Establishing a sole proprietorship (ФОП) for foreigners

This page is for Turkish citizens who want to work for themselves in Ukraine. A sole proprietorship (фізична особа-підприємець, ФОП) is the simplest form of business in Ukraine, and its registration is free. However, registering a ФОП alone does not give you the right to stay in Ukraine. Below you will find information about the tax number, registration, choosing a tax system, and points that foreigners should pay attention to.

• A ФОП is a sole proprietorship registered in Ukraine's unified state register (ЄДР). It is suitable for small businesses and for selling to or providing services to final consumers.
• Under the registration law, the identity document for a foreign applicant is the passport of their country. A residence permit is not among the documents required by law for ФОП registration.
• Attention: Registering a ФОП does not give you the right to stay in Ukraine. ФОП registration is not among the temporary residence grounds listed in the Law on Foreigners. To stay in Ukraine for more than 90 days, you need a separate residence ground (see U2.1).
• If you establish a company in Ukraine and hold a share in its capital worth at least EUR 100,000, you can obtain a two-year temporary residence permit (see U2.1 and U8.3).

• A tax number (реєстраційний номер облікової картки платника податків) is required for ФОП registration and tax procedures.
• Foreigners apply to the regional offices and the Kyiv Main Directorate of the State Tax Service (ДПС). Those who have a residence permit may apply to the office responsible for the address indicated on the permit.
• Documents:
  • registration card using form 1ДР
  • passport (presented and returned)
  • certified Ukrainian translation and copy of the passport (not required from those who have a residence permit)
• There is no fee. The processing time is 3 business days; 5 business days if you apply outside your tax address; and 10 business days if there is an error in the form.
• A representative may also apply with a notarized power of attorney.
• If you are outside Ukraine, you can send the form and a copy of your passport to the tax authority by mail. In this case, your signature on the form must be notarized, and foreign documents must be certified and accompanied by a Ukrainian translation.

• Where to apply:
  • administrative service center (ЦНАП)
  • notary
  • executive bodies of municipalities and district military administrations (including Kyiv districts)
  • Diia portal: automatic registration, approximately 10 minutes; a qualified electronic signature (КЕП) is required
• Documents:
  • registration application using the Ministry of Justice's form No. 1. The application may also indicate VAT registration and the choice of the simplified taxation system.
  • your passport (presented when applying in person)
  • notarized power of attorney if a representative applies
• Fee: registration is free.
• Processing time: 1 day. In Diia, the registration is entered into the ЄДР within no more than 2 business days. The registration document (виписка) is delivered to your account within 3 business days.
• The registration information is automatically sent to the tax authority and the statistics office.
• You can obtain a qualified electronic signature free of charge from the Ministry of Internal Affairs and the Tax Service. Some banks also issue one.

• There are two options: the general system and the simplified system (єдиний податок, single tax).
• Simplified system groups:
  • Group 1: ФОПs with no employees who sell goods at retail only in markets or provide household services to the public. Annual income limit: 167 minimum wages.
  • Group 2: ФОПs who provide services to the public or to single-tax payers, or engage in production, sales, or restaurant activities, with no more than 10 employees. Annual income limit: 834 minimum wages.
  • Group 3: No limit on the number of employees. Annual income limit: 1,167 minimum wages.
• Rates:
  • Group 1: monthly, up to 10% of the minimum subsistence level
  • Group 2: monthly, up to 20% of the minimum wage
  • The amounts for Groups 1 and 2 are set by municipal councils.
  • Group 3: 3% of income (if VAT is paid separately) or 5% (if VAT is included in the tax)
• Military tax (військовий збір): ФОПs have also paid it since January 1, 2025. Groups 1 and 2: 10% of the minimum wage each month, paid in advance by the 20th of each month. Group 3: 1% of income. This rule remains in effect until the end of the third year following the year in which martial law ends.
• Single social contribution (ЄСВ): the rate is 22%. A ФОП under the simplified system determines its own assessment base. However, the payment for each month may not be less than 22% of the minimum wage (the minimum insurance contribution). Payment must be made by the 20th of the month following the quarter.
• Groups 1 and 2 take effect from the first day of the month following registration. Registration for Group 3 is completed within 2 business days.
• Under the simplified system, you may keep income records in any format you choose. Under the general system, you must have the income book registered with the tax authority.

• Non-residents (нерезиденти) cannot use the simplified single-tax system. Therefore, your tax residency is important.
• Under the Tax Code, a person who has a place of residence in Ukraine is a resident. A person's designation of Ukraine as their main place of residence, or their registration as a self-employed person (самозайнята особа), is sufficient grounds to consider them a resident. For residency, see U8.1; for double taxation with Türkiye, see U8.2.
• Some activities cannot be carried out under the simplified system. Examples include currency exchange, gambling and lotteries, the production and sale of excise goods such as alcohol and tobacco (with some retail exceptions), company management, security services, financial intermediation, and trading in antiques and works of art.
• If you hire employees as a ФОП, you become an employer. If you hire a foreign employee, you must obtain a work permit for them (see U3.1).

• You can open a ФОП account at one of the participating banks through the "e-Entrepreneur" (е-Підприємець) package in Diia (see U7.1).
• The registration document (виписка) obtained online is an official document. All government institutions are required to accept it.
• If your document is not accepted, you can call the Ministry of Justice hotline.

• Administrative service centers (ЦНАП): ФОП registration. You can find the nearest center in Diia's ЦНАП registry.
• Ministry of Justice hotline: +380 44 237 09 96
• State Tax Service: tax number and tax registration; regional offices and the Kyiv Main Directorate
• Government hotline: 1545 (from within Ukraine)

• Assuming that opening a ФОП creates a right of residence in Ukraine.
• Going to register without first obtaining a tax number.
• Choosing the simplified single tax while being a non-resident.
• Forgetting to pay the military tax and ЄСВ.
• Selecting an activity prohibited under the simplified system.
• Hiring a foreign employee without obtaining a work permit for them.

• Can I open a ФОП without going to Ukraine? You can obtain the tax number by mail. You can complete the registration through Diia using a qualified electronic signature or through a representative with a notarized power of attorney. However, registration does not give you a right of residence.
• Does ФОП registration cost anything? No, it is free.
• Which group should I choose? It depends on the type of your business, the number of employees, and your income. Diia has a test to help you choose a group. If you are unsure, consult the tax authority or an accountant.
• How do I close my ФОП? Diia offers an automatic ФОП closure service.
• Do I also have to declare my income in Türkiye? See U8.2 for the agreement on avoiding double taxation.

• Diia – ФОП registration service and frequently asked questions
• Diia service guide – ФОП registration, card No. 00106
• Diia service guide – Tax number card, No. 00321
• Diia – ЦНАП registry
• Ukrainian Tax Code (full text)
• State Registration Law No. 755-IV
• Single Social Contribution Law No. 2464-VI
• Diia Business – entrepreneur portal