Setting Up a Company in Ukraine for Israelis: Limited Liability Company (TOV), Documents from Israel, Foreign Director, Tax and Banking under Martial Law

Many Israelis work with Ukraine in technology, trade, agriculture and reconstruction, and at some point ask whether to set up a local entity. This guide explains which legal form is suitable, which documents need to be prepared in Israel, what changes under martial law and what the obligations are after registration. All figures are correct as of November 2026.

1Which company form suits an Israeli who wants to operate in Ukraine?

In most cases a limited liability company (TOV, Tovarystvo z obmezhenoyu vidpovidalnistyu) is set up. It is a separate legal entity, with no minimum capital, whose owners can be individuals or foreign companies at 100%. When you only want to test the market without commercial activity, a representative office of the Israeli company can be considered.

A detailed comparison between a subsidiary, a representative office and direct activity, including permanent establishment aspects, is in the guide for an Israeli company operating in Ukraine. Here we focus on setting up a limited liability company.

2What are the steps for setting up a limited liability company in Ukraine?

Registration is made in the Unified State Register of Legal Entities, with a state registrar or a notary, under Registration Law 755-IV. When the documents are complete, the registrar acts within 24 hours excluding weekends and holidays. When a notary files the documents as part of a notarial act, registration is made immediately after it.

1. Planning the structure: who the shareholders are (individuals or an Israeli company), the division of capital, who the director is and where the company will be managed from. The decision affects tax in Ukraine and in Israel.
2. Tax number for individuals: a shareholder or director who is a foreign individual usually needs a Ukrainian tax identification number (RNOKPP). It can also be obtained through an attorney-in-fact.
3. Preparing documents in Israel: an up-to-date extract from the Israeli Companies Registrar and a board resolution on the incorporation (when the shareholder is a company), copies of passports, a power of attorney for a representative in Ukraine. All with an apostille and a certified Ukrainian translation.
4. Charter: a bespoke charter, or a declaration that the company operates under the government's model charter. In a partnership of several investors a bespoke charter and an agreement between the participants are recommended.
5. Registered address: a physical address in Ukraine is required; a post box is not enough.
6. Ultimate beneficial owner: documents identifying the ultimate beneficial owner (UBO) and an ownership structure chart, up to the individual owners, are attached.
7. Filing: a registration application, the founders' decision and the charter. In the same application you can also request VAT registration or choose the simplified tax regime.
8. After registration: opening a bank account, appointing a local accountant, registering a foreign director for a work permit and paying the capital within the deadline in the charter or the law.

3Which documents need to be prepared in Israel?

In Israel you need to prepare passports and, where the shareholder is an Israeli company, also its certificate of incorporation, an up-to-date company extract and a resolution approving the incorporation, together with a power of attorney and an ownership chart. Every document needs an apostille and a certified translation into Ukrainian.

• An individual shareholder: a passport, a Ukrainian tax number, and a notarised power of attorney with an apostille if someone signs on their behalf.
• A shareholder that is an Israeli company: a certificate of incorporation, an up-to-date company extract, a resolution to set up the Ukrainian company and appoint an authorised signatory, and a power of attorney.
• Ownership structure: a chart showing the entire ownership chain up to the individuals who actually hold it, with details of the ultimate beneficial owners.
• Translation: every foreign document is filed in certified Ukrainian translation, and the translator's signature is usually certified by a Ukrainian notary.
• Apostille: Israel and Ukraine are parties to the Apostille Convention, so full consular legalisation is not needed.

4Can you open the company from Israel, without travelling?

Usually yes. Filing is done through an attorney-in-fact in Ukraine, on the basis of a notarised power of attorney with an apostille and translation, or a power of attorney executed at the Ukrainian consulate. The stage at which personal attendance is sometimes required is opening the bank account, depending on the bank's policy.

5How much does incorporation cost and how long does it take?

There is no registration fee for setting up a private company: under Registration Law 755-IV, as of 2026, it is not included in the list of administrative fees, and the registrar acts within 24 hours of receiving proper documents. The actual costs are the notary, translation, apostille and professional fees, and later changes to the company's details involve small fees.

6Can the director be Israeli?

Yes, but a foreign director working in the company needs a work permit from the regional employment authority, under article 42 of the Law on Employment of the Population. In 2026 the fee is 9,984 to 33,280 hryvnia, depending on the permit period. The permit cannot be obtained at the same time as registering the company, so in the initial period some companies appoint a local director.

The choice of director also has an Israeli tax aspect: a foreign company whose business is controlled and managed from Israel may be treated as resident in Israel for tax purposes. See tax for an Israeli investor in a foreign project company.

7How do you open a bank account for the company during the war?

The account is opened at a Ukrainian bank after the company is registered, and some banks require a personal visit under their own policy. Ukrainian banks examine foreign ownership in depth: the source of funds, the ownership structure, the ultimate beneficial owners and the planned activity, as well as possible ties to Russia or Belarus. It is worth preparing an orderly document file in Hebrew and English with translation. See also what know-your-customer checks require.

8What are the ongoing obligations after registration?

After registration the company must handle VAT, tax and payroll reporting, open an electronic cabinet in the court system, keep its beneficial-owner details updated and pay up its capital within six months unless the charter provides otherwise. As of 2026, according to PwC Tax Summaries, the mandatory VAT registration threshold is 1 million hryvnia over 12 months.

• VAT: registration is mandatory when taxable supplies exceed one million hryvnia in 12 months; voluntary registration is possible earlier. The standard rate is 20%.
• Corporate tax returns: a new company files an annual return. An annual return is filed within 60 days of year end, and a quarterly return, where applicable, within 40 days of quarter end.
• Monthly VAT: a return within 20 days of month end, and payment within 10 days of the filing deadline.
• Payroll: withholding of 18% income tax and 5% military levy from employees, and a unified social contribution of 22% borne by the employer.
• Electronic court: a Ukrainian company must open an electronic cabinet in the courts' system (Law 3200-IX). Without one it is disadvantaged in proceedings, for example it will not receive a court order.
• Ultimate beneficial owner: the beneficial owner details and the ownership structure must be kept up to date in the register.
• Capital: payment of the agreed capital within six months of registration, unless the charter provides otherwise. A participant who has not paid receives a notice and an additional period of up to 30 days, after which the general meeting decides on measures.

9How will the new company be taxed?

As of November 2026, according to PwC Tax Summaries, the default is corporate tax of 18% on profit. A small company can choose the simplified tax, group 3: 5% of income, or 3% of income plus VAT, as long as annual income does not exceed 1,167 minimum wages (10,091,049 hryvnia in 2026), according to a clarification by the Ukrainian tax authority.

For details of the tax, the dividend to Israel and the treaty, see the tax guide for a company in Ukraine, and the general guide Israel's tax treaties.

10What needs to be reported in Israel about a Ukrainian company?

In Israel, a declaration of holding in a foreign resident body of persons (Form 150) is attached to the annual return, transactions with related parties are reported, and tax is paid on dividends with a credit for the Ukrainian tax.

• Form 150: anyone holding a foreign resident body of persons attaches a declaration to the annual return.
• Related-party transactions: a shareholder loan or services between the Israeli company and the Ukrainian company require arm's-length pricing and reporting.
• Dividend: taxed in Israel, with a credit for the Ukrainian tax under the treaty and the Israeli Income Tax Ordinance.
• Controlled foreign company: in a company whose income is mostly passive and taxed at a low rate, the controlled foreign company (CFC) rules may apply.

For a full list of reporting obligations see our Israel Tax Authority reporting hub. It is advisable to coordinate the structure with an Israeli accountant before incorporation.

11What should be checked before incorporating under martial law?

Before incorporating, check how long martial law remains in force (it has been extended to 29 January 2027), sanctions exposure of the parties, the location of the activity and assets, and the route for returning money to Israel.

• Duration of martial law: on 26 October 2026 it was extended until 29 January 2027, and so far it has been extended every 90 days.
• Sanctions: check that partners, suppliers and customers are not on Ukraine's sanctions lists. A work permit for citizens of Russia or Belarus requires approval from the Security Service.
• Location of the activity and assets: special restrictions on registration and transactions apply in combat zones or occupied territories.
• Route for returning money: building the financing structure so that it fits the foreign currency rules.

12What should be decided before setting up a company in Ukraine?

The important decisions are made before registration: who holds the shares, how the company is financed, who manages it and from where, and how profits will return to Israel. We prepare the documents in Israel, draft charters and participants' agreements, and coordinate with lawyers and accountants in Ukraine and with the tax adviser in Israel.

The information here is general and current as of November 2026, and every case requires individual review in Ukraine and in Israel.

More on doing business in Ukraine: Corporate tax and transferring profits to Israel from Ukraine · An Israeli company operating in Ukraine · Commercial disputes and litigation in Ukraine · Comparison of 8 countries · All guides for companies and businesses

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