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Publication date: 07.05.2024
Ukrainian legislation provides for various types of fines for illegal business activity. Here are some possible scenarios and associated penalties.
- • Working without registration: If an individual or legal entity conducts business without proper registration, it may face a fine of 17,000 to 85,000 hryvnias with confiscation of goods and funds (according to the Code of Ukraine on Administrative Offenses).
• Non-taxable activity: If a company or an individual does not pay taxes or other mandatory payments, fines can be significant and depend on the amount owed and other circumstances. Usually it can be a percentage of the amount owed plus interest.
• Violations of employment laws: If a business uses workers' labor illegally (for example, fails to enter into necessary contracts, pay taxes, or fail to meet safety standards), fines may be imposed under applicable labor laws.
• Violation of licensing: If the activity of the enterprise requires licensing, but it is carried out without an appropriate license, the fines can be significant and may include the loss of the right to carry out a certain type of activity.
Please note that fines may vary depending on the circumstances of the case and applicable legislation. It is also important to consider that in addition to fines, there may be other consequences, such as confiscation of property, termination of activity, etc. In each specific case, it is recommended to contact a qualified lawyer for advice on taxes and protection of your rights.
In order to register your business and move forward with peace of mind, here are a few steps you can take:
- • Choosing a business form: Choose a form of business, for example, a sole proprietorship, a limited liability company (LLC), a joint-stock company (JSC), etc. Choose the form that best suits your needs and goals.
• Registration: Register your company according to the selected form. This may include submitting relevant documentation to a local registration authority, such as the State Service of Ukraine for Regulatory Policy and Small and Medium Enterprise Development.
• Obtaining necessary permits and licenses: If your activity requires special permits or licenses, make sure they are obtained before starting work.
• Tax registration: Get a tax number and register with the tax authorities to pay taxes.
• Bookkeeping: Start keeping financial and accounting records in accordance with the requirements of current legislation.
• Legal compliance: Make sure you comply with all employment, occupational safety, consumer rights, etc. requirements. - • Advice from a tax lawyer: If you are unsure about any aspect of registration or running a business, it is best to seek the advice of a qualified lawyer.
Constant knowledge update: Remember that legislation can change, so it is important to constantly update your knowledge and comply with all requirements. Online tax consultation will help you determine the main priorities of your activity.
The size of the fine for illegal business activity in Ukraine may vary depending on the specific violation and its circumstances. Fines are usually set in accordance with the Code of Ukraine on Administrative Offenses or other legal acts.
- For example, if an individual or legal entity engages in entrepreneurial activity without proper registration, he faces a fine of 17,000 to 85,000 hryvnias (according to Article 164 of the Code of Ukraine on Administrative Offenses). However, the amount of the fine may vary depending on the circumstances of the case and the court's decision.
Where to get tax advice: To get accurate information about fines for specific types of violations, it is recommended to refer to the current legislation or consult with a qualified lawyer who has experience in the field of business law in Ukraine.
Various types of fines may be imposed for illegal employment or non-compliance with the requirements for official registration of employees in accordance with the current legislation of Ukraine.
- Here are some possible scenarios:
• Unsigned employment contract: If the company uses the labor of an employee without signing an employment contract, this may result in an administrative fine for the employer. The amount of the fine may be established in accordance with Article 265 of the Code of Ukraine on Administrative Offenses.
• Untaxed wages: If the company does not pay taxes or does not reflect the wages of employees in its tax reports, this may result in a fine according to the tax legislation of Ukraine.
• Untaxed employee income: If an employee receives income that was not reported on tax returns or was not properly taxed, this can result in penalties for both the employer and the employee.
The amount of the fine may be determined depending on the circumstances of the case and the court's decision. It is recommended to refer to the current legislation or to consult with a qualified lawyer for tax advice for legal entities and individuals on fines for specific violations in the field of employment in Ukraine.
Doing business without obtaining the necessary permits and licenses can have serious legal consequences. Here are some possible types of liability:
- • Administrative liability: According to the Code of Ukraine on Administrative Offenses, an administrative fine may be imposed on individuals or legal entities for violation of requirements for obtaining permits or licenses.
• Prohibition of activity: If the enterprise carries out business activities without the necessary permits or licenses, it may be deprived of the right to carry out these activities. This may include a temporary or permanent ban on doing business in a certain area.
• Criminal liability: In some cases, violation of the requirements for permits and licenses may be classified as a crime. For example, if it is related to abuse of power or fraud.
• Civil liability: If the activity of the enterprise without permits or licenses causes damage to third parties, it can be sued in a civil court for compensation of the damage caused.
The appropriateness and severity of measures may vary depending on the circumstances of the case and applicable legislation. It is recommended to contact a qualified lawyer for advice and protection of your rights in case of violation of the requirements for permits and licenses, and also get advice on taxes
