Letter of Guarantee for Providing a Legal Address in Kyiv
When registering a company in Kyiv, one of the first and most important steps is determining its location, or, as it is commonly called, the legal address. This is not just a formality for entry into the Unified State Register (USR). A legal address serves as the official channel of communication with government authorities, the tax service, banks, and business partners. All official correspondence, including court summons and tax notifications, will be sent to this address. Therefore, choosing it requires maximum responsibility.
If the newly created company does not have its own or rented office, a reliable solution is to obtain a letter of guarantee for providing a legal address. This document serves as proof for state registrars and regulatory authorities that the company has a legitimate basis to be located at the specified address.
What is a Letter of Guarantee and why is it needed?
A letter of guarantee for providing a legal address is an official document from the owner of a non-residential property, confirming their intention to enter into a lease agreement with the registering company after its official establishment. Simply put, it is a promise from a future landlord to “host” your company.
Although Ukrainian law does not explicitly include a letter of guarantee in the list of mandatory documents for registering an LLC, it is often requested in practice to verify the accuracy of information. This document minimizes the risk of registration refusal due to providing false information about the company’s location.
Main functions of the letter of guarantee:
- Confirmation of intent. The letter proves that the business founders have a prior agreement with the property owner.
- Protection against fictitious companies. For tax authorities, having such a letter indicates that the company is not a “shell” or “one-day” company.
- Basis for communication. Government authorities must be confident that the company can be reached at the specified address.
Key elements of a proper letter of guarantee
Although there is no legally mandated form for this document, business practice has developed certain standards. To ensure acceptance without questions, the letter should include:
- Information about the landlord (property owner).
- For a legal entity: full name, USR code, legal address, position and full name of the director.
- For an individual: full name, passport details, and taxpayer registration number.
- Information about the future company.
Example: “Limited Liability Company ‘Perspektyva’.” - Exact address of the property.
City, street, building number, block, office. - Guarantee of contract conclusion.
Key phrase confirming the owner’s obligation to enter into a lease (or sublease) agreement after state registration of the LLC. - Property characteristics.
Preferably, indicate the area and purpose (e.g., “non-residential office space”). - Date and signature.
Signed by the authorized person and stamped (if the legal entity has a seal).
A copy of the document proving ownership of the property (e.g., extract from the State Register of Real Property Rights) must be attached to the letter of guarantee. This removes any doubts about the landlord’s authority.
Who can issue a letter of guarantee?
The guarantor can be either an individual or a legal entity who owns the non-residential property. It is important that the property has a non-residential status and is suitable for an office.
Registering a company in a residential property, such as the founder’s apartment, is possible but carries risks, including public disclosure of the home address and potential visits from regulatory authorities.
Legal vs. actual address: differences and risks
Ukrainian law does not formally distinguish between “legal” and “actual” addresses. Article 93 of the Civil Code of Ukraine defines the location of a legal entity as the actual place of business activity or office from which daily management is conducted. By law, these addresses should coincide.
In practice, companies often operate at a different location than their registration address, which entails risks:
- Tax issues. If a tax inspector cannot find the company at its legal address during an audit, a record of absence may be entered into the USR.
- Cancellation of VAT registration. A record of absence can be a legal basis for annulment of VAT registration.
- Loss of important correspondence. All official letters, including tax inquiries, court summons, and claims from partners, are sent to the legal address. Failure to receive them does not exempt from responsibility but prevents timely response.
- Bank account blocking. Banks monitor clients, and a fictitious address can result in refusal of service or account blocking.
- Forced liquidation. In extreme cases, systematic absence at the registration address may lead to a court decision to terminate the company’s activities.