Representative office outsourcing means handing the back office of a foreign company's office in Ukraine to an external team: bookkeeping, payroll, HR, tax reporting and head office reports. Key Solutions runs these functions under a contract from set-up to closure.
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In short
- When you need it: a foreign company opens a representative office in Ukraine, hires its first staff or changes its accounting provider.
- What you get: bookkeeping, payroll with personal income tax and the single social contribution, HR records, tax filings, budget control and head office reports in English.
- Onboarding: timing depends on the number of open periods and the state of the records; we fix it in the contract after a diagnostic review.
- Fee: agreed individually, based on headcount, transactions, the office's tax status and reporting format.
- How to start: describe the office's functions, headcount and the reports your head office needs.
What the office can outsource
Under Art. 95(2) of the Civil Code, a representative office is a separate unit of a company that represents and protects its interests in Ukraine. Small offices rarely have their own back office, so the functions go to one team under one contract.
| Function | What we do | Legal basis |
|---|---|---|
| Bookkeeping | accounting policy, source documents, ledgers, simplified financial statements | Arts. 2(1) and 11(3) of Law No. 996-XIV |
| Payroll | salary calculation, income tax as tax agent, social contribution | Subpara 14.1.180 of the Tax Code, Law No. 2464-VI |
| HR records | orders, timesheets, leave, personnel files | labour legislation |
| Tax reporting | tax registration of the non-resident, returns and reports | Para 64.5 of the Tax Code |
| Registration and legal matters | together with legal.ua lawyers | Art. 95 of the Civil Code |
The first weeks after registration
A representative office is deemed established on the date of its state registration (Art. 95(5) of the Civil Code). Within ten days the non-resident must apply for tax registration at the office's location (Para 64.5 of the Tax Code). We prepare the tax application, an accounting policy agreed with the head office and HR templates, so the office can hire staff and make payments.
Budget control and head office reporting
We keep the office budget, compare actual spending with the plan and send a monthly report in English. The consolidation package follows the group format, with IFRS conversion where needed. Tax status and detailed accounting are covered on the page about accounting for foreign representative offices.
What the service includes
- accounting policy and chart of accounts aligned with the head office;
- processing of source documents, bank statements and expense reports;
- payroll, income tax and social contribution, with payment instructions before the due date;
- HR documents: orders, timesheets, leave, terminations;
- tax and financial reporting to the State Tax Service;
- budget, plan-versus-actual report and consolidation package in English;
- closure support: inventory count, settlements, interim liquidation balance sheet (Art. 110-1 of the Civil Code).
How we work
- Office functions and status. We review the regulations, functions and headcount.
- Contract and routine. We agree scope, document deadlines and report formats.
- Tax registration and start. We prepare the tax application, accounting policy and HR templates.
- Monthly cycle. Source documents, payroll, taxes and payments on schedule.
- Head office reporting. Plan-versus-actual and the consolidation package.
- Annual reporting. Annual financial statements and reconciliation with the head office.
Timing and fees
Onboarding time depends on the number of open periods and the state of the source documents; we fix it in the contract after a diagnostic review. If the office already has open periods, we assess them first and restore the accounts where needed. The monthly fee is fixed in the contract and depends on headcount, transactions, foreign currency payments, the office's tax status and the reporting format.
What we need from you
- registration documents and the office regulations;
- the head of office's power of attorney and a description of functions;
- staff list and employee details;
- access to bank statements and source documents;
- head office reporting requirements and a contact who approves payments.
Deliverables
- books kept from the registration date under an agreed policy;
- payroll and payroll taxes calculated before the due date, with payment instructions;
- tax filings with receipts;
- a monthly plan-versus-actual report and consolidation package in English.
Legal basis
Legal basis for the work
- Arts. 95 and 110-1 of the Civil Code: representative offices, their registration and liquidation;
- Arts. 2(1) and 11(3) of Law No. 996-XIV: accounting and simplified financial statements of representative offices;
- Subparas 14.1.180, 14.1.193, 141.4.7 and Para 64.5 of the Tax Code: tax agent, permanent establishment, tax registration;
- Art. 4 of Law No. 2464-VI: social contribution payers.
Common mistakes are a missed tax registration deadline, a wrong tax status and payroll tax errors. One team under one contract keeps payroll, taxes and head office reports consistent.
Why Key Solutions
- Company
- Key Solutions Audit Firm LLC (ТОВ «АУДИТОРСЬКА ФІРМА «КЕЙ СОЛЮШНЗ»), EDRPOU code 39610085, registered on 30.01.2015. The company's details are public in the Unified State Register (ЄДР).
- Contract
- We work under a contract: scope, timing, liability and confidentiality of client information are agreed before work starts.
- Group
- Key Solutions is part of Innova Consulting Group: legal matters are handled by legal.ua, crypto-asset taxation by crystal.tax.
- Office
- Our office is at 77 Velyka Vasylkivska St., Kyiv. We serve clients across Ukraine remotely. The specialists who run engagements are listed on the Our employees page.
Frequently asked questions
What can a foreign representative office outsource in Ukraine?
The whole back office: bookkeeping, payroll and HR records, tax reporting and the single social contribution, budget control and reporting to the head office. The head of office and the staff who perform its functions stay in-house, and legal matters go to legal.ua lawyers in our group.
How is a representative office of a foreign company registered?
A representative office of a foreign legal entity is subject to state registration and is deemed established on the date of registration (Art. 95(5) of the Civil Code). Registration is handled by legal.ua lawyers; we take over tax registration, accounting and payroll.
When must the office register with the tax authority?
The non-resident files an application with the tax authority at the office's location within ten days after the office is registered (Para 64.5 of the Tax Code).
What payroll taxes does a representative office pay?
A representative office of a non-resident acts as a tax agent for personal income tax on its employees' salaries (Subpara 14.1.180 of the Tax Code). Representative offices of foreign companies located in Ukraine also pay the single social contribution as employers (Art. 4(1)(1) of Law No. 2464-VI).
Does a representative office pay corporate income tax?
It depends on what the office actually does. If the non-resident conducts business through the office, it is a permanent establishment and its profit is taxed under the general rules (Subparas 14.1.193 and 141.4.7 of the Tax Code).
How much does representative office outsourcing cost?
The monthly fee is agreed individually and depends on the number of employees, transactions and foreign currency payments, the office's tax status and the head office reporting format.
Related services
Let's discuss outsourcing for your office
Tell us when the office was or will be registered, its headcount and the reports your head office needs. We will reply with the scope and fee.
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