Business model - is tnis legal and possible in Ukraine

Member since 13 December 2011

maweyMember02 February 2012 13:05:58

Hi,

I am starting a web-page startup in Poland, and I would like to start it in Ukraine at the same time. Here in Poland I have a Limited Liability Company which is responsible for the start-up.

I am considering ways of entering the ukrainian e-market. One option is to establish a LLC in Ukraine (but it takes money and time). Another option is to just do business over there - but this option is limited, as I would like to have the possibility to have a local bank account and the possibility to issue invoices as a local company.

So I thought about another option (and here comes the questions - is this legal? Ist this feasable?)

1) I am finding a local partner (LLC company preferabely) in Ukraine
2) I am signig a contract with the local partner for the use of my webpage. The contractor will be using my webpage on my domain (but the domain will be .com.ua of course) but he has no job to do - just issuing invoices and doing the taxes for those invoices. Each month my company is issuing one invoice for the local partner for my share of the profit (income minus taxes paid, minus additional cost of book-keeping if applicable : the rest is shared 50/50). From my point of view it good option as I am able to enter the market and build the position of this business, the local partner has a few more paperwork to do but earns money for basically doing nothing...

So my questions:
1) Is it legal?
2) Will it work?
3) Where to look for this partner?

Thanks in advance!

Disclaimer: The same situation is regarding the Russian market, so I will be posting the same topic on the UA forum!

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Wilson Guest

WilsonGuest02 February 2012 14:09:13

This is completely impossible and confusing me you will have your own domain than why don't use your own business on your web-page and promote the locals and take per month leads from the local dealer. and promote it by e-commerce, affiliate marketing email marketing, seo must to promote your website.

You can use the same website for both country it will not make problem just need to crawl perfectly with e-commerce expert person.

mawey Member

Member since 13 December 2011

maweyMember02 February 2012 14:18:38

Well - the thing is that to make business in a country i have to pay taxes in that country... In this case - where would I pay taxes?

Wilson Guest

WilsonGuest02 February 2012 14:24:15

maybe you can setup your firm in asia and run the e- commerce service to save tax depends

GreyKyiv Ukraine Expert

Member since 27 March 2009

GreyKyivUkraine Expert05 February 2012 07:18:42

440

To answer your question it is necessary to understand what business you are going to do. This is crucial for deciding on money transferring schemes, taxes and maybe customs duties and procedures. Also maybe you do not need an LLC but just a private individual entrepreneur.

As to you option with a local partner:
1) As I have said above, you may need an LLC or another form of business;
2) "Each month my company is issuing one invoice for the local partner for my share of the profit (income minus taxes paid, minus additional cost of book-keeping if applicable : the rest is shared 50/50)" - in order to start business under such a scheme you must understand all taxes and other expences (e.g. bank commission) as these may make this your option unprofitable. Plus maybe you do not need a local partner at all. If you do need a local partner then your scheme requires it to be regisrered as a subject of foreing economic activity that leads to more expences and more difficult registration procedure. Otherwise banks will reject money transfers between you and your local partner.

Thus answering to you last questions my answers for now are 1) maybe or maybe not; 2) maybe or maybe not; 3) if you do not know people who may suggest you such a partner you may start your search from this forum.

If you have any question to me feel free to contact me via email as the forum is not quite a comfortable place for long discussions. I sent my email address to you via PM so check out your pm box.