Individual entrepreneur in Ukraine

In order to document the status of a private entrepreneur – an individual, it is necessary to go through the registration procedures in state bodies.

I will tell you how and in what order a natural person – a private entrepreneur who has no employees – to get registered with public authorities. The process of designing employees has some differences, so I’ll talk about that in the next posts. The whole process of registering an entrepreneur can be divided into three stages.

  1. Registration with the state registrar.
  2. Accounting for tax inspection.
  3. Retirement Accounting.

Registration of entrepreneur-individual. What to do and where to go. Entrepreneur registration with a state registrar.
According to Article 5 of the Law [1], state registration of legal entities and natural persons – entrepreneurs is carried out by the state registrar exclusively in the executive committee of the city council. To begin the registration procedure according to Article 42 of the Law [1] it is necessary to submit the following documents, which must be presented exclusively in the state language:

  • completed registration card (Form # 10);
  • a copy of the certificate of inclusion of the applicant in the State Register of Individuals – Taxpayers and Other Obligatory Payments (in plain language INN);
  • document confirming the payment of the registration fee for the state registration of the natural person – entrepreneur (copy of the receipt or payment order with the bank mark, the amount of the fee – two non-taxable minimum incomes of citizens).

Before completing Form # 10, it is necessary to determine the types of activities that you will be engaged in, according to the NACE – the classification of economic activities. It will be advisable to select several activities so that you do not make any changes after you decide to expand.

According to Article 43 of the Law [1], within two days from the date of submission of the required documents, the state registrar submits the necessary entry in the Unified State Register and within a day, you must issue a certificate of state registration of the individual.

This completes the registration of documents with the state registrar. Now, you are a private entrepreneur.

Accounting for tax

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You now need to register with the tax office. According to item 5.1. The order [2] of taking into account of the natural person-entrepreneur is carried out at the place of residence of such person by the relevant body of the state tax service on the basis of information from the registration card for the state registration of the natural person-entrepreneur.

So, after we have received the state registration certificate, we go to the tax office of residence and do the following:

 

  • fill in the application form N 5-OPP;
  • provide a copy of the state registration certificate and show the original.

The registration of the taxpayer is made on the next business day after receiving the application. And a day later, you should send a tax return to the taxpayer in the form of N 4-OPP. However, to speed up the process of getting your help on hand, you can pick it up yourself by notifying the tax in advance.

According to p. The order [2] from the moment of registration is considered by the taxpayer to be on the general system of taxation, unless he chooses another method of taxation in accordance with the legislation.
An entrepreneur can choose between two options for a simplified tax system: a single tax or a fixed patent.

In order to become a single tax payer, according to clause 4 of Decree [3], a small business entity submits a written application to the state tax office at the place of state registration. The application form was approved by Order [4]. You can also download it HERE. Within 10 days of the filing of the application, the taxpayer is obliged to issue the Single Tax Certificate free of charge or to provide a reasoned written refusal free of charge.

In order to become a fixed tax payer, according to clause 14.2 of Section IV of the Instruction [5], the payer submits to the tax authority an application in an arbitrary form, which must contain information on the place of business; the list of persons who are in employment with the taxpayer, and their identification numbers or family members who are involved in the business activity, and their identification numbers, as well as information on his income from the business activity in the last 12 months or not receiving such revenue. In addition, a document certifying the payment of a fixed tax is the basis for the grant by the tax authority.

After that tax, within three working days must issue a patent, certifying the right to pay a fixed tax.

Retirement Accounting

 

Registration in a pension fund is carried out on the basis of the Law [6]. You can go to the pension fund immediately after receiving the state registration certificate. On the basis of this certificate you will be taken into account.

According to paragraph 5 of Art. 15 of the Law [5], the notification on registration of the insured as a payer of insurance premiums shall be sent to the policyholder on the next business day from the date of registration.

So we went through a complicated and thorny journey of documenting and registering with the state bodies of a private entrepreneur-individual. These procedures, from start to finish, can be completed in four business days (you only have to wait for the Single Tax Certificate or patent to be issued if you have selected a flat tax).

Your costs will be approximately 300 UAH: 35 UAH. for registration fee, 200 or 100 UAH. single or fixed tax, and other ancillary expenses. In some cases, an enterprise seal may be required, which can be read in more detail here. You may also need to open a current bank account. You can read what documents are required to open a current account here.

List of normative documents used.

 

  1. The Law of Ukraine “On State Registration of Legal Entities and Individuals – Entrepreneurs” of 15.05.2003 No. 755-IV.
  2. “Procedure for accounting of taxpayers, fees (obligatory payments)” approved by the Order of the State Tax Administration of Ukraine No. 80 of 19.02.1998;
  3. Decree of the President of Ukraine “On simplified system of taxation, accounting and reporting of small business entities” of 03.07.1998 № 727/98.

 

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