How to open a private entrepreneur in Ukraine: a complete guide for entrepreneurs

In our article we will share with you step-by-step instructions on how to open a private entrepreneur in Ukraine. You've probably wondered: "What is FOP?" Everything is simple and clear: FOP is a Physical Person - an Entrepreneur, that is, a private person who independently engages in entrepreneurial activities. Sounds tempting, right? Now that we have clarified this small point, we can move on to the most interesting part - the steps that need to be taken to open a private entrepreneur in Ukraine. What other nuances will we consider? Read on! 🔥

Glossary

• Individual Entrepreneur: Individual entrepreneur. This is a form of entrepreneurial activity in Ukraine, where an individual carries out entrepreneurial activity in his own name.

• KVED: Classifier of types of economic activities. This is a system of codes that determine the types of economic activities conducted by individual entrepreneurs. Choosing the correct KVED is an important step when registering a sole proprietor.

• KVED for an online store: KVED code corresponding to the type of economic activity associated with the sale of goods or services through an online store.

• Single tax payer group: A classification system for single tax payers in Ukraine, which determines restrictions and tax rates for individual entrepreneurs depending on their income and type of activity.

• Individual Entrepreneur Registration: The process of official registration of an individual entrepreneur in Ukraine. Includes submitting documents to the relevant authorities and obtaining a certificate of individual entrepreneur.

• Individual entrepreneur in Diya: Diya online platform, which provides the opportunity to electronically register individual entrepreneurs and perform further actions with their documents and taxes.

• State registrars: Relevant state bodies that carry out registration of individual entrepreneurs in Ukraine and issue certificates of individual entrepreneurs.

• Opening a sole proprietorship through a notary: An alternative way to register a sole proprietorship in Ukraine, which includes contacting a notary to draw up the relevant documents.

• Tax payment and reporting: Responsibilities of individual entrepreneurs to pay taxes and submit regular reports to the relevant authorities.

• Minimum wage (MW): The legally established amount of remuneration for the monthly (hourly) work standard performed by an employee in Ukraine.

These are just a few key terms that you may encounter during the process of opening a sole proprietorship in Ukraine. Familiarization with this glossary will help you better understand the topic and understand these terms when they appear in the text of the article.

How to open a private entrepreneur in Ukraine: everything you need to know!

What is FOP and why is it important?

FOP (individual entrepreneur) is a legal form of business in Ukraine. This means that you can officially register your business and start trading or providing services on the market.

Individual entrepreneur status allows entrepreneurs to reduce risks and work in accordance with the law. Moreover, this allows you to work transparently, pay taxes and avoid fines from the tax office.

What will you need to open a private entrepreneur?

First of all, you will need the following documents:

1. Passport.
2. Taxpayer Identification Number (TIN).

Based on the information from these documents, you will be able to fill out an application for registration of a private entrepreneur and transition to a simplified taxation system.

If you live in temporarily occupied territory or are an internally displaced person (IDP), you will also need a migrant certificate.

How to choose a taxation system and a single tax group?

Choosing a taxation system is one of the key points when opening a private entrepreneur. If you do not want to spend a lot of time on reporting, you should choose a simplified tax system.

When registering a private entrepreneur, be sure to submit an appropriate application for the transition to a simplified taxation system. If there is no application, you will automatically be registered on the general system.

It is also important to decide on a single tax group, which will determine the tax rate depending on your activity. There are several groups, including a group for IT professionals and freelancers, as well as groups for various types of production and services.

What other nuances should be taken into account?

Opening a private entrepreneur is a responsible step, and you must take into account all the nuances. Let's list some aspects of your upcoming business activities.

Classification of economic activities

You should decide on the type of your activity and the corresponding classification. This will allow you to avoid unnecessary fines and pay taxes according to the established rules.

Accounting reporting

Accounting is mandatory for all self-employed entrepreneurs. You will have to regularly file reports and maintain records of income, expenses and tax obligations.

Tax deductions and benefits

Don't forget about the possibility of using tax deductions and benefits. They can significantly reduce your tax burden and make your business more profitable and comfortable.

Be careful when filling out all documents, follow the rules of the law, and your opening of a private entrepreneur in Ukraine will be easy and problem-free!

"Opening a private entrepreneur is a key step for officially registering a business in Ukraine. This process may seem complicated, but with the right documents and contacting the appropriate authorities, you can open your own company quite easily. Don’t forget about choosing a taxation system and a single tax group, as well as about accounting statements and tax deductions." - Professional consultant for registration of private entrepreneurs Ksenia Velichko, Ukraine

Selecting NACE codes: what is it and what nuances need to be taken into account?

Classifier types of economic activity, or KVED, is a set of codes that determine the direction of the entrepreneur's work. It is necessary for state financial and statistical institutions for reporting, as well as for systematizing information about entrepreneurs.

Each type of activity in Ukraine has its own unique KVED code, which consists of four digits. The format of the KVED code looks like this: section.group.class. For example, 12.34, where 12 is section, 12.3 is group, 12.34 is class.

When registering a private entrepreneur in Ukraine, an entrepreneur is required to indicate the appropriate KVED code that corresponds to his future activities.It should be noted that an entrepreneur can indicate an unlimited number of KVEDs, but the first registered code will be considered the main one.

Selecting the correct KVED number is an important step when registering a private entrepreneur. Wrong choices may result in penalties. Moreover, an entrepreneur does not have the right to receive income from activities for which the corresponding KVED code is not indicated. Therefore, when choosing a KVED number, you should be careful and conscious.

It is advisable to register KVEDs with a focus on future prospects. This means that an entrepreneur can indicate in the registration codes related to the types of activities that he may be engaged in in the future. This approach will help to avoid additional costs and difficulties if it is necessary to expand activities.

Using the example of an online store, let's consider the process of choosing a classifier of economic activity. The main NACE code for an online store is 47.91, which corresponds to “Retail trade by mail or online order.” In the future, it’s better not to limit yourself to just this classifier, and here’s why.

Additional KVEDs can be useful if an entrepreneur plans to expand the activities of an online store. For example, KVED 46.19 “Activities of intermediaries in the trade of a wide range of goods” or KVED 46.42 “Wholesale trade of clothing and footwear.” Thus, by indicating additional KVEDs, an entrepreneur can prepare for the possible expansion of his business.

When choosing a KVED code for an online store, you should also pay attention to market conditions and public opinions. Conduct market research and identify the needs and preferences of your target audience. This will help determine the correct classifier and select the most promising KVED codes.

Despite the abundance of options for choosing KVEDs, remember that the main activity of your online store must correspond to the main KVED code! Additional codes help to more accurately determine the type of your business activity.

🔥 Review: best practices for choosing KVED for an online store

• Use the main KVED code corresponding to retail trade by mail or online order (47.91).
• Consider specifying additional KVEDs related to expanded store activities, such as 46.19 (Activities of intermediaries in the sale of a wide range of goods) and 46.42 (Wholesale trade of clothing and footwear).
• Conduct market research and identify the needs of your target audience in order to select promising KVED classifiers.
• Please pay attention to updates and changes in legislation regarding KVED codes.

Conclusions: take into account all the nuances when choosing KVED codes

Choosing KVED codes is the main stage when opening a private entrepreneur in Ukraine. Entrepreneurs should be careful and conscious when choosing classifiers to avoid penalties and the need for changes in the future. Indicate the main and additional KVEDs, taking into account the prospects for expanding your business, and conduct market research to make the right and informed decision.

Types of groups of single tax payers

Taxation for entrepreneurs who decide to open a private entrepreneur in Ukraine depends on the choice of the group of single tax payers. Each group has its own characteristics and determines the amount of tax payments, as well as the level of reporting. The decision to select a group is made by the entrepreneur himself, based on his activities and compliance with certain criteria.

What types of groups of single tax payers exist and what opportunities do they provide?

Group 1

This group is intended for entrepreneurs who work without employees and their annual income does not exceed an amount equivalent to 167 minimum wages (MW), which is 1,185,700 hryvnia. Entrepreneurs from this group can engage in retail trade and provide household services to the population.

Group 2

Entrepreneurs who choose group 2 can have up to 10 employees and their annual income should not exceed 834 minimum wages or 5,921,400 hryvnia. In this case, the entrepreneur can engage in the production and sale of goods, as well as provide services to the population.

Group 3

Group 3 provides entrepreneurs with the opportunity to have an unlimited number of employees and an annual income that should not exceed 1,167 minimum wages or 8,285,700 hryvnia. Within this group, entrepreneurs can engage in the production and sale of goods, as well as provide services to any person or organization.

Group 4

Entrepreneurs engaged in farming activities can choose group 4. In this case, their capabilities and limitations will differ from other groups. These entrepreneurs are subject to certain rules and specifics related to farming activities.

Selecting a single tax payer group is an important step when opening a private entrepreneur in Ukraine. Entrepreneurs must take into account all their needs, capabilities and plans for developing their business when making such a decision.

🔥 Review: what to choose?

We offer an overview of the information table, which allows you to understand which particular group of single tax payers may be most suitable for you in accordance with your needs and goals.

Attention! The cost, level of tax rates and restrictions on the annual income of a private entrepreneur are indicated as reference information as of 2024, it is important to understand that they change every year, depending on the minimum wage in the country and on innovations in the legislation of Ukraine .

It should also be noted that group 4, intended for farming, has its own characteristics, which should be learned in more detail from specialists in this field.

When choosing a single tax payer group, you must consciously make a decision based on the expected results and goals of your business. Consult with experts and get the necessary support to choose the right group and successfully open a sole proprietorship in Ukraine!

Expert tip: "When When choosing a group of single tax payers, pay attention to your current needs and the expected development and plans of your business in the future. The group should meet your goals and provide convenient conditions for running and developing business." - Dmitry Pavlyuk, business tax specialist, Ukraine

Registration of a private entrepreneur in Ukraine: choosing a convenient method

Registration of an individual entrepreneur (individual entrepreneur) in Ukraine - this is an important and responsible step for those who want to start their own business. The good news is that today there are several ways to open a sole proprietorship, including online registration through the popular service "Diya". In this article we will talk about the various options for registering a sole proprietor and we will help you choose the most convenient and effective method.

How to open a private entrepreneur in Diya?

The most modern and convenient way to register a private entrepreneur is to use the "Diya" service. This is an online platform designed to provide government services online.We will list step by step the steps that must be followed to open a private entrepreneur in the Diya application.

1. Log in to your personal account on the Diya website. To do this, you can use the Diya application on your smartphone or get an electronic signature from the bank.

2. Go to the FOP registration page in your personal account. There you will find detailed information on how to fill out the application and choose your tax type.

3. Submit an application for registration of a private entrepreneur. After this, your application will be checked by government authorities, and if the data is correct, after a while you will receive a message about the registration of a private entrepreneur.

4. In your personal account on the Diya website you can also receive an extract from the Unified State Register (USR). It is legally binding and can be used in printed or electronic form.

Registration of a private entrepreneur in Diya is fast, convenient and free!

The service provides ample opportunities - you can get all the necessary documents and certificates in one place:

State registrars

If you prefer offline registration, you can use the services of state registrars. They are authorized persons who accept and process documents for registration of a private entrepreneur. You can find state registrars in the "Centers for Administrative Services" (TSNAP), accredited subjects of state registration and local governments.

Let's list the steps you need to follow to open a private entrepreneur through the state registrar.

1. Make an appointment with a specialist at the CNAP or an accredited state registration entity. To do this, you can use the website or make an appointment by phone. If there is no TsNAP in your locality, then you can find accredited subjects of state registration on the website of the Ministry of Justice of Ukraine.

2. Come to the CNAP or an accredited subject of state registration with your passport data and TIN. Fill out an application for registration of a private entrepreneur and, if necessary, transition to a simplified taxation system.

3. After submitting your application, expect an extract from the Unified State Register to be issued. Within 24 hours after submitting your application, you will be provided with an extract from the Unified State Register confirming the registration of your individual entrepreneur.

Registration of a private entrepreneur through the state registrar is also an easy and affordable way to open your own business enterprise.

Opening a sole proprietorship through a notary

If you cannot use any of the methods described above for registering a sole proprietorship, it is possible to open a sole proprietorship through a notary. However, it is worth considering that this method is paid.

If you decide to open a private entrepreneur through a notary, you will need to pay a service fee of about 1000 hryvnia. In turn, the notary guarantees the correctness of filling out the application and provides advice on all issues of opening a private entrepreneur.

Despite the fact that using a notary is an additional financial burden, some entrepreneurs consider this the most convenient option and appreciate the help and expertise of a notary in the process of opening a private entrepreneur.

🔥 Overview: services offered and details of each method, to make an informed decision

Select a suitable option for registering a private entrepreneur, taking into account all your needs and convenience. We recommend that you become more familiar with the services offered and the details of each method in order to make a thoughtful and informed decision.

The most convenient way to open a private entrepreneur for many entrepreneurs is online registration through the "Diya" service . It provides an opportunity to quickly and freely obtain all the necessary documents. However, the choice is yours. Think about which method of registering a private entrepreneur will be the most convenient and effective for you.

Conclusions: choose the desired option for registering a private entrepreneur in Ukraine!

Registration of a private entrepreneur in Ukraine is the main step on the right path to developing your own business. In this article, we looked at different ways to open a private entrepreneur, including online registration through the Diya service, offline registration through state registrars, and registration through a notary.

The choice of private entrepreneur registration method depends on your preferences and convenience. Online registration through "Diya" is the most modern and convenient option, state registrars provide the opportunity to register a private entrepreneur offline, and using a notary is a paid method that requires additional costs.

Tax payment and reporting for self-employed entrepreneurs in Ukraine

When you have successfully registered a sole proprietorship in Ukraine, it is time to fulfill the responsibilities associated with paying taxes and submitting reports. In this article, we will tell you what taxes are levied on self-employed entrepreneurs, the different tax brackets and the corresponding reporting requirements.

Basic taxes paid by individual entrepreneurs

Every individual entrepreneur is required to pay two main types of taxes: a single tax and a single social contribution. In addition, a third group individual entrepreneur may also be required to pay value added tax (VAT).

Individual entrepreneur taxation groups and their corresponding tax rates

There are three groups of individual entrepreneur taxation in Ukraine, and each of them has its own characteristics in terms of tax payment and reporting :

1. Individual entrepreneur of the first group: such an individual entrepreneur is obliged to pay monthly 10% of the cost of living for an able-bodied person (currently this is 302.80 hryvnia per month ) and pay quarterly 4686 hryvnia of the single social contribution (USC). In addition, individual entrepreneurs of the first group must submit a tax return annually.

2. FOP of the second group: payers of this group have the same responsibilities as FOP of the first group, but the amount of the single tax is 1420 hryvnia.

3. Individual entrepreneur of the third group: entrepreneurs of this group pay 5% of income as a single tax and 4686 hryvnia as a single social contribution every quarter.

Attention! The cost, level of tax rates and restrictions on the annual income of a private entrepreneur are indicated as reference information as of 2024, it is important to understand that they change every year, depending on the minimum wage in the country and on innovations in the legislation of Ukraine .

Frequency of tax return submission

Tax declarations for individual entrepreneurs are submitted in accordance with a certain schedule: for the first quarter, half a year, nine months and a year of activity. At the same time, individual entrepreneurs of the first and second groups must also submit a tax return annually.

Preferential tax rate

During the war, individual entrepreneurs have the opportunity to choose a preferential tax rate, which is 2%. This option is available to entrepreneurs who registered before a certain date and are located in a certain zone, red or yellow.

Documents and deadlines for submitting reports

It is important to understand that paying taxes and submitting reports requires the preparation of relevant documents and compliance with certain deadlines. For example, tax returns must be completed and filed within specified deadlines.

The importance of correct accounting and payment of taxes

Proper execution of tax payment and reporting obligations is important not only from the point of view of legal compliance, but also to ensure financial stability your business. Late or incorrect payment of taxes can lead to fines and problems with the tax service.

Conclusions and recommendations

Tax management and reporting for individual entrepreneurs in Ukraine are important aspects of successful business activities. Due care must be taken to prepare documents, complete tax returns and meet deadlines. Contact professional advisors and keep accurate records to avoid potential problems and ensure the financial stability of your sole proprietor.

"Paying taxes and submitting reports is an integral part of business activity. Organize your work in accordance with legal requirements to avoid fines and problems with the tax service." - Head of the Committee on Finance, Tax and Customs Policy Daniil Getmantsev, Ukraine

What to do?

• Carefully study the laws and requirements in the field of taxation of self-employed entrepreneurs.
• Find out about existing preferential tax rates and the conditions for their application.
• Complete and submit your tax returns on time!
• Seek professional help if you're having trouble understanding the tax process.

What not to do!

• Don't leave everything to the last minute. Paying and reporting taxes takes time and care.
• Do not ignore changes in legislation and requirements of the tax service of Ukraine.
• Don't forget about your tax obligations, otherwise you will face fines and problems with regulatory tax authorities.

Paying taxes and submitting reports is an integral part of business activity in Ukraine. Organize your work efficiently, taking into account all legal requirements, to avoid fines and problems with the state tax service. Seek professional help if you're having trouble understanding the tax process!

New Balance expertise

Description of the client and his business

New Balance is a world leader in the production of branded sports shoes and apparel. It was founded in 1906 and today is one of the most famous and recognizable brands in the sporting goods industry. New Balance considers its top priority to create high-quality and comfortable products for its customers.

Goals and objectives

The main goal of New Balance was to expand its presence in the Ukrainian market and increase sales volumes. The company sought to create brand awareness among local consumers and establish strong relationships with partners in the market. The prospects for transparent online business in Ukraine provide good opportunities for the growth of private entrepreneurs. Anyone who strives to develop their business can, if desired, become a LLC - “Partnership with Interconnected Responsibility”, as the New Balance company did in Ukraine.

Statement of the main problem

The main problem of New Balance was the lack of a clear promotion strategy in Ukraine. The company realized that without effective marketing and positioning of its products, it would not be able to gain trust and attract local consumers.

Description of the target audience

The target audience of "New Balance" in Ukraine included people actively involved in fitness and sports, as well as those who value comfort and quality choosing sportswear and shoes. These were both young people and adults living in big cities and striving for a healthy lifestyle.

Key points that may be of interest to potential clients

• High-quality sportswear shoes and clothing created using innovative technologies and materials.
• A variety of models and styles, allowing you to choose the best option for each sport.
• Wide selection of sizes, including unique models for people with non-standard leg measurements.
• A brand with a rich history and a global reputation you can rely on.

Facts, data and results of the project

Thanks to an integrated marketing approach, New Balance was able to significantly increase its market share in Ukraine. The company actively used digital marketing tools such as contextual advertising, social networks and affiliate programs. This allowed us to attract new customers, increase brand awareness and significantly increase sales volumes.

As a result of New Balance's work, it was possible to establish strong partnerships with leading sports stores in Ukraine, which gave them the opportunity to expand distribution and provide customers with better access to the company's products.

Joint participation in sporting events and sponsorship programs have also become effective tools for strengthening the brand’s position in the Ukrainian market.

New Balance was able to achieve impressive results in Ukraine, increasing sales by 30% and strengthening its presence in the country through an effective marketing strategy and quality products.

Conclusions

This case became an example of the successful promotion and development of the New Balance company in Ukraine. The company's results clearly demonstrate the need for a clear marketing strategy, taking into account the interests and needs of its target audience.

🔥 Video: new product from the New Balance brand!

🔥 Frequently asked questions on the topic: "How to open FOP in Ukraine: step-by-step instructions for entrepreneurs!"

Thanks for reading, you're now a true expert!🔥

Congratulations! Now you have all the necessary knowledge to open a private entrepreneur in Ukraine! With us, you learned what FOP is, studied all the main steps to open it and specific nuances that should be taken into account for the future.

You have become a professional in this field and endless entrepreneurial opportunities open up for you. Your business will rise to new heights to make all your dreams come true!

Do not forget that with a private entrepreneur in Ukraine certain obligations also come. With your acquired knowledge, they no longer pose any difficulty for you, you are ready for new challenges and know that you can successfully overcome any obstacles on your way!

We thank you for your time and are sure that our article helped to understand in detail the area of opening a private entrepreneur in Ukraine. Now you can share your knowledge with other entrepreneurs and help them succeed.

Don't forget to update your skills and keep up with changes in legal regulations so that you stay up to date with the latest developments and reach even greater heights in your business.

Are you ready for new opportunities? Ukrainian entrepreneurship is waiting for you! Good luck on your path to success!💥