Paying For Own Representative Office: A Three- Prospective View

Ukrainian lawmakers technically distinguish representative offices in Ukraine from their parent entities under a foreign jurisdiction. In this connection, relevant literature views Ukrainian representative offices as being almost independent players in the legal relations. However this is not the case: the interim status of structural units of economic entities entails a number of distinctions of the status of representative office as compared to the status of the principal management bodies of the parent economic entity ("head office"). These distinctions become sensible in the links between the representative office and the head office. One such "transacting" link is the head office’s financing of the representative office’s costs expenses. Several approaches may be applied to such transaction, and the very differences between them shall raise difficulties in applying the respective provisions in Ukrainian law.