Private entrepreneur in Ukraine accountancy

30 Марта 2021 Деятельность предпринимателей

Private entrepreneur, sole proprietor, FOP – different definition in English of the same thing – private person entitled to do business in Ukraine, registered accordingly and carrying out business through business account. It is very attracting form of business in Ukraine because of simplicity of registration, activity, cash handling and of course taxation.

Taxation of FOP The 3rd group of simplified taxation for FOP is the most popular, because of the following:

  • FOP on third group can carry out business with legal entities.
  • there are not many restrictions on scope of business: organizing of gambling, extraction of precious metals, currency exchange offices, financial
  • intermediation etc.
  • limit of income is UAH 7 002 000 per year (in 2021). After the limit is reached, the common system of taxation is to be applied. It is possible to choose 5 % income fixed tax, no VAT (or alternatively 3 % and VAT). Additionally, social tax is to be paid quarterly and it amounts to UAH 3960 in 2021 per quarter. FOP can carry out its business through its business account with individuals, companies, including foreign entities and cash out his earnings without preparing or showing any documents for that. For doing business with legal entities the contracts or invoices are to be in place. Still, FOP carries some legal risks such as responsibility for business activity with his/her personal assets.

Reporting of FOP There are 3 reports to be submitted during a calendar year:

  • Income tax declaration, submitted quarterly
  • Social due report, submitted annually In cases when FOP pays to another individual from his business account, 1-DF report is to be submitted monthly too. In the table above we outlined deadlines for the above reports. Laudis Legal&Accountancy proposes services of accountancy and legal support for FOPs for UAH 1000 per month. The registration, closing of FOP is included in the service fee. We would be happy to assist you in your entrepreneurship.


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Дарина Варлам

Юрист ЮФ Лаудис

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