OGP - CONSALTING PARTNERSHIP
Контакты:
Адрес:
ул. Соломенская дом 3, офис 807 г. Киев,
Телефон:
(044) 337-7315,
Электронная почта:
i@ogp.ua

 Ukraine, Kyiv,

Solomenskaya st.

3, office 807.

Poland, Krakow,

Krashevskego st.

36/128

 

Polska, Kraków,

Ukraine, Kyiv,

Registration of an Individual Entrepreneur 2022-02-08 21:52:33

 

An Individual Entrepreneur (hereafter – ‘IE’ or ‘natural person entrepreneur) is a person who conducts initiative, systematic, at his own risk, entrepreneurial activity to make a profit. Generally, the person who is doing own business.

A natural person-entrepreneur is registered regardless of the place of registration or residence of the natural person. Registration of an IE requires a minimum amount of money and time, provide to use a simplified taxation system and ease of financial transactions.

Individual Entrepreneurs can register both residents and non-residents.

Registration of a natural person-entrepreneur is optimal for beginners in the business. IE is an ideal organizational and legal form for entrepreneurship, including if you plan to provide services or sell goods to individuals. 

Since 2021, a pilot project has been launched for a resident to register IE automatically - through the application "DIIA".

IE can be registered as a private individual through:

  • administrative service center;
  • the application "DIIA";
  • a private registrar.

Our company is ready to provide a range of services for the registration of individual entrepreneurs

Term of 1-2 working days.

 

Independent  (Self-submission)

service package 

Optimal 

service package 

Non-resident 

service package 

Price:

UAH 800

Price:

UAH 1 500 - through the administrative service center; 

UAH 1 000 - through "DIIA"

Price:

UAH 2 500

The client is registered as an entrepreneur by herself/himself, under the control of an experienced lawyer.

Preparation of the power of attorney project;

Submission of documents to the state registrar;

IE registration;

Registration as a VAT or single taxpayer;

Receipt an Extract from Unified state register;

Obtaining an Extract from the Register of VAT Payers or the Single Tax.

Preparation of the power of attorney project;

Submission of documents to the state registrar;

IE registration;

Registration as a VAT or single taxpayer;

Receipt an Extract from Unified state register;

Obtaining an Extract from the Register of VAT Payers or the Single Tax.

Organization of translation of documents;

Consultation in English / Polish.

Included in all service packages:

Consultation on the choice of taxation system;

Selection of NACE according to the field of activity;

Preparation of application documents. 

 

 Additional costs:

UAH 600 - notarization of the power of attorney; but if the entrepreneur is personally present at the state registrar, the power of attorney is not required;

UAH 200 - notarization of a copy of the passport (when registering through the application "DIIA").

 

Additional Services:

Receiving a seal - UAH 500;

Registration of RRO / PRRO (cash register system) - UAH 1500;

Obtaining the registration number of the taxpayer's account card (identification number) for a non-resident - UAH 1500;

Providing a tax address - by agreement (depending on the district and city).

 

Required information and documents for registration:

  1. Copy of passport;
  2. Copy of the registration number of the taxpayer's account card (identification number);
  3. Contact information (phone number, e-mail);
  4. Activities (NACE);
  5. Taxation system;
  6. Residence permit or other documents confirming the right of a foreigner to stay in Ukraine (for non-residents).  

 

Advantages when ordering the service: 

  1. Integrated approach: obtaining answers to all legal and accounting questions related to the activities of private individuals.
  2. Legal analysis of activities for obtaining permits and licenses and for the protection of intellectual property.
  3. Free consultations on related issues of registration, advantages, and disadvantages of FOP.
  4. Save time - our lawyers will prepare the whole package of necessary documents.
  5. We guarantee a 100 percent result.

 

Additional Services:

  1. Obtaining licenses or permits. To legally carry out their activities, it is necessary to obtain the appropriate permits, depending on the field of activity. Having a license or permit guarantees the reliability and legitimacy of the company/IE and helps attract customers. 
  2. Trademark registration. A trademark is a sign, a logo that will protect your brand and increase the company's competitiveness.
  3. Development of contracts. The activities of the entrepreneur are always accompanied by the conclusion of various agreements - either with partners or with customers. Therefore, contracts must be legally correct and protect the interests of the entrepreneur. 
  4. PPO / PRRO registration. In cases specified by law, entrepreneurs are obliged to make payments with the help of registrars of settlement transactions when trading in goods or providing services. From 01.01.2022, this requirement will be mandatory for all sole proprietors who make cash payments (except for single taxpayers of group 1).
  5. Accounting services. Choosing a taxation, accounting, and reporting system is the key to success.

 

Legal aspects

The Civil Code of Ukraine stipulates that a natural person with full civil capacity has the right to engage in entrepreneurial activity that is not prohibited by law.

An individual who has reached 16 years of age can register a sole proprietorship.

Private individual - a business entity without the status of a legal entity. Private individuals do not need authorized capital, founding documents, or governing bodies. FOP is responsible for all property owned by an individual. All funds received on the account of the private individual are his own.

From 2021, you can register a private individual through the application "DIIA", without visiting the registration authority.

For carrying out activities without registration, a natural person-entrepreneur is fined from UAH 17000 to UAH 34000 with possible confiscation of property and money received for such activities.  

 

 

Frequently asked questions 

What is the state payment for FOP registration?

At the initial registration of a private individual, the state payment is not paid.

 

How many NACE can you choose for your private individual?

The legislation does not set a maximum number of activities (NACE) for one business entity.

 

Which tax system can be chosen as a sole proprietor?

Depending on the projected turnover and category of consumers, you can choose:

  1. general taxation system - there are no restrictions on the number of employees, a single social contribution and 18% income tax are paid, there are no restrictions on activities, with a turnover of less than UAH 1 million you can not register as a VAT payer;
  2. simplified taxation system:
  • Group 1 - pays a single tax and SSC, the limit of annual income - 167 minimum wages, has the right to trade in the markets and provide household services to the population;
  • Group 2 - pays a single tax and SSC, annual income limit - 834 minimum wages, provides household services to citizens, single taxpayers, engaged in the production and sale of goods, restaurants, in such FOP can be no more than 10 employees; 
  • Group 3 - pays SRS and 5% of turnover or 3% of turnover tax and value-added tax, has an annual income limit - 1167 minimum wages, no restrictions other than prohibited activities for EP payers; 
  • Group 4 - for agricultural

 

How to register a sole proprietorship while abroad?

It is not necessary to be in Ukraine to register a sole proprietorship - it is enough to issue a notarized power of attorney for a representative, which must be apostilled or legalized, and you can also register through the DIIA application.

When a private individual is registered as a foreigner, he is automatically recognized as a resident of Ukraine.

 

Does a freelancer have to register as a sole proprietor?

Yes, You must. According to the law, systematic and commercial activities must be registered and taxes must be paid. 

 

Why is it profitable for an IT specialist to be a sole proprietor?

An entrepreneur is a convenient form of entrepreneurship, it is easy to register and easy to close.

It is good for an IT specialist to register a sole proprietorship and pay taxes on a simplified system. In addition, if the IT specialist is an entrepreneur, the taxes paid are lower than when he is employed.

Advantages of opening a sole proprietorship: accumulation of insurance experience for retirement, the ability to enter into foreign trade agreements, the ability to apply for loans for their activities, you cannot be afraid of unexpected inspections, regulatory status, and official bank account is a guarantee for potential customers. 

 

Where can I find a list of NACE to be licensed?

There is no officially approved list of licensed NACE. Article 7 of the Law of Ukraine "On Licensing of Economic Activities" contains activities that are subject to licensing.

 

What can be the problems when registering as a single taxpayer?

There may be a refusal to register as a single taxpayer if:

  • the person has debts to the state;
  • the deadline for registration for the simplified system has not been met;
  • the selected NACE is prohibited for the simplified system. 

 

Is it possible to register a private individual without a residence permit?

Citizens of Ukraine must have a registered place of residence to register a sole proprietorship, and non-residents must have proof of address which is used for living officially.

 

Can private individuals export goods and services?

Private individuals in groups 2 and 3 of the simplified system can sell goods abroad, and only private individuals in groups 3 are allowed to provide services to foreigners.

 

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