Starting a business
Can a foreigner register as a sole proprietor (FOP) in Ukraine?
Yes, if the foreigner is lawfully in Ukraine. The registrar checks a foreigner's capacity on the document that identifies them and is the basis for their stay, then registers the sole proprietor (FOP) within 24 hours, with no state fee. Once registered, the foreigner counts as a Ukrainian tax resident and may choose the single tax: in 2026, 5% of income in group 3. The remote e-Residency route has been closed to new applicants since September 2025.
FOP stands for fizychna osoba – pidpryiemets, an individual registered as an entrepreneur. It is the simplest business form in Ukraine: no charter, no capital, no separate legal person. The owner trades in their own name and answers for the business with their own property (Civil Code of Ukraine, Art. 52).
Who can register as a FOP?
An individual with full civil capacity has the right to engage in business that the law does not prohibit, once the business is registered (Civil Code, Art. 50). Foreigners and stateless persons who are lawfully in Ukraine have the same rights as Ukrainian citizens, with exceptions set by the Constitution, laws or treaties (Law No. 3773-VI, Art. 3(1)).
Law No. 755-IV on state registration adds the practical test. For a Ukrainian citizen, the registrar checks capacity in the civil status register. For a foreigner, it checks capacity "on the basis of the document that establishes their identity and is the basis for their stay in Ukraine" (Art. 6(7)). Before filing, ask the registrar or notary which of your documents they will accept as that basis.
The register then records, among other things:
| Field in the register | Source |
|---|---|
| Name and date of birth | Law No. 755-IV, Art. 9(4)(1), (2) |
| Ukrainian taxpayer registration number | Art. 9(4)(3) |
| Country of citizenship | Art. 9(4)(4) |
| Address of the place of residence used for contact | Art. 9(4)(5) |
| Types of activity | Art. 9(4)(6) |
So a foreigner needs a Ukrainian taxpayer number and a residential address in Ukraine before registering.
How is a FOP registered, and what does it cost?
| Point | Rule | Source |
|---|---|---|
| Documents | An application; it may include the choice of the simplified tax system or VAT registration | Law No. 755-IV, Art. 18(1)(1) |
| Where | Anywhere in Ukraine: a FOP is registered regardless of address | Art. 4(2) |
| How | On paper in person or by post, or electronically | Art. 14(1) |
| Deadline | 24 hours after receipt, weekends and holidays excluded | Art. 26(1)(1) |
| State fee | None for registering a FOP | Art. 36(1) |
| Extra documents | The registrar may not demand documents outside Article 18 | Art. 18(7) |
The state online service Diia registers a FOP automatically, free of charge, on an application signed with an electronic signature; the Diia page says the record appears in the register within two working days (diia.gov.ua). The service runs through a Diia citizen account, so it suits a foreigner who already has a Ukrainian electronic signature.
How is a foreign FOP taxed?
The starting point is residency. Under para. 177.12 of the Tax Code, foreigners and stateless persons registered as entrepreneurs under Ukrainian law are residents. The Code also names registration as an entrepreneur as a sufficient condition for locating a person's centre of vital interests in Ukraine (para. 14.1.213). Regional offices of the State Tax Service read these rules the same way: a foreigner registered as a FOP may choose the simplified system if they meet its criteria (State Tax Service in Lviv region, 2021; in Cherkasy region, 9 April 2026).
That status cuts both ways. A resident pays Ukrainian personal income tax on Ukrainian and foreign income (Tax Code, para. 162.1), so the FOP's other income comes into view too. And the single tax is closed to non-residents (para. 291.5.7), which is why the residency question comes first.
The simplified system in 2026
| Group | Who | Annual income limit, 2026 | Single tax, 2026 |
|---|---|---|---|
| 1 | Retail from market stalls and household services to the public, no employees | UAH 1,444,049 (167 minimum wages) | Set by the local council, up to 10% of the subsistence minimum: UAH 332.80 a month |
| 2 | Services to single-tax payers and the public, production and sale of goods, restaurants; up to 10 employees | UAH 7,211,598 (834 minimum wages) | Set by the local council, up to 20% of the minimum wage: UAH 1,729.40 a month |
| 3 | Any activity allowed on the simplified system, any number of employees | UAH 10,091,049 (1,167 minimum wages) | 5% of income, or 3% if the FOP is a VAT payer |
Sources: Tax Code, paras. 291.4, 293.2, 293.3; Law No. 4695-IX, Arts. 7 and 8 (subsistence minimum UAH 3,328, minimum wage UAH 8,647 from 1 January 2026); State Tax Service, 2026 rates for FOPs and 2026 tax figures for FOPs.
On top of the single tax, the State Tax Service lists for 2026:
- Unified social contribution: at least 22% of the minimum wage, UAH 1,902.34 a month, for every FOP.
- Military levy: UAH 864.70 a month for groups 1 and 2 (10% of the minimum wage), and 1% of income for group 3.
Income above the group limit is taxed at 15%, and so is income a group 1 or 2 FOP earns from an activity missing from its entry in the single tax register (Tax Code, para. 293.4).
The general system
A FOP who does not choose the single tax pays 18% personal income tax (para. 167.1) on net taxable income: revenue minus documented business expenses (para. 177.2), plus the military levy and the social contribution. It suits activities that the simplified system excludes, or businesses with large documented costs.
What about e-Residency?
Ukraine's e-Residency, branded uResidency, let a foreigner register a FOP without coming to Ukraine. It launched in September 2024 for citizens of Pakistan, India, Thailand and Slovenia. In late September 2025 the official portal announced: "We temporarily suspend the acceptance of new applications to prepare an updated uResidency format for you." On 29 October 2026 the portal still showed the application as unavailable (e-resident.diia.gov.ua).
The legal frame is still in the Tax Code. An e-resident FOP sits in group 3 if they work exclusively for non-residents, receive no Ukrainian-source income other than passive income, hire no Ukrainian citizens or residents, and stay within 1,167 minimum wages a year (para. 291.4(3)). An e-resident files the registration application electronically, with a passport for travel abroad as the identity document (Law No. 755-IV, Art. 14(8)). Until the portal reopens, none of this can be used by a new applicant.
FOP or limited company?
| Point | FOP | LLC (TOV) |
|---|---|---|
| Legal person | No; the owner trades personally | Yes |
| Liability | All personal property (Civil Code, Art. 52) | The company's property; participants are liable only up to any unpaid contribution (Law No. 2275-VIII, Arts. 2, 3) |
| Foreign owner abroad | Needs a lawful stay in Ukraine to register | Can own and run it from abroad |
| Single tax | Groups 1–3 | Group 3 for most companies, closed to a company 25% or more owned by legal entities that are not single-tax payers (Tax Code, para. 291.5.5) |
| State fee to register | None | None |
A founder who lives abroad, or who wants partners and outside investment, is usually looking at an LLC: see how a foreigner registers a company in Ukraine.
Where people get stuck
Choosing the group by the tax rate. Groups 1 and 2 have cheap fixed rates, but they limit the activity and the clients. Work for foreign clients outside those limits belongs in group 3.
Forgetting the social contribution. The UAH 1,902.34 monthly minimum applies to every FOP in 2026, according to the State Tax Service.
Treating residency as a formality. Registration makes a foreigner a Ukrainian tax resident for personal income tax (para. 177.12). Income from home may then be taxable in Ukraine too, and the home country may see it differently. Check both sides before registering.
Crossing the limit. Income above the group limit is taxed at 15%, and the FOP loses the right to stay in that group.
Planning on e-Residency. It has been paused for more than a year. A remote structure needs a different vehicle.
FAQ
Can a foreigner open a FOP in Ukraine?
Yes, if lawfully in Ukraine. The registrar checks capacity on the document that identifies the foreigner and is the basis for their stay (Law No. 755-IV, Art. 6(7)), and registers the FOP within 24 hours with no state fee.
Can a foreign FOP use the single tax?
Yes, if the FOP meets the group criteria. A foreigner registered as an entrepreneur is a Ukrainian tax resident (Tax Code, para. 177.12), and the State Tax Service confirms such a person may choose the simplified system.
How much tax does a FOP pay in group 3 in 2026?
5% of income, or 3% for a VAT payer, plus a 1% military levy and a social contribution of at least UAH 1,902.34 a month. The 2026 income limit for group 3 is UAH 10,091,049.
Can I register a FOP from abroad?
Only through e-Residency, and new applications have been suspended since September 2025. An ordinary FOP needs a lawful stay in Ukraine, a Ukrainian taxpayer number and an address of residence.
Do I need a residence permit to be a FOP?
The law asks for a document that identifies you and is the basis for your stay in Ukraine (Law No. 755-IV, Art. 6(7)). Ask the registrar or notary in advance which of your documents they accept.
Is a FOP the same as a company?
No. A FOP is the individual personally, liable with all their property (Civil Code, Art. 52). An LLC is a separate legal person.
Key Solutions registers new LLCs and sole proprietors in the Unified State Register. It prepares and files the documents, helps choose the tax regime, registers for VAT where needed, and sets up the accounting policy and a plan for the first reports.
Key Solutions (keys.ua) is part of the same group as Ukraine For ALL.
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Primary sources
- Law of Ukraine No. 755-IV of 15 May 2003 "On State Registration of Legal Entities, Individual Entrepreneurs and Public Formations", Arts. 4, 6, 9, 14, 18, 26, 36 (current text, last amended by Law No. 4833-IX of 7 April 2026) — zakon.rada.gov.ua/laws/show/755-15 (checked 2026-10-29)
- Civil Code of Ukraine No. 435-IV, Arts. 50, 52 (current text, last amended by Law No. 4863-IX of 29 April 2026) — zakon.rada.gov.ua/laws/show/435-15 (checked 2026-10-29)
- Law of Ukraine No. 3773-VI of 22 September 2011 "On the Legal Status of Foreigners and Stateless Persons", Art. 3 (current text, last amended by Law No. 4816-IX of 12 March 2026) — zakon.rada.gov.ua/laws/show/3773-17 (checked 2026-10-29)
- Tax Code of Ukraine No. 2755-VI, paras. 14.1.213, 162.1, 167.1, 177.2, 177.12 (text on zakon.rada.gov.ua, last amended by Law No. 4967-IX of 3 September 2026) — zakon.rada.gov.ua/laws/show/2755-17 (checked 2026-10-29)
- Tax Code of Ukraine, Section XIV, Chapter 1, paras. 291.4, 291.5.5, 291.5.7, 293.2, 293.3, 293.4, as published by the State Tax Service — tax.gov.ua/nk/rozdil-xiv--spetsialni-podat/edynyi-podatok/ (checked 2026-10-29)
- Law of Ukraine No. 4695-IX of 3 December 2025 "On the State Budget of Ukraine for 2026", Arts. 7, 8 — zakon.rada.gov.ua/laws/show/4695-20 (checked 2026-10-29)
- State Tax Service of Ukraine, "2026 for FOPs: new single tax and military levy amounts", 1 January 2026 — tax.gov.ua/media-tsentr/novini/968282.html (checked 2026-10-29)
- State Tax Service in Mykolaiv region, "Tax figures for FOPs for 2026", 7 January 2026 — mk.tax.gov.ua/media-ark/news-ark/969774.html (checked 2026-10-29)
- Diia, "Opening a FOP" online service — diia.gov.ua/services/reyestraciya-fop (checked 2026-10-29)
- uResidency portal, news and the suspension notice of 25 September 2025 — e-resident.diia.gov.ua/news (checked 2026-10-29)
This page describes how a procedure is structured. It is background information for planning a conversation with a lawyer or accountant, and reading it creates no client relationship. Figures follow the primary sources listed above; where a rule changes, the source changes before this page does.
Ukraine For ALL is part of a group that includes the law and tax firms named on this page. When we point you to one of them, we are pointing you to a related business.
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