Publication date: 05.06.2024
How to change KVED: Business adaptation to new realities
In the world of business, the only constant is change. Markets are transforming, consumer tastes are evolving, technologies are revolutionizing entire industries. In this dynamic environment, a company's ability to adapt often determines its success or failure. One of the key tools of such adaptation in Ukraine is the change of KVED - Classifier of types of economic activity.
What is KVED and why is it important? KVED is a kind of "passport" of your business. It defines what exactly your company does: production, trade, service provision, etc. A lot depends on the correctly chosen KVED: the taxation system, the possibility of participating in tenders, obtaining licenses.
Olena Petrenko, who successfully manages a network of bakeries in Kyiv, recalls: "When I registered my LLC, I chose KVED 10.71 - Bread production. But within a year I realized that most of the profit comes not from the production itself, but from our coffee shops at the bakeries. Then I decided to add KVED 56.10 - Restaurant activities. This opened up new opportunities, for example, participation in gastronomic festivals."
Elena's story illustrates an important point: changing the KVED is not just a bureaucratic procedure. This is a strategic move that can open new horizons for your business. And the best part is that this step is quite simple.
How to change KVED for LLC? There are three main operations:
1. Adding KVED - when you expand the scope of activity.
2. Change of the main KVED - when the main direction of business changes.
3. Deleting KVED - when you stop a certain type of activity.
The procedure for all three cases is almost the same:
1. Adoption of a decision by the owner or the meeting of participants of the LLC.
2. Filling out form 11 (for changing types of activities).
3. Submission of documents to the state registrar or online through "Diya".
Andriy Kovalenko, an IT entrepreneur, shares his experience: "We had KVED 62.01 - Computer programming. But we started to provide cyber security services, and clients often asked if we had the appropriate registration. Adding KVED 62.02 (Informatization consulting ) took only 15 minutes online, but significantly increased customer confidence."
It is important to understand that changing the KVED is only one of many legal processes that businesses face. It often goes side by side with other procedures:
- LLC registration and selection of initial KVEDs
- Change of LLC address if you expand and move to a larger office
- Changing the director of the company, if you involve a professional manager
- Changing the authorized capital of the LLC, if investments are required for the new direction
- Trademark registration to protect the brand in a new niche
Ihor Lysenko, who specializes in supporting IT startups, emphasizes: "In the world of technology, everything changes every six months. I advise my clients to regularly review their KVEDs. Today you make mobile applications (KVED 62.01), and tomorrow - blockchain solutions (KVED 62.02 ) or even mining cryptocurrencies (КВЕД 64.19). Quick change of КВЕД allows you to always be in the legal field."
It is interesting that sometimes companies use the change of KVED as an alternative to closing the business. For example, you have an LLC that was engaged in tourism (KVED 79.12), but due to the global crisis, demand fell. Instead of liquidating the LLC, you can change the activity to, say, online language courses (КВED 85.59), while preserving the legal entity with its history and reputation.
In conclusion, it is worth mentioning one interesting fact. According to the State Enterprise statistics, companies that changed or added KVED at least once during the first three years of operation are 30% less likely to go through the business liquidation procedure. This shows that flexibility in choosing areas of activity is not a whim, but a survival strategy.
So, KVED is not just a code in registration documents. It is a reflection of your business strategy, a marker of your readiness for change. In a world where the only constant is change, the ability to quickly and correctly change KVED can become your superpower in the world of entrepreneurship.
