How to register as a private entrepreneur in Ukraine

Ukraine keeps developing and amending its legal system to make our country more attractive not only for large businesses but for the small also. For example, the most common form of running a business in Ukraine is private entrepreneurship, being now the most popular form of small business, IT business and services. According to the statistics more than 1 763 000 private entrepreneurs (individual entrepreneurs) are registered in Ukraine.

Becoming a private entrepreneur (individual entrepreneur) in Ukraine is a relatively simple issue.

Generally, the procedure consists of the following stages:

1) getting Ukrainian tax ID number;
2) registration as PE at the center for administrative services (or before the notary);
3) opening the bank account.

As per the law of Ukraine “On state registration of legal entities, private entrepreneurs and public formations” the following documents will be necessary for a private entrepreneur who is a foreign citizen:
1. passport (with the proper translation into Ukrainian);
2. tax ID;
3. application form;
4. confirmation of the address where the private entrepreneur is registered as the business entity at his/her residence.

The law establishes that the address of residence is the address where the person resides permanently or temporarily.

All the people who legally stay within the territory of Ukraine have to register their residential address. The stamp with the address of residence is imprinted in the Ukrainian documents such as internal Ukrainian passport, temporary/permanent residence permit, refugee’s certificate, references of the person who applied for the protection in Ukraine. Therefore, if you don’t have one of the above mentioned documents you don’t have to register your place of residence in Ukraine. In case you want to become a private entrepreneur – the lease or purchase agreement will be enough.

The private (individual) entrepreneurs are eligible to choose a simplified taxation system and pay a 5% Single tax of the gross income (UAH 5 million max.) from their business activity. Also, the monthly social fee of UAH 1039,06 has to be paid.

Tetiana Yashchenko