II. SIMPLIFIED SYSTEM OF TAXATION OF THE LTD
The tax rate for the simplified taxation system is 5% of the company's profit. At the same time, we draw your attention to the difference between the terms profit and income, this is the main difference between the general and simplified taxation systems. Income is the money received by the company during a certain period of time, while profit is the money received by the company after deducting of all expenses  from the income for the same period of time. That is, if your LLC plans its activities in the field of service provision, for example, which does not require constant expenses for its activities (for example, consulting activities), then the simplified taxation system is just for you, since your income will be approximately equal to the profit. If the activity of the LLC is related to the production of goods (for example, clothing production, which assumes that the price of the final product includes the cost of materials regularly purchased by the LLC from other entities), then it will be logical to choose a general taxation system, since after deduction expenses, your income will be significantly less than the profit received from the sale of goods.

You can choose the taxation system both during the initial registration of the LLC and change it later.