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How to open a individual-entrepreneur in Ukraine: everything you need to know before starting your own business

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How to open a individual-entrepreneur in Ukraine: everything you need to know before starting your own business

The process of starting a business in Ukraine is quite simple, but it requires a comprehensive approach with the smallest details taken into account. Find out what you need to start a IE in Ukraine and how to do it the easiest way possible

Legal assistance in starting a business in Ukraine
Legal assistance in starting a business in Ukraine
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The process of starting a business in Ukraine requires a comprehensive approach that includes organizational, economic and legal components. After all, at first glance, an insignificant detail can not only hinder the development of your own business, but also lead to financial losses and more serious legal problems. Therefore, when planning to start your own business, you need to take into account all the details. 

It is worth noting that in recent years, the number of entrepreneurs who turn to specialists when starting a new business has increased significantly, as it is often almost impossible to take into account all aspects on your own without legal education and practice.


What you need to consider and how to start a individual entrepreneur in Ukraine is described below. Read here how to add your business to Google maps.


Starting a individual entrepreneur in Ukraine: where to start?


First and foremost, you should focus on choosing a line of business and developing a business idea. Economic areas are the basis for choosing an official type of economic activity, which must be specified when registering a business in accordance with the Classifier of Economic Activities (NACE).


After choosing a NACEs, you need to decide on the taxation system and select a group of single tax payers for a sole proprietorship.

Currently, Ukraine has two taxation systems: the general and simplified taxation systems: 

▶︎ The general system is suitable for large enterprises with a large number of employees and significant income and expenses, any type of business is allowed, and the tax amount is determined by a percentage of the net profit for the month.

▶︎ The simplified taxation system is optimal for small businesses with relatively small revenues and a small number of employees. Entrepreneurs under this system pay a single tax (ST) - a fixed amount or a percentage of income.


An important step is to understand and determine the organizational and legal form for your business. Here, you need to analyze which form (individual entrepreneur "IE" or limited liability company "LLC") is more appealing to you based on your own business vision. Because these are the most common forms of doing business in Ukraine.


How to open a individual entrepreneur: where to go?


Currently, the process of registering a sole proprietorship in Ukraine has become quite simple thanks to the services of various government online services. To register as a sole proprietor, you need only two documents: a passport and a Individual tax number (TIN). Any citizen of Ukraine aged 16 and older can open a sole proprietorship. This can be done both by visiting the Administrative service center (ASC) and online.

The procedure for registering a sole proprietorship in Ukraine is set out in the Law of Ukraine "On Registration of Legal Entities and Individual Entrepreneurs".


Typically, the registration process looks like this:

1. Select the NACEs and the single tax group (ST) for conducting business activities.

2. Submit an application for registration and transition to the single tax (if necessary).

3. Obtain an extract at the Administrative Services Center (ASC) in Ukraine or using the online service.

4. Submit an application to the State Tax Service (STS) for an extract from the register of STS payers within 10 days after receiving the extract from the ASC.

5. 10 days after submitting the application, receive a ready-made extract from the State Tax Service.

6. Generate an electronic digital signature (EDS) online or obtain it from an accredited key certification center.

7. Open an account in any bank convenient for you.




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How to open a sole proprietorship using the Diia app?


The most comfortable and modern way to register a sole proprietorship is through the Diia website or mobile application.

To register, you need to open the Diia website and log in to your personal account. To do this, scan the QR code in the mobile application of the same name or log in using an electronic digital signature (EDS). It can be created quickly, free of charge and remotely in some banks.

Next, go to the page where you register as a sole proprietor. Click the "Submit an application" button, enter all the requested information in the form, and indicate the type of taxation. Submit the application for verification. If all the information is correct, you will receive a notification about the registration of the sole proprietorship in your Diia personal account and in your e-mail box after a certain period of time. In addition, you will have access to an extract from the Unified State Register (USR) in your personal account. This extract has the same legal force in both printed and electronic form.


How to open a sole proprietorship through an ASC or a state registrar?


Fill out an application for registration of a sole proprietorship and make an appointment at the ASC or state registrar. The registration service is provided at the place of residence.

At the ASC, show your passport and original TIN, submit a pre-prepared application for registration of a sole proprietorship, and write an application for switching to the simplified taxation system, if you need it. Within about 12-24 hours after submitting the documents, an extract from the Unified State Register will be available.


The algorithm of registration at the state registration office is similar to the ASC: come with the package of documents described above, fill out an application and submit it to the registrar, after which you will be able to get an extract from the USR.


If you don't want to spend time on the sole proprietorship registration process on your own, you can take the help of lawyers. Lawyers will answer all your questions about starting a sole proprietorship, its further operation and legal support, ensure that the application for registration is filled out correctly and that you receive an extract from the Unified State Register. This is much faster, more convenient, and most importantly, safer, because in order to register a business correctly, you need a full understanding of the legal aspects.


You can order a legal consultation or full legal support for starting and running a business in Ukraine on the Visit Ukraine website. Our specialists provide comprehensive business registration services in Ukraine for Ukrainians and foreigners.


We remind you! A large number of foreigners are interested in starting a business in Ukraine, even though the country is still at war. Read more about the main features and benefits of registering a business in Ukraine for foreign nationals and stateless persons in our previous article.


Want to know more? Read the latest news and useful materials about Ukraine and the world in the News section.




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