The state registration service for LLCs via the “Diia” mobile app or portal is positioned as fast, convenient, and free. However, beneath the simplification and automation of the process lie important legal and organizational nuances that can create difficulties after the LLC is registered. Let us consider the key disadvantages of this method of registration based on legal practice and the current legislation of Ukraine.

1. Limited Charter Template

When registering via the “Diia” portal, you can only use a model charter. This, in turn, makes it impossible to include non-standard provisions in the charter, such as:

• An individual procedure for profit distribution;

• A special procedure for the alienation of shares in the charter capital;

• Defining a specific quorum for general meetings to make decisions;

• The possibility for a director to work without concluding an employment contract;

• A special procedure for concluding significant transactions and “interested party” transactions, etc.

Consequently, if the founders need to implement any of the above points, they will have to develop and register a new edition of the LLC charter, which will result in additional costs for notary services and registration fees.

2. Impossibility of Automatic VAT Registration

Registration via the “Diia” portal allows for the selection of only one of the typical taxation models (single tax or general taxation system) without submitting additional applications. For VAT payers, a separate registration procedure is required, which is not integrated into the “Diia” portal. Therefore, to register as a VAT payer, one must apply separately to the tax authorities, which complicates the procedure and risks the timely registration of the LLC as a VAT payer.

3. Technical Issues

A typical risk of using the “Diia” portal includes possible technical failures, freezes, duplication of applications, or the creation of an LLC with erroneous data (address, KVED codes, etc.). Correcting such errors requires separate appeals to technical support and cannot always be fixed automatically, necessitating a visit to a registrar or an Administrative Services Center (TsNAP), resulting in additional costs.

4. Restrictions on the Number of Founders

An LLC can be registered via the “Diia” portal with a maximum of 5 founders, which makes it impossible to create multilateral partnerships. If there are more than 5 founders, the standard LLC registration procedure is required.

5. Problems with the Legal Address

The “Diia” portal does not always correctly verify and register the legal address of the LLC. Incorrect reading or use of an address can trigger tax risks (signs of “fictitiousness”) or problems receiving mail, requiring a separate amendment to correct the error.

6. Restrictions for Foreigners

Registration via the “Diia” portal is unavailable for foreigners as it requires a “Diia.Signature” and a Tax ID (RNOKPP), which limits investment opportunities for the LLC.

Conclusion

Although registration of an LLC via the “Diia” portal appears at first glance to be a fast and free alternative to standard registration, it carries many risks and lost opportunities that will require greater time and financial expenditures for correction in the future. Therefore, instead of the templated “Diia” portal, it is worth choosing the standard registration procedure by consulting lawyers. This is not an additional expense, but a strategic investment in the legal security of your business.

An experienced lawyer will help to:

• Correctly draft a charter, providing mechanisms to protect the rights of participants and other necessary provisions;

• Account for corporate governance features that correspond to the real business model;

• Formalize constituent documents according to actual agreements rather than using standard templates;

• Avoid errors during the registration stage that could lead to legal disputes or the blocking of company activities.

As a result, you will receive not just a registered legal entity, but a full-fledged, stable, and legally protected foundation for the development of your business—free from risks and unpredictable problems.