# Accounting for representative offices in Ukraine: bookkeeping, payroll and reporting

> Accounting, payroll, HR administration and reporting for representative offices of foreign companies in Ukraine, including permanent establishments.

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Accounting that makes it clear how the representative office uses its funds. UHY Prostir provides bookkeeping, HR administration and payroll services for representative offices of foreign companies in Ukraine.

We provide bookkeeping, tax accounting, HR administration and payroll services in line with Ukrainian law for all types of representative offices of nonresident companies — whether or not they have permanent establishment status.

We prepare financial statements, tax returns and statistical reports, as well as information at the head office’s request.

We provide full outsourced accounting or act as your chief accountant, while your own staff enter source documents and transactions into the accounting software.

## How we can assist you

- Outsource accounting for a representative office that is starting operations in Ukraine, or change accounting service providers for an office that is already operating.
- Fully or partly outsource the representative office’s accounting in line with the head office’s requirements.
- Hand over payroll and HR administration to an external team at the head office’s request or on your own initiative.
- Get advice from a tax consultant or accountant on specific matters when your accounting is already in place.

Tell us about your situation, and we’ll propose an appropriate scope of accounting services.

## Our services

### Full outsourced accounting

We provide accounting services for the representative office in line with Ukrainian law and Ukrainian national accounting standards (P(S)BO). Our services usually include:

- accounting for assets, liabilities and funding, including by office, and providing accounting information at the head office’s request;
- analyzing the transactions of a representative office that doesn’t meet the definition of a permanent establishment for signs under which it may be recognized as a permanent establishment;
- preparing payment orders in online banking in line with the payment procedure agreed with you;
- preparing required tax reports;
- preparing financial statements and statistical reports;
- preparing documents in response to requests from tax and other government authorities;
- payroll calculation;
- HR administration.

### Outsourced chief accountant services

We act as the representative office’s chief accountant. Our services usually include:

- organizing and controlling accounting;
- preparing required tax reports;
- preparing financial statements and statistical reports;
- preparing documents in response to requests from tax and other government authorities.

We agree on the processes you handle in-house when we sign the agreement.

### On-demand services

In addition to our regular services, we provide the following at your request:

- accounting, tax and HR advice, including on head office employees who are non-residents and on visa matters;
- written explanations and official responses to requests from government authorities;
- assistance during tax inspections and audits: preparing documents and explanations, analyzing the tax audit report and preparing objections to it;
- taking over the accounting records from your previous accountant and the initial accounting setup, including preparing the accounting policy;
- preparing reporting packages in the head office’s format, including under IFRS;
- monitoring the implementation of the representative office’s budget;
- monthly reconciliation of management and accounting records;
- assistance with closing the representative office.

## Service fees

We set our fees for accounting services on a case-by-case basis. We set out the scope of services, fees and timeline in our proposal and record them in the relevant agreement.

Our fees for full outsourced accounting are based on:

- a base monthly fee — a fixed monthly payment for services within the base volumes set in the agreement, for example, the number of documents and bank payments;
- a fee for payroll calculation and HR administration, which depends on the number of employees;
- an additional charge for exceeding the base volumes — the number of documents, payments or employees — calculated monthly or quarterly;
- a fee for preparing required reports — tax returns, financial statements and statistical reports; VAT administration for representative offices registered as VAT payers is charged separately;
- a one-time fee for the initial accounting setup;
- a one-time fee for the handover of accounting records;
- payment for on-demand services, including advice, reporting packages in the head office’s format and assistance during inspections, based on the hours spent or a separate agreement.

Outsourced chief accountant services are charged by the hour.

Fees may also include services not directly related to accounting, such as:

- a fee for hosting and storing your databases on our servers;
- reimbursement of license costs for accounting and other software;
- customizing accounting software to the representative office’s needs.

## Getting started

1. **Tell us what you need**\
Submit a request or contact us. Tell us what task you need to solve and from what date you need our services. If your head office has accounting or reporting requirements, please send them to us.
2. **Provide information for a proposal**\
We’ll send you a questionnaire and, if needed, discuss the details in a call: the representative office’s activities, whether it’s a permanent establishment and a VAT payer, accounting software, number of documents and employees, and how accounting areas will be divided between our team and your specialists. This helps us define the service format and fees.
3. **Review our proposal**\
You’ll receive a list of services, base volumes, fees and a start date. We’ll discuss your questions and agree on the terms.
4. **We sign the agreement**\
We send you a draft accounting services agreement with the agreed terms, in Ukrainian and English if needed. You review it and return it with comments or confirmation of your approval. We agree on the final version, sign the agreement and move on to planning our cooperation.

## Our process

After the agreement is signed, we provide our services in the following stages:

1. **Introducing the teams and planning our cooperation**\
Our team gets to know your team. We plan the handover of accounting records.
2. **Handover of accounting records**\
We receive documents, accounting databases, reports and the necessary access. We reconcile the balances handed over against the documents and accounting data (without carrying out an inventory count) and check the status of period-end closing. We record unfinished tasks and matters to clarify with the previous accounting team.
3. **Initial accounting setup**\
If your representative office is starting operations, we set up accounting from scratch: we fill in master data in the accounting software and set up the document workflow in line with the agreement.
4. **Setting up collaboration between the teams**\
On our side, we appoint responsible persons and define which processes each of them is responsible for. You also appoint responsible persons on your side and tell us which processes they are responsible for. We set up communication channels, the document transfer procedure and the reporting calendar in line with the agreement. With the head office, we follow the format and timing of accounting information set out in the agreement.
5. **Maintaining the accounts**\
We exchange documents and information with your team: we process documents, get clarifications and answer questions. We prepare information for calculating and paying salaries, payment documents and other agreed calculations.
6. **Period-end closing**\
We close the month, quarter and year, organize source documents for archiving and answer your questions about the results.
7. **Preparing and filing reports**\
We prepare and file tax returns, financial statements and statistical reports by the required deadlines. We provide accounting information at the head office’s request. If needed, we prepare additional reports and explanations on matters agreed with you.

If our cooperation ends, we hand over the accounting records to the specialist or team you designate on an agreed schedule and explain unfinished tasks and open issues.

## What you can expect

Depending on the agreed services, you’ll receive:

- Access to the accounting software where the representative office’s business transactions are recorded.
- Monitoring of the signs under which a representative office that doesn’t meet the definition of a permanent establishment may be recognized as a permanent establishment.
- Accounting registers: journal orders, trial balances and summary statements.
- Filed required reports: tax returns, financial statements and statistical reports, with receipts confirming their acceptance.
- Accounting information at the head office’s request.
- Reporting packages in the head office’s format, if you order this service.
- Payroll calculations and HR documents: payroll statements, payslips for employees, HR orders, timesheets and income certificates for employees.
- Organized source documents, processed and prepared for archiving.
- An agreed division of processes and responsibilities between your team and ours.
- Answers to your questions and advice on accounting, tax and HR matters when you request it.
- Information and documents prepared at the request of auditors or inspectors during an audit or tax inspection.

## Why clients choose UHY Prostir

We combine our experience in Ukraine with the international experience of the UHY International network to serve Ukrainian and international clients.

- Independence, integrity and objective professional judgment.
- In business since 2003.
- A member of UHY International, a global network of specialists in audit, tax and consulting: 340 offices in 95 countries and over 10,000 professionals.
- Doing business abroad: if you already have a business in another country or plan to open and grow one, we can assist by connecting you with our UHY International office in that country, where you can discuss registration, accounting, tax and audit matters.
- Remote collaboration where the nature of the engagement allows.
- Communication and document preparation in Ukrainian and English.

## Frequently asked questions

### Who on your side will be responsible for our project

A dedicated manager who coordinates all your matters. A team of our specialists provides the services together with the manager.

### How will we communicate with you

You send requests and documents by email to your manager and our team’s specialists, and confirm phone requests in writing. We sign documents with a qualified electronic signature (QES) through Vchasno, M.E.Doc or another agreed service. Our services are provided at our office in Kyiv, but our specialists can also provide them remotely, so we can work together even if your representative office is in another city. By agreement, we communicate and prepare reports in English.

### Do you provide services during power outages

Yes. Our servers are located outside Ukraine, so you only need an internet connection to access your accounting data. Our office has backup power that keeps computers and network equipment running for up to 24 hours, as well as the business center’s generator and our own generator.

### Do you provide services during air raid alerts

Yes. Our specialists provide services remotely and are based in different regions, including outside Ukraine. So whether or not there’s an air raid alert, you can email your request to your manager, and we’ll respond.

### How quickly do you respond to requests

We handle requests received before 1:00 p.m. by 6:00 p.m. the same business day, and requests received after 1:00 p.m. by 1:00 p.m. the next business day (Kyiv time). These times apply if you’ve provided all the necessary documents and information. If a request needs more time, we’ll let you know within the same time frames.

### Can you work in our accounting software

Yes, if its capabilities and the access provided allow us to deliver the agreed services. We have experience with SAP, SAP Business One, Microsoft Dynamics, Lawson and other systems.

### Where will our accounting data be stored

On the servers of the representative office or the head office, or on our servers. If accounting databases are hosted on our servers, backups are created automatically every day.

### What measures do you take to protect our confidential information

Under the agreement, all information we receive from you is confidential. Before you share documents, we can sign a nondisclosure agreement (NDA) with you. Only our specialists involved in your engagement get access to information, including employees’ personal data, after they sign NDAs.

### Do you carry out an inventory count at the start of our cooperation

No. The head of the representative office is responsible for carrying out the inventory count. We can take part in it by separate agreement.

### How do you account for a representative office that doesn’t meet the definition of a permanent establishment

We provide accounting services for funding from the head office, maintenance costs, property, settlements and payments to employees. We determine the set of reports based on the actual activity and tax status. We pay particular attention to ensuring that the documents correctly reflect the preparatory or auxiliary functions of the representative office: the mere absence of income isn’t enough to conclude that there’s no permanent establishment.

### Do you provide accounting information to the head office

Yes. At the head office’s request, we provide information from the representative office’s accounts kept under Ukrainian law. On separate request, we prepare reporting packages in the head office’s format.

### Do you provide VAT accounting services

Yes, for representative offices registered as VAT payers. These are usually permanent establishments. We prepare VAT returns and issue and register VAT invoices and adjustment calculations. If needed, we separately analyze VAT registration issues and the tax consequences of specific transactions.

### Will we be able to approve payroll calculations before salaries are paid

Yes. We provide preliminary calculations of salaries to the person you designate for review and approval. Who approves payroll, prepares payment files and makes payments is set out in the agreement.

### Do you assist during an audit

Yes, at your separate request. We prepare information and documents at the auditors’ request: accounting data, source documents, registers and breakdowns, and we explain the accounting approaches and figures. The audit opinion is issued by the independent auditor.

### Can we outsource only selected areas of our accounting to you

Yes. You can entrust us with a specific area, for example payroll or HR administration. When we sign the agreement, we determine who provides the source data, performs the calculations, reviews the results, makes payments and prepares the reports.

### What responsibility do you accept for errors

We’re responsible for the quality of the services provided within the terms of the agreement: the accuracy of the accounting entries, calculations, reports or findings we prepare based on the source documents and information you provide. We’re not responsible for the completeness and reliability of source documents, accounting data and management’s explanations of transactions, or for decisions and actions the representative office takes on its own.

### Can the agreement be terminated early

Yes. Either party can terminate the agreement by giving the other party written notice 30 calendar days before the desired date.

## Insights

Practical articles on audit, accounting, HR administration, reporting, payroll, tax and legal matters.

- [Outsourced Accounting for Gühring in Ukraine](https://www.uhy-prostir.com/en/our-cases-en/13-years-of-accounting-outsourcing-for-guhring-llc-in-ukraine/index.html.md): Case study: accounting, payroll, HR administration and management reporting for Gühring's official representative in Ukraine for over 10 years.
- [Sale of Representative Office Assets](https://www.uhy-prostir.com/en/blog-en/sale-of-representative-office-assets/index.html.md): Non-residents can open two types of representative offices in Ukraine, and the tax treatment of selling their assets differs. We explain the specifics. (2020-08-12)
- [How to Outsource Payroll](https://www.uhy-prostir.com/en/blog-en/how-to-outsource-payroll/index.html.md): Key aspects of payroll outsourcing Timely and correctly paid salaries are one of the main factors that can motivate your employees to work productively. (2021-10-28)
- [Accounting Outsourcing for LLCs](https://www.uhy-prostir.com/en/blog-en/accounting-outsourcing-for-llcs/index.html.md): Accounting outsourcing for LLCs has been a practical and effective tool for a long time that helps businesses reduce costs, avoid tax risks, and receive stable professional support without the need to employ an in-house accountant. (2025-11-29)

## Contacts

- Email: hello@uhy-prostir.com
- Address: 14 Vasylkivska St., STEND Business Center, office 315, Kyiv
- Request a proposal: https://www.uhy-prostir.com/en/contacts/#contact-form