Article
3 min read
Author
Anja Simic
Published
August 12, 2021
Last Update
June 27, 2024
Table of Contents
Private Entrepreneur Business Structure Overview
Registration of a Private Entrepreneur
Registration with Tax Authorities and Taxation of the Private Entrepreneur
If you aspire to become self-employed in Ukraine, this is a guide with all the steps you need to take during the registration process. In Ukraine, a self-employed person is called a Private Entrepreneur (PE), an individual entrepreneur, or a sole proprietor.
Disclaimer: Be aware that this article is not a substitute for legal advice. Please always check official websites or seek legal advice before you take action.
An individual who runs their own business and assumes the risk for the business's profitability or losses is considered a Private Entrepreneur. The Ukrainian name is "fizichna osoba-pidpriyemets", also called FOP.
In Ukraine, most freelancers have found the Private Entrepreneur business structure the best option for their needs. This form of business is the most common among business registration and the simplest type defined by Ukrainian law. The two main reasons for that is its simple registration process and simplified taxation system.
In Ukraine, both Ukrainian citizens and foreign individuals can be registered as Private Entrepreneurs.
Here are the key characteristics you need to fulfill to be able to register as a Private Entrepreneur:
You need to submit an application to the State Register, which is the Register of Legal Entities, Individual Entrepreneurs and Public Organizations of Ukraine. The registration can be executed by one of the following appropriate authority at the place of your residence:
You can process to the registration through the Register, by filling out and submitting the documents by email or in person (see the paragraph below) or by using electronic services that require an electronic signature.
Necessary documents to provide the information to be filled out in the application:
Keep in mind: if the application for registration is filled by an attorney, the certified power of the attorney will be required.
Usually, if the application form is filed correctly, you should be registered as a Private Entrepreneur into the State Register.
Then, the registration of the Private Entrepreneur with tax authorities is automatic under the Standard Tax Scheme, which therefore requires no further action. The State Register notifies the tax authorities of the new registration automatically. You can also apply for the Simplified Tax Scheme to the registrar, for more information, please see below.
Once successfully registered as a Private Entrepreneur, you will have online access to your registration information.
In case you're looking to hire independent contractors in Ukraine instead of becoming one, you'll find the necessary information in this page.
As said before, the registration of the Private Entrepreneur with tax authorities is done automatically after the registration in the State Register and doesn't require any other action by the person.
A Private Entrepreneur can choose between one of the following tax assessment schemes:
Solutions
© Copyright 2024. All Rights Reserved.