Starting a business in Ukraine has become easier for foreigners due to the simplification of the sole proprietorship registration procedure. However, in 2024, this is not a basis for obtaining a residence permit. Find out what rules apply and how to legalize your stay in Ukraine on the basis of doing business

Legal assistance on migration issues for foreigners in Ukraine

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Registration of Sole Proprietor/Private Entrepreneur is becoming an increasingly popular option for foreigners wishing to do business in Ukraine, given that Ukraine offers favorable conditions for entrepreneurial activity, including a simplified taxation system and affordable registration as an entrepreneur.

At the same time, the issue of legalization and obtaining a residence permit in Ukraine is a topical issue for persons wishing not only to conduct business but also to reside in the country. This process has its own requirements and peculiarities that are important to know at the initial stage.

We talked more about the peculiarities of registering a business for foreigners in Ukraine in our previous article.

Is it possible to open a sole proprietorship without a residence permit and vice versa: 2024 rules

Previously, foreigners who wanted to register a sole proprietorship in Ukraine were required to have a residence permit. This was due to the legislation requiring to indicate the official place of residence during registration in the column “Place of residence/place of location of the individual entrepreneur”. According to the interpretation of the state registrars, the applicant had to report the registered place of residence within the meaning of the Law “On Freedom of Movement and Free Choice of Residence in Ukraine” of 11.12.2003 No. 1382-IV, which in turn required a temporary residence permit. In other words, foreigners could not open a sole proprietorship in Ukraine without obtaining a residence permit.

However, the situation has changed. Now, for registration, foreigners do not need a residence permit, and the address of their location can be confirmed by other documents, such as a lease agreement for real estate located in Ukraine. This greatly simplifies the registration process and cooperation of Ukrainian companies with foreign nationals as individual entrepreneurs. In 2024, the processes of registering a foreigner as an individual entrepreneur and obtaining a residence permit in Ukraine will be separated.

At the same time, the question often arises whether it is possible to obtain grounds for a long-term stay in Ukraine if you register as a sole proprietor and conduct business in the country.

By the way, you can find detailed instructions on how a foreigner can open a sole proprietorship in Ukraine in our previous article.

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Does registering as a private entrepreneur give you the right to long-term residence in Ukraine?

It is worth noting that the mere registration of a sole proprietorship is not enough to obtain a residence permit. In accordance with the Rules for issuing visas for entry into Ukraine and transit through its territory, approved by the Resolution of the Cabinet of Ministers of Ukraine No. 118 dated March 1, 2017, the following grounds, in addition to those specified in paragraph 5 of these Rules, may serve as grounds for obtaining a long-term visa:

– A work permit for foreigners and stateless persons;

– Immigration permit issued by the SMS;

– A document confirming that the person is a family member of a person recognized as a refugee in Ukraine or granted temporary protection in Ukraine;

– Invitation to study (internship);

– Invitation from a state institution, enterprise, organization that is a recipient of an international technical assistance project;

– Invitation from a religious organization;

– Invitation of a branch, department, representative office or other structural unit of a public (non-governmental) organization of a foreign country;

– Invitation of a branch, department, representative office of a foreign business entity;

– Invitation of a branch or representative office of a foreign bank;

– An application from a foreign mass media outlet for a visa for a foreign correspondent;

– Requests from competent authorities of foreign countries or international organizations for visas for employees of diplomatic missions and consular offices;

So, registering as a sole proprietor will allow you to run a business, but you need to obtain a permit for long-term residence in Ukraine. We have described in detail how to obtain a residence permit in Ukraine through business and what you need to do for this in our previous article.

If you need assistance in starting a business or obtaining a residence permit in Ukraine, our legal services specialists are ready to provide advice and support at every stage. Visit Ukraine's lawyers will help you to understand all the requirements and prepare the necessary documents quickly and without any hassle.

Contact us for high-quality legal assistance and support in any matters related to legalization in Ukraine.

We remind you! Foreign citizens wishing to invest in the Ukrainian economy can obtain a residence permit in the country if their investment meets certain requirements. Read how to get a residence permit in Ukraine through investment, as well as what procedures you need to go through, in our previous article.

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

Ihor Usyk is the Head of Legal Department at Visit Ukraine

Before you travel to Ukraine or while you are already in the country, seek legal advice. Our team will help you feel safe and confident during your trip, business trip or relocation.