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Starting up in Ukraine

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SuperPanda:
After some consideration and finding out earlier on today my job is done for (I'm being put on gardening leave), I've decided to take the dive and start up in Ukraine providing that a suitable factory/distillery with good infrastructure to ship to the EU/UK can be found.

I've spoken to a couple of firms both here in the UK and Ukraine, they've suggested that I set up through a Cypriot company that owns the Ukrainian subsidiary for tax reasons but it is only suitable for dividend payments, I'd still be liable for the full 25% (bar usual deductions) unless I cook the books :rolleye0009:

I'll be investing a significant amount, along with a business partner who is doing it with me but has more experience than I in this particular area, but I'm unsure as to whether the hassle of having an extra company in Cyprus is worth it to save on dividend payments that won't come for quite some time.

The main reason we picked Ukraine is because of the cheapness of set up and labour, we'd considered Poland but it's was more expensive despite slightly less hassle.

Does anyone have any opinions on whether I should listen to the various people I've spoken to thus far, I don't remember there being a Cypriot company when I was consulting before in Ukraine (I didn't set up the business, I came in much later) which is why I'm puzzled and no one has helped me out in my discussions thus far.

andrewfi:
(Q) How can a foreigner become a millionaire in Ukraine?

(A) Start off as a billionaire.
 :hidechair:

AvHdB:
Curious what product are you exporting?

Besides time what is 'a significant amount' that you are investing?

Using a Cypriot 'holding firm' is I understand still common in Ukraine and has been since more or less the dissolution of the Soviet Union.

I would seek a variety of opinions and avoid those who are trying to sell there own 'product'.

So you know Andrew's quip has allot of truth in it.

msmoby:
SuperPanda

I can only help you re Cyprus

There are many UA representatives in Cyprus that will fall over themselves to advise you re setting up the Company

Corporation tax is 12.5 percent and zero for shipping companies

SuperPanda:

--- Quote from: andrewfi on September 21, 2016, 07:30:49 AM ---(Q) How can a foreigner become a millionaire in Ukraine?

(A) Start off as a billionaire.
 :hidechair:

--- End quote ---
This is very true and would apply to Israel and Russia as well as the UK too.

--- Quote from: AvHdB on September 21, 2016, 08:00:06 AM ---Curious what product are you exporting?

Besides time what is 'a significant amount' that you are investing?

Using a Cypriot 'holding firm' is I understand still common in Ukraine and has been since more or less the dissolution of the Soviet Union.

I would seek a variety of opinions and avoid those who are trying to sell there own 'product'.

So you know Andrew's quip has allot of truth in it.

--- End quote ---
We'll actually be starting get up a vodka distillery however it isn't for the Ukrainian market but an add on to another business I've got a stake in, Ukraine is just cheaper when it comes to doing it, once I wrap my head around the Cyprus/Ukraine Ltd stuff.

There will be a total of 15 million UAH invested in the first year, or at least that is the plan, we'll see what happens once we've found the ideal location.

Is there a particular reason for the Cypriot holding company, aside from dividend taxes there doesn't appear to be a lot to it as the risks are there regardless and protection doesn't appear to be there either.

Thanks :)

Edit: we do have an accountant and various people in London however they're not any help for Ukraine hence why I've turned to the Internet!

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