How a Foreigner Can Open an Individual Entrepreneur in Ukraine: A Step-by-Step Guide

Introduction: Why Foreigners Choose the Ukrainian Business Space

Ukraine is becoming an increasingly attractive country for doing business, particularly for foreign citizens. Opening an individual entrepreneur status in Ukraine offers several advantages: a simplified tax system, relatively low business operating costs, and access to a large market. This article will serve as your detailed guide to the Individual entrepreneur registration process for foreigners, covering key aspects and requirements.

Foreign citizens who wish to conduct entrepreneurial activities in Ukraine must go through certain procedures, similar to those applied to Ukrainian citizens, but with some specific requirements. Understanding these requirements is key to successful and smooth registration.

Step 1: Preparing the Necessary Documents

Before starting the registration process, you need to gather a package of documents. The main ones include:

• Foreigner's Passport Document: This can be a citizen's passport of another country for travel abroad. It is important that the document is valid and contains information about the person, their citizenship, and date of birth.
• Translation of Passport Document: The foreigner's passport document, if it is in a language other than Ukrainian, must be translated into Ukrainian. The translation must be notarized. This is a standard requirement for any official documents submitted to Ukrainian state bodies.
• Identification Code: Foreigners who permanently or temporarily reside in Ukraine must obtain an individual tax number (identification code). It can be obtained from the tax service at their place of residence.
• Certificate of Residence Registration: For some categories of foreigners, confirmation of their legal stay and residence in Ukraine may be required.

It is important to remember that all documents issued outside Ukraine must be properly legalized. This may include an apostille or consular legalization, depending on the country of issue and its participation in international agreements. For example, for countries that are parties to the Hague Convention, an apostille is sufficient. For other countries, full consular legalization may be required, which involves sequential certification of the document by the ministries of justice, foreign affairs, and the Ukrainian embassy/consulate in the country of issue.

Step 2: Choosing the FOP Registration Method

There are several convenient ways to register as an individual entrepreneur in Ukraine:

2.1 Registration via the Center for the Provision of Administrative Services or a State Registrar

This is the classic method, which involves personally visiting a  Center for the Provision of Administrative Services  or a private notary authorized to perform state registration. You will need to submit a completed application for the state registration of an individual entrepreneur and the package of prepared documents. The state registrar will review the documents and enter the record into the Unified State Register of Legal Entities, Individual Entrepreneurs, and Public Formations (USR).

2.2. Registration through a Notary

Private notaries also have the authority to perform state registration of individual entrepreneurs. This method can be convenient if you want to receive consultation and assistance in document processing directly from a specialist. The notary will check the correctness of the application and provide advice on choosing business activities (NACE codes).

2.3. Online Registration via the "Diia" Portal

The most modern method is registration via the Diia web portal (please note that this service is not available in the mobile app). However, this option is available strictly for foreigners who already hold a temporary or permanent Ukrainian residence permit, a registered residential address in Ukraine, and a tax ID. Additionally, you will need a qualified electronic signature (QES), which can be obtained through a Ukrainian bank or an accredited certification center. If you meet all these prerequisites, the process on the portal is fully automated: you simply fill out the form online, sign it with your QES, and the system submits the data to the Unified State Register (USR). For foreigners who are abroad or do not hold a residence permit, online registration is not possible—they must register in person through a Center for the Provision of Administrative Services or a notary, or remotely via a representative with a power of attorney.

Important: Regardless of the chosen method, you will need to select the appropriate NACE codes that will be indicated in your USR extract. This will determine the specific activities you can conduct as an individual entrepreneur.

Step 3: Obtaining the USR Extract and Tax Registration

After successful registration, you will receive an extract from the USR, which confirms your status as an individual entrepreneur. This document is official confirmation of your registration as an entrepreneur.

Next, you need to register with the tax authorities. If you have chosen a simplified tax system (first, second, or third group), you need to submit an application for choosing the tax system and the single tax rate. This can be done simultaneously with individual entrepreneur registration or within 10 days after registration.

Legal Regulation: The procedure for state registration of legal entities, individual entrepreneurs, and public formations is regulated by the Law of Ukraine "On State Registration of Legal Entities, Individual Entrepreneurs, and Public Formations." Tax relations are regulated by the Tax Code of Ukraine.

Step 4: Further Steps and Specifics

After registering as an individual entrepreneur, a foreigner needs to open a business bank account to conduct commercial activities. Most Ukrainian banks offer specialized accounts for individual entrepreneurs, including tailored options for non-residents.

It is also important to maintain proper accounting of income and expenses, pay taxes on time, and submit reports to the tax authorities. Failure to comply with these requirements may result in penalties.

Important for Foreigners: If you plan to work in Ukraine on a permanent basis, ensure that your status of stay in Ukraine is legal (e.g., possession of a temporary or permanent residence permit). 

Document Translation for Other Countries: If you plan to conduct business outside Ukraine or require confirmation of your Ukrainian registration abroad, you may need to translate documents issued in Ukraine (e.g., USR extract) into the language of the respective country. Such translations must also be properly certified (notarized, apostilled, or consular legalized).

Conclusion

Opening an FOP in Ukraine for a foreigner is a completely real and achievable task, provided proper preparation and adherence to all legal requirements. Utilizing modern services like "Diia" significantly simplifies the process. Remember the importance of correct document preparation, choosing a tax system, and timely fulfillment of tax obligations. Good luck on your entrepreneurial journey in Ukraine!