- You really can register an LLC through Diia yourself in half an hour.
- The model articles are the same for everyone: they know nothing about your partners, an investor or the director's salary.
- You can switch to your own articles at any time, but it's simpler to decide before registration.
People often ask me: why pay a lawyer to register an LLC when you can do it yourself through Diia in half an hour?
It's a fair question. You really can do the registration itself. But the point isn't the “register” button; it's what you choose before you press it.
What you really can do through Diia
Through Diia you can register an LLC online: fill in the application, choose activity codes, list the founders and shares, and sign everything with an electronic signature. The company appears in the register quickly, with no queues.
Diia also offers to run the company on the model articles. These are standard articles approved by the Cabinet of Ministers, the same for every company that chooses them.
What the model articles are
The model articles are convenient because you don't have to write them. The register simply notes that the company operates on their basis.
But they're written “for everyone”, which means for nobody in particular. They don't know how you and your partner split profits, who decides when the votes split down the middle, or what happens if someone wants to leave.
Where the model articles tie your hands
Problems most often arise in four situations.
The director and salary. The model articles include a director's post. As soon as you appoint yourself, you have an employment relationship with your own company, and with it the obligation to pay a salary and taxes even before the company earns anything. I explained how to avoid this in the article an LLC can pay 5% too.
Several founders. Two friends open a business 60/40, and the one with 40% becomes director. A year later he vanishes with the access, and the partner with the bigger share can do almost nothing. The model articles don't provide for this. More in the article investors and partners without a contract.
An investor. An investor will want to see rules for entry, exit and protecting their share. The model articles don't contain them, and negotiations will start with rewriting documents.
A member leaving. How to value the share, when to pay it out, whether the other members have the right to buy it first. All of this is best decided in advance, while you're still friends.
When the model articles are enough
If there's one founder, the company is small and doesn't plan to bring in partners or an investor, the model articles are often enough. Then the key is to get three things right:
- activity codes, so the company can work with the right clients;
- the tax system, so you don't overpay from the first month;
- the director, so no unnecessary salary obligations appear.
How to switch to your own articles later
You can switch at any time: the members adopt a decision approving their own articles, and they're registered as registration changes. With several founders, I advise signing a shareholder agreement together with the articles.
But it's simpler to do it straight away. Switching in the middle of a conflict requires the consent of the very partner you're in conflict with.
In short
Pressing the button in Diia is easy. Making sure you don't have to redo anything or lose money six months later is a different task. If you don't want to guess with activity codes, taxes and articles, here's turnkey LLC registration in Lviv. And if you're still choosing a business form, start with the article sole proprietor or LLC.
Frequently asked questions
Can the model articles be replaced with your own after registration?
Yes. The members adopt a decision approving their own articles, and they're registered as changes. You can do it any time, but better before disputes begin.
Do the model articles work if there's one founder?
Often yes. You just need to decide on the director: if you appoint yourself, there's an employment relationship and an obligation to pay a salary.
How much does turnkey LLC registration cost?
From €150. State registration itself is free; you pay for preparing the articles, activity codes and taxes for your business.
This article is general in nature and is not legal advice. Every situation has its own nuances.
