Reorganization of the foreign company’s representative office

A foreign Client – owner of the group of companies engaged in supply of grains and oilseeds in Black Sea Region – applied to Interlegal. In Ukraine the Client, represented by foreign company’s non-commercial representative office with auxiliary functions, purchases goods on CPT and FOB terms.

Due to reorganization of the parent company (by attachment to another company), the Client needs consulting by the Ukrainian lawyers. Its principal issue of concern is the following: whether it will be possible to make business in Ukraine on behalf of the new company, with the current representative office engaged.

A complex aspect was low level of regulating the issues of registration, activity and liquidation of the foreign companies’ representative offices, while such procedure as reorganization of the foreign company’s representative office is not prescribed by the law at all.

With regards to the current law provisions and court practice, having analyzed such issue on the grounds of the Ministry of Economy replies to requests, Interlegal lawyers drafted detailed advice giving the answers to the Client’s questions. Legal advice touched also new risks of recognition as permanent representative office, which may arise due to adopting the Draft Law No. 1210.

Interlegal junior lawyer Viktoria Yankovskaya and associate attorney Marta Sverdlykivska, managed by partner Irina Voyevodina, led the project.