Registering a factoring company is not simply a matter of setting up a limited liability company (LLC), but rather of obtaining the right to provide factoring services, for which a licence from the National Bank of Ukraine is required. Following the dissolution of the National Commission for Financial Services, the NBU became the sole regulator of the non-bank financial services market, and since 1 January 2024, the Law of Ukraine ‘On Financial Services and Financial Companies’ No. 1953-IX has been in force, which sets out the procedure for authorising financial companies and the requirements applicable to them. Factoring is the financing of a monetary claim in return for the assignment of that claim, and only an institution that has obtained the relevant licence may provide such a service on a permanent basis.
In practice, the difficulty lies not in registering a legal entity, but in obtaining authorisation from the NBU. The regulator has set out detailed requirements regarding the financial standing of the institution and its founders: it is necessary to confirm the business reputation of the owners, a transparent ownership structure and the sources of funds used to form the authorised capital, which, moreover, must consist exclusively of cash. There are also requirements regarding premises, software, internal regulations (financial monitoring, risk management) and the qualifications of senior management. A single error or an incomplete set of documents is enough for the NBU to return the application or reject it.
We provide a turnkey factoring company registration service: we establish a legal entity, prepare a complete set of documents in accordance with the NBU’s requirements, draw up internal regulations and support the authorisation process through to the granting of the licence.
+38 095 554-54-24 — advice on registering a factoring company.
What is required to register a factoring company
To obtain a financial company licence for factoring, you must ensure:
- authorised capital in the prescribed amount, consisting exclusively of cash;
- verified and lawful sources of the founders’ funds;
- a transparent ownership structure with disclosure of the ultimate beneficial owners;
- an impeccable business reputation of the owners and directors;
- premises, equipment and software for recording transactions;
- internal documents: financial monitoring rules, a risk management system and accounting policies.
Stages of registration and authorisation
The process consists of several sequential steps:
- structuring: selection of the organisational and legal form, agreement on the ownership structure;
- state registration of the legal entity and formation of the authorised capital;
- drafting of internal regulations in accordance with the NBU’s requirements;
- preparation and submission of a package of documents for authorisation (licensing) to the NBU;
- support during the application review process, addressing the regulator’s queries and comments;
- obtaining a licence and commencing operations.
Before launching a business model, it is advisable to check that it complies with regulatory requirements and assess tax risks — in effect, to carry out legal due diligence.
Important change: the new Law ‘On Factoring’
The factoring market is awaiting regulatory updates: a separate Law of Ukraine ‘On Factoring’ No. 4466-IX has been adopted, which brings the sector into line with international standards and is due to come into force in 2026 (alongside amendments to the Civil Code). It clarifies the concept of factoring and the content of factoring agreements, and distinguishes between trade factoring and the assignment of claims arising from consumer loans. Consequently, registration and licensing requirements may change — we verify the current procedures on the date of submission to ensure the application package immediately complies with the regulations in force.
When do you need a lawyer, and when not?
Let’s be frank: if you have your own strong in-house legal team with experience of obtaining authorisation from the NBU, you can prepare the application package yourself. But for most companies entering the market for the first time, professional support pays off: the regulator’s requirements are detailed, and every time an application is returned, weeks are lost. You need a lawyer when the ownership structure is complex, there are foreign founders, you need to verify the sources of funds, or your business model combines factoring with other financial services. We do not try to ‘sell’ our support where it is not needed, but we warn you in all honesty: NBU authorisation is not a process worth experimenting with.
How we work
- we analyse the business model and ownership structure, and assess the risks associated with authorisation;
- we register the legal entity and assist with the formation of the authorised capital;
- we draft internal regulations in line with the NBU’s requirements;
- we prepare and submit the licensing application package;
- we address the regulator’s enquiries until the licence is granted;
- we advise on ongoing operations and reporting to the NBU.
What risks does a company face if it operates without a solicitor?
The first risk is submitting an incomplete application and having it returned, wasting weeks. The second is failing to properly verify the source of funds and having the application rejected due to non-compliance with the requirements regarding the financial standing of the founders. The third is to draw up internal regulations merely ‘for the sake of it’, which do not meet financial monitoring requirements, and face enforcement measures from the NBU after the business has already started. The fourth is to fail to take into account the new requirements of the Law ‘On Factoring’ and build a model that contravenes current regulations. In the financial sector, the cost of such mistakes is not only time but also the risk of regulatory sanctions.
Cost of services (registration of a factoring company)
| Service | Price |
|---|---|
| Consultation on business model and risk assessment | from 1,500 UAH |
| Legal opinion / audit in accordance with NBU requirements | from 5,000 UAH |
| Registration of a legal entity and drafting of documents | from 5,000 UAH |
| Preparation and support of the application package for NBU authorisation | negotiable |
| Comprehensive ‘turnkey’ support | from 30,000 UAH |
The cost of full support depends on the ownership structure, the presence of a foreign element and the volume of internal documentation; it is therefore determined on a case-by-case basis following an assessment of the project. Related areas — bank factoring, recourse factoring and legal support for financial companies — are handled by the same practice.
Questions and answers (registration of a factoring company)
Is it possible to provide factoring services without a licence?
No. Factoring is a financial service, and it can only be provided on a permanent basis after a financial company has obtained a licence from the NBU. Systematic operation without a licence entails liability.
Which authority licences factoring companies?
The National Bank of Ukraine. Following the dissolution of the National Commission for Financial Services, the NBU is now the regulator of the non-bank financial services market and issues licences under Law No. 1953-IX.
How is the authorised capital formed?
Exclusively in cash. In addition to the amount, the NBU verifies the legality of the sources of these funds held by the founders.
What are the requirements for the company’s owners?
An impeccable business reputation, a transparent ownership structure with disclosure of ultimate beneficial owners, and verified sources of funds. Failure to meet these requirements is a common reason for rejection.
How long does registration and licensing take?
Registering a legal entity is quick, but authorisation by the NBU takes longer and depends on the completeness of the application and the regulator’s requests. We provide exact timelines after assessing the project.
What changes does the new ‘Factoring Act’ introduce?
Act No. 4466-IX clarifies the concept of factoring and the content of the agreement, and distinguishes between trade factoring and the assignment of consumer loans. It will come into force during 2026, so we check the requirements as at the date of submission.
Can factoring be combined with other financial services?
To some extent. Some services are compatible under a single licence, whilst others are not (for example, trade factoring and the assignment of consumer loans are treated separately). The model must be verified in advance.
Are separate internal documents required?
Yes. Mandatory financial monitoring rules, a risk management system, accounting policies and other provisions that comply with the NBU’s requirements.
Can foreign nationals be founders?
Yes, but this complicates the verification of the ownership structure and sources of funds. Such projects require more thorough preparation of the application package.
How much do your services cost?
From 1,500 UAH per consultation; full support is priced on a case-by-case basis, depending on the complexity of the project. We will quote an exact amount after analysing the business model.
Contact a solicitor at Svarog regarding the registration of a factoring company
Describe your business model and ownership structure — we will assess the risks involved in obtaining authorisation, draw up a roadmap and handle the registration of your factoring company until you receive a licence from the NBU. This area is handled by our legal support practice for financial companies.
Telephone: +38 095 554-54-24, +38 096 554-54-25 (Telegram, Viber, WhatsApp). Address: 7 Khoriva Street, Office 2, Kyiv (Podil). Opening hours: Mon–Fri, 9.00–18.00.