Registration of Private entrepreneur
Are you willing to start your own business and get income without establishing a legal person? If this activity is systematic in nature, you should think of its correct legal arrangement. Registration of private entrepreneur is one of the simplest organizational coeval forms of conducting business in Ukraine. We can provide you with lawyer assistance on this matter.
Registration of private entrepreneur has several important advantages over the legal entity establishment including:
• More simple registration procedure;
• An private entrepreneur does not have to open a bank account;
• Opportunity to conduct simplified accounting (for example, simply keep a record of income and expenses or record exclusively of income, considering the system of taxation chosen by the individual entrepreneur);
• Opportunity to apply simplified taxation;
• A simple procedure of business liquidation;
• No need to prepare a large number of reports, such as the annual balance sheet, the report on financial results, statistical reports and simplified tax reporting;
• The ability to conduct accounting independently without the services of an accountant.
You only need a Ukrainian citizen passport or residence permit (temporal or permanent for non resident of Ukraine) and a taxpayer identification code to register as an private entrepreneur.
In addition, you have to decide on the types of economic activity. The classification of economic activity is established by the current legislation of Ukraine. You also need to choose a taxation system according to which you will pay taxes. Current legislation provides two tax systems for private entrepreneurs: simplified and generalized.
If you choose a generalized system, types of economic activities will not play an important role for you. It is enough to indicate some of them and you still may be engaged in other activities that were not specified during the registration. However, if you plan to pay taxes under the simplified taxation system, it is necessary to specify the types of economic activities that are most relevant to your business, since the simplified taxation system operates exclusively on the chosen types of activities. Though it should be noted that you may always make changes and add some types of economic activities to the list.