Registration of an individual entrepreneur

The individual entrepreneur is a form of conducting entrepreneurial activity whereby an individual bears all the risks of entrepreneurship in full with all the property belonging to him/her. This is a characteristic feature of the specifically individual entrepreneur, when compared with companies (especially limited liability companies), therefore, before choosing the individual entrepreneur for yourself as a form of entrepreneurship, you should understand that you are exposing your property to a risk, and in case of debt to creditors, you will have to settle up by this particular property.

Nowadays, registration of the individual entrepreneur is an extremely easy procedure, as there are several options and everyone can choose the most convenient one. You can use all of the below options to register the individual entrepreneur and choose the one that is the most optimal for you: by applying to a Center for Providing Administrative Services /TSNAP/, private registrar, notary or even through the Diia application (or web-portal). Of course, registration with the state registrar in the Center for Providing Administrative Services will take longer than with the private registrar, but it will be more attractive financially. While it is generally convenient and fast to register the individual entrepreneur through the Diia application (or web-portal), not everyone has the appropriate skills to work on a computer or smartphone.

WHAT IS NECESSARY TO REGISTER THE INDIVIDUAL ENTREPRENEUR?

In contrast to the registration of companies, the registration of a person as the individual entrepreneur requires a minimum of documents: a passport and identification code. However, it is also very important for registration to consider the issues of the types of economic activity of the future individual entrepreneur and the choice of taxation system. If you are not familiar with these issues, it is better to apply to specialists for help and advice, as they will help you to choose the appropriate types of activities according to the Classifier of Economic Activity Types /KVED/, and also will advise which taxation system, i.e. general or simplified, would be better to choose for your types of economic activity. At the same time, the simplified taxation system is further divided into 4 groups that are completely different in terms of their characteristics, interest rate and taxable base, and also provide for certain restrictions for the individual entrepreneur regarding the number of employees or types of economic activity, which the individual entrepreneur can conduct on the basis of whichever taxation group. In addition, under certain circumstances, the individual entrepreneur can be registered as a payer of value added tax as well. We would advise you to keep attention when registering yourself as the individual entrepreneur and choosing all the above parameters, as establishing the individual entrepreneur is easier than closing him/her down, especially if the individual entrepreneur paid little attention to the nuances of taxation and reporting in the process of his/her activity.

Lawyers of the Legal Association “ENWOLT” will be glad to advise you on all issues related to the registration of the individual entrepreneur in Ukraine, answer all your questions about types of economic activity and taxes, and, if necessary, provide accounting support for your future business.