Publication date: 30.05.2024
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Registration of an individual entrepreneur
Ukrainian legislation provides for the possibility of registering natural persons as entrepreneurs to carry out entrepreneurial activities at their own risk. The FOP can carry out any legal activity, within the limits established by the law, is responsible for its financial obligations with personal property and has the right to make independent decisions regarding its activities.
Ukrainian natural persons who intend to engage in entrepreneurial activity can register themselves as an individual entrepreneur. After registering as a natural person, the entrepreneur receives the appropriate status and rights, and also undertakes to comply with tax and other legislation regulating business activities.
An individual - an entrepreneur can be an independent entrepreneur without creating a legal entity or can be organized as an entrepreneur-individual who has the right to establish a limit on the size of liability.
Of course, individual entrepreneurs pay taxes that depend on various factors, such as the amount of income and types of activities.
In Ukraine, there are two main taxation systems for individual entrepreneurs - general and simplified.
General taxation system (main):
1. Entrepreneurs who choose the general taxation system tax their profit in accordance with the Tax Code of Ukraine at the corporate income tax rates.
2. Obliged to keep records of income and expenses, including preparation of financial statements and tax reporting.
Simplified tax system:
1.In this system, natural persons entrepreneurs can choose a simplified taxation system, which provides for a simplified procedure for calculating taxes.
2. Entrepreneurs pay a single tax of 5% or 3% (VAT payers) and a single social contribution.
3. One of the main advantages of this system is the simplification of accounting and tax payment.
The chosen taxation system depends on various factors, such as the amount of income, nature of activity and other circumstances. Each of these systems has its advantages and limitations, and the entrepreneur must choose the one that best suits his needs and situation.
The process of registration of individual entrepreneurs
Registration of an individual entrepreneur in Ukraine is a fairly simple process. Here's a step-by-step guide on how to do it:
1. Before starting the registration procedure, you need to determine what activity you will be engaged in and choose the appropriate codes Classification of types of economic activity.
2. For registration, you will need: passport (or ID card) and identification code. Completed application for state registration of an individual entrepreneur in Form 1 (can be found on the website of the Ministry of Justice of Ukraine).
3. Documents can be submitted in several ways:
- in person at the Center for the provision of administrative services, through the state registrar;
- online through the Diya portal.
4. After registration, you must choose the taxation system.
5. Opening a bank account.
6. Open a business account at any bank.
7. If you chose the simplified taxation system, you need to submit an application for the application of the simplified taxation system to the tax inspectorate.
8. It is carried out automatically when submitting documents for registration.
9. After successful registration, you will receive an extract from the Unified State Register of Legal Entities, Individual Entrepreneurs and Public Organizations. The statement contains your registration number and registration information.
Registration of individual entrepreneurs is the first step towards your entrepreneurial activity, so you should approach this process responsibly.
