Charitable Organisations and Public Associations in Ukraine

Ukraine has separate legal frameworks for charitable organisations and public associations. The Law of Ukraine “On Charitable Activities and Charitable Organisations” recognises three forms of charitable organisation: a charitable society, a charitable institution and a charitable foundation. The Law of Ukraine “On Public Associations” sets out two legal forms of public association: a public organisation and a public union. In this context, “public” refers to civil society rather than the state.

This article is intended for foreign philanthropists, international foundations, companies, donors and informal groups planning to establish or fund a non-profit organisation in Ukraine. The legal form determines the governing bodies, founder requirements, registration procedure, use of donations and tax reporting.

1. Legal forms of charities and public associations

2. Founders and foreign participation

3. State registration of organisations in Ukraine

4. Non-profit tax status

5. Disclosure of ultimate beneficial owners

6. Funding and reporting obligations

7. Foreign employees and volunteers

Frequently asked questions

How DLF can help

1. Legal forms of charities and public associations

The choice between a charitable organisation and a public association depends primarily on its intended purpose. A charitable organisation provides assistance in the areas specified by law, including education, healthcare, social protection and culture. A public association is formed to exercise and protect rights and freedoms and pursue public interests; making a profit is not its principal purpose.

The table compares organisations with legal entity status.

A charitable society has at least two founders and operates under a charter. A charitable institution may have one or more founders, who transfer the assets specified in the founding act but do not participate in managing the institution; its highest governing body is the supervisory board. A charitable foundation can be established by one or more founders. It has participants and operates under a charter; its highest governing body is the general meeting of participants.

Both types of public association may operate with or without legal entity status. Without that status, an association cannot open accounts, acquire property or enter into contracts in its own name as a separate legal entity. If no governing bodies are formed, the founders authorise one or more persons to represent the association in dealings with the state and other parties. This form may suit informal groups that do not need independent financial operations.

2. Founders and foreign participation

Individuals with legal capacity and private-law legal entities, including foreign individuals and foreign legal entities, may establish a charitable organisation. The law excludes state authorities, local self-government bodies and other public-law legal entities.

Foreign nationals and stateless persons lawfully present in Ukraine may establish a public organisation on the same terms as Ukrainian citizens. The minimum age is 18, or 14 for youth and children’s organisations. A person declared legally incapable by a court cannot be a founder.

A public union is founded by private-law legal entities, including foreign companies. Political parties, entities whose termination has been decided or is underway, and entities with the same person as their sole founder cannot act as founders. A separate restriction applies where an entity’s founder or holder of a substantial interest is listed in connection with terrorist activities or is subject to international sanctions.

A charitable society and either type of public association require at least two founders. A charitable institution or charitable foundation may be established by one founder.

3. State registration of organisations in Ukraine

The Law of Ukraine “On State Registration of Legal Entities, Individual Entrepreneurs and Public Formations” governs registration procedures and timelines. The general review period for public associations is up to three working days. For associations with legal entity status, it may be extended where necessary by no more than 15 working days. Charitable organisations are generally registered within 24 hours after receipt of the documents, excluding weekends and public holidays.

For an organisation seeking legal entity status, the documents depend on its legal form and founders and include:

• an application in the prescribed form;
• an original or notarised copy of the founders’ decision to establish the organisation;
• a register of persons (citizens) who participated in the founding congress (conference or assembly), for a public association;
• the ownership structure in the form and with the content prescribed under Ukrainian law;
• information on the ultimate beneficial owner (UBO) or absence of a UBO and the ownership structure, to the extent required by law;
• a charter or founding act if the organisation uses its own founding document;
• information on governing bodies and persons authorised to carry out registration formalities, for a public association;
• UBO identification documents where required by law.

If a founder is a foreign legal entity, a document confirming its registration in its home jurisdiction must also be submitted, issued no more than one month before filing. Foreign documents require consular legalisation or an apostille unless an international treaty provides otherwise, together with a duly certified Ukrainian translation. Initial state registration of these organisations is free of charge.

Deadline for public associations. Registration documents must be filed within 60 calendar days of the founding assembly. If this deadline is missed, the association is treated as not having been formed and the founding procedure must be repeated.

Model charter for public organisations. Cabinet of Ministers Resolution No. 460 of 18 April 2025 introduced an experimental model-charter framework for public organisations. Registration through Diia is available to founders who meet the electronic service requirements. If the founders include foreign nationals, documents must be filed offline through the territorial office of the Ministry of Justice. The framework does not apply to charitable organisations or public unions.

4. Non-profit tax status

Non-profit tax status is confirmed by inclusion in the Register of Non-Profit Institutions and Organisations (the Register), maintained by the State Tax Service. The application may also be submitted through the state registrar when the organisation is established. This status concerns corporate income tax and does not provide an exemption from all taxes and mandatory payments.

The Tax Code of Ukraine sets out the following general conditions for non-profit status:

1. the organisation is established and registered under the law governing its type;
2. income is used to maintain the organisation and pursue its statutory purposes;
3. the founding document prohibits distribution of income among founders, participants, members, employees, members of governing bodies and related persons; salaries, unified social contributions and expenditure permitted for the organisation’s statutory activities are not treated as distributions;
4. the founding document provides for assets on termination to pass to one or more non-profit organisations of the corresponding type or to the budget;
5. the organisation is entered in the Register by a decision of the State Tax Service.

Form 1-RN is submitted to the State Tax Service, which decides within three working days after receiving the documents. An organisation entered in the Register is treated as non-profit from its state registration date if the documents were submitted during registration or within 10 days of that date.

Charitable organisations are subject to a separate limit: administrative expenses must not exceed 20% of income for the current year. Compensation and other payments to employees related to the organisation’s statutory purposes do not trigger removal from the Register if they are provided for in its founding and/or internal administrative documents, comply with charity law and do not exceed 25% of administrative expenses actually incurred during the reporting year.

If an organisation identifies a breach of the tax requirements for non-profit status, it must file a report for the prescribed period and pay corporate income tax calculated on the amount of transactions involving misuse of assets. It is removed from the Register and becomes a corporate income tax payer from the first day of the month following the breach.

5. Disclosure of ultimate beneficial owners

Charitable organisations and public associations with legal entity status must hold and submit information on their ultimate beneficial owner, or the absence of one, and their ownership structure. The determining factor is an individual’s actual decisive influence; being a founder does not automatically make that person a UBO. If no such influence exists, the state registrar must be notified of the absence of a UBO, with an appropriate explanation.

As a general rule, changes to UBO and ownership-structure information must be reported within 30 working days after they occur. Incomplete, inaccurate or erroneous information must be corrected within three working days after discovery.

6. Funding and reporting obligations

Charitable organisations may receive donations, grants, bequests and other receipts not prohibited by law. They may also conduct economic activities not aimed at generating profit if those activities contribute to their statutory purposes. Profits cannot be distributed among founders, employees, members of governing bodies or related persons; lawful salaries and permitted expenses remain allowed. Organisations must prepare and submit financial, statistical and other mandatory reports.

A public association with legal entity status may conduct business activities directly if its charter permits this, or through legal entities it establishes. The activities must correspond to and further its purposes. Such associations must keep accounts, prepare financial and statistical reports and fulfil their tax obligations. Recipients of state or local budget support must submit and publish reports on the use of those funds for their designated purpose.

Foreign donations and grants are generally permitted for charitable organisations and public associations with legal entity status. The source of funds, anti-money-laundering requirements, sanctions, the designated use of assistance and grant programme conditions should be considered when receiving them. A donor may impose additional contractual reporting requirements.

7. Foreign employees and volunteers

Paid employees. Under the Law of Ukraine “On Employment of the Population”, the employer generally obtains a work permit for foreign nationals and stateless persons from the territorial employment service. As a general rule, the permit is issued for the term of the employment contract, up to a maximum of two years. Exempt categories include permanent residents of Ukraine, persons granted refugee status, supplementary protection or temporary protection in Ukraine, and foreign nationals who have arrived to participate in international technical assistance projects.

Volunteers. The Law of Ukraine “On Volunteer Activity” allows foreign nationals and stateless persons with legal capacity who are lawfully present in Ukraine to volunteer. Unpaid volunteering does not require a work permit. Foreign volunteers are engaged through organisations and institutions entered in the Register of Non-Profit Institutions and Organisations whose details are published on the website of the National Social Service of Ukraine. The National Social Service must be notified in writing within five working days of engagement; the State Migration Service must also be notified within five working days after volunteering ends.

Frequently asked questions

What is the practical difference between a charitable foundation and a public organisation?

A charitable foundation is established for charitable activities in the areas defined by law. A public organisation brings individuals together to protect rights and freedoms and pursue public interests. To obtain non-profit tax status, both must meet the tax requirements and be entered in the Register.

Can a foreign individual or company establish an organisation in Ukraine?

Foreign individuals and foreign private-law legal entities may establish charitable organisations subject to the legal requirements. Public organisations are founded by individuals who are generally at least 18; foreign founders must be lawfully present in Ukraine. Public unions are founded by private-law legal entities. Restrictions affecting a particular founder, including sanctions, must be checked before filing.

What conditions must an organisation satisfy to obtain non-profit status?

The requirements include proper formation and state registration, a prohibition on income distributions, use of funds for permitted purposes and provisions for assets on termination to pass to non-profit organisations of the corresponding type or to the budget. Status is confirmed by entry in the Register. Form 1-RN may also be submitted through the state registrar; the State Tax Service generally decides within three working days.

Do foreign volunteers need a work permit in Ukraine?

No work permit is required for unpaid volunteering. The volunteer must nevertheless be lawfully present in Ukraine, and the organisation must meet the conditions for engaging foreign volunteers and comply with the notification obligations.

What is the model charter and who may use it?

It is a founding document approved by the Cabinet of Ministers for public organisations under an experimental project. Charitable organisations and public unions cannot use this framework. Choosing the model charter does not replace entry in the Register for non-profit tax status.

What happens to an organisation’s assets on liquidation?

After creditors have been satisfied, a charitable organisation’s remaining assets pass to one or more charitable organisations under its founding documents or a court decision. Transfer to the State Budget applies in the cases established by law where no such recipient is available. On voluntary dissolution of a public association, assets pass to other public associations for statutory or charitable purposes; if no such decision is adopted, they pass to the state or local budget. The tax requirements for non-profit status apply in both cases; founders cannot recover residual assets as their ownership share.

How DLF can help

DLF supports international foundations, foreign companies, donors and NGO founders throughout their work in Ukraine: from selecting a charitable or public-association structure and drafting founding documents to registration, beneficial ownership filings, non-profit tax status, grant agreements, reporting and work permits for foreign staff. Support is provided by DLF’s corporate and tax practices.

Igor Dykunskyy, LL.M. — Partner, Attorney-at-law, DLF attorneys-at-law.

Contact: +380 44 384 24 54, [email protected].

This material is intended for general information only. Applying the approaches described depends on the circumstances of each case and requires a separate legal assessment.