Sole trader registration (FOP)

Initial registration of a sole trader (FOP)

Registration period — from 1 to 4 business days.

Cost of registration: with a seal — UAH 1,000; without a seal — UAH 800. Ongoing legal support for a sole trader — by arrangement.

Documents required for registration

• a copy of the passport and of the certificate of the tax identification number
• the main types of activity (business classification codes) — what you plan to do
• your current telephone number
• the chosen taxation system (general or simplified)
• whether a seal is required

What the legal service includes

• advice on the procedure for registering a sole trader
• preparation of the complete set of documents
• drawing up the power of attorney for registration
• payment of State duties
• registration with the relevant district administration
• obtaining the certificate of State registration of the individual entrepreneur
• registration with the tax office and selection of the taxation system
• production of a seal (if required)
• assistance in opening a current bank account

Who may become a sole trader

Entrepreneurial activity may be carried out by an individual who has full civil capacity — that is, as a rule, from the age of 18, when a person becomes able to independently acquire rights, create obligations and bear responsibility for failing to perform them.

Under the legislation, full civil capacity may be acquired before the age of 18: upon registration of marriage, or where a minor is recorded as the mother or father of a child. If a minor has reached 16 years of age and works under an employment contract, or has expressed a wish to engage in entrepreneurial activity, full civil capacity may also be granted to them.

Sole traders may apply the simplified system of taxation, accounting and reporting, which considerably eases the running of a business. Reporting is kept to a minimum and is submitted to the tax authorities quarterly.