Women's business under war conditions has every chance of receiving non-repayable financial assistance to support operations and further development.

The grant for the development of women's business ("Pochatok 2") is provided for the implementation of their business ideas, combining, among other things, an educational component.

As part of the grant competition, additional experience can also be gained. The main thing is to submit an application by November 8, 2026 (inclusive) and meet all necessary criteria. A grant manager from "Prikhodko & Partners" will provide more details in the article below.

What does the grant for women's business development involve?

The "Pochatok 2" grant program is a comprehensive support system for women's entrepreneurship, combining training, mentoring support, and funding.

It is designed both for women who already have a business and for women who are only planning to start one and have a viable business idea for it.

Priority sectors that will be considered under the program include agriculture, food processing, and related areas in the agro-sector.

Let us break down each component of the reward in more detail:

• a two-stage educational program (firstly, an intensive course of lectures and workshops in IT tools for business, inclusiveness, export, and energy independence of enterprises; secondly, an in-depth practical block with 9 assignments, such as an audit of the current state of business, formation of a strategic plan, preparation of an investment pitch, etc.);
• mentoring support throughout the practical block (expert consultations, review of completed assignments, refinement of shortcomings, etc.);
• grant funding upon successful completion of the training program.

Important! Classes will take place in person in 6 cities - Kyiv, Dnipro, Kryvyi Rih, Odesa, Kremenchuk, and Kharkiv, at Diia.Business centers. A full online training format is only possible in the event of a critical security threat.

Furthermore, the most active participants will take part in an educational visit to Ivano-Frankivsk, where they will have the opportunity to exchange experiences with established entrepreneurs.

What requirements must a women's business meet to receive a grant?

In addition to field of activity requirements, several other eligibility criteria should be highlighted. Each of them is presented separately in the table below.

What purposes can the women's business grant funds be spent on?

The grant for women's business development can be spent exclusively on expenses specified in the business plan that are relevant to the established goal—the development (scaling) of the business.

The main expense categories are:

• purchase of new machinery, technology, and equipment;
• ensuring energy efficiency in production;
• business automation;
• purchase of consumables (for implementing a new product line);
• product certification;
• promotion and expansion of distribution channels for manufactured products.

For your information! It is strictly forbidden to spend grant funds on salary payments, utility bills, rent, or debt repayment. To get more detailed information, we invite you to order a consultation with our grant manager.

What is the maximum grant amount available for the winner's business?

Based on the results of the training, a total of 39 participants will be able to receive a monetary award. Those selected are participants who received high scores for their presented business plan and actively participated in educational events.

In this case, a prize of UAH 100,000 is awarded. At the same time, the top 10 highest-scoring participants will have the opportunity to apply for UAH 270,000. The main emphasis will be placed specifically on the innovation and viability of the business idea.

What assistance can be obtained from a grant manager at Law Firm "Prikhodko & Partners"?

Our company's grant manager, who has experience in supporting applications for various programs, including grants for women, significantly increases your chances of success and protects you from typical mistakes. Understanding the nuances and complexities of each procedure, they will promptly and expertly:

• Provide a consultation;
• Conduct an audit of the business idea and offer options to increase its attractiveness;
• Accurately complete the grant application and develop a business plan;
• Prepare you for the pitch presentation and communication with the committee in the final stage;
• Select and prepare you for applying to subsequent grant programs (if needed).

To sum up, the "Pochatok 2" grant for women's business development is a great opportunity to take a confident step toward creating or scaling your own business.

Participants receive not just funding, but also comprehensive professional support—from training to mentoring.

We invite you to request a consultation and find out the cost of a grant manager's services when applying for a women's business development grant by filling out the form below.

In 2026, Ukrainian defence industry enterprises can obtain Defence City resident status and benefit from special government support mechanisms. This status provides access to tax incentives, opportunities to relocate production facilities, enhanced security measures, and restrictions on public access to certain information in registers.

However, residency is not granted automatically to all manufacturers of defence products. A company must meet the eligibility criteria, confirm its share of qualifying income, and undergo the document review procedure conducted by Ukraine's Ministry of Defence. The law firm “Prikhodko & Partners” provides comprehensive legal assistance in obtaining Defence City resident status, saving you time and effort.

Who Can Obtain Defence City Resident Status?

Legal entities registered in Ukraine whose activities involve the development, manufacture or supply of their own products / the performance of work and provision of services in the defence industry are eligible to apply for residency.

In particular, these include companies engaged in:

• manufacturing weapons, ammunition, military and special-purpose equipment;
• developing and manufacturing unmanned systems, electronic warfare and reconnaissance equipment;
• repairing, modernising, developing or disposing of defence-related products;
• aircraft manufacturing and production of related aviation equipment;
• manufacturing components and parts for defence products as part of participation in government contracts as permitted by law.

Important: cooperation with the Armed Forces of Ukraine, the presence of defence-related KVED activity codes / performance of government orders does not in itself guarantee resident status. The decisive factors are the company's income structure, proof of its activities, and the absence of statutory restrictions.

Main Requirements for Defence City Residents: Criteria and Qualifying Income

The main requirements are set out in Article 37 of the Law of Ukraine “On National Security of Ukraine”. One criterion is the share of qualifying income in the legal entity's total income.

Special attention should be paid to manufacturers of unmanned aerial vehicles (UAVs). Not every UAV manufacturer is entitled to the reduced 50% threshold. This criterion applies specifically to aircraft manufacturers that meet the requirements of the Law of Ukraine “On the Development of the Aircraft Manufacturing Industry”. Other manufacturers of unmanned systems are subject to the general 75% threshold.

In addition to the financial criteria, the authorities review the ownership structure, information on ultimate beneficial owners, sanctions, bankruptcy-related circumstances, breaches of certain obligations under defence contracts, and other restrictions established by law.

What Documents Are Required to Obtain Defence City Resident Status?

To apply for resident status, the applicant submits an application in the prescribed form to the Ministry of Defence of Ukraine, together with documents confirming compliance with the requirements.

The main document package includes:

1. Application for Defence City resident status. This contains the company's registration and contact details, information about designated officers, types of activities, compliance with the criteria, and performance of defence contracts.
2. Initial compliance report. This sets out how the applicant meets the requirements for residents and calculates the share of qualifying income.
3. Annual financial statements. These confirm the company's financial performance for the previous calendar year.
4. Report by an audit firm or auditor. This confirms the results of the review of the compliance report. The auditor must meet the special requirements established by law.
5. Document confirming the status of budget payments. A certificate confirming the absence of arrears in the relevant payments or a duly certified extract from the information system of the State Tax Service of Ukraine.
6. A power of attorney or a certified copy thereof, if the documents are submitted by a representative.

Particular attention must be paid to consistency between the information in the application, accounting documents, financial statements, and audit report. An incomplete package or failure to comply with the prescribed document requirements may result in the documents being returned without consideration.

How to Become a Defence City Resident?

Step 1. Check eligibility against the criteria.

The company's business activities, income structure, financial statements, tax liabilities and ownership information are reviewed. The prospects of obtaining the status and the risks of refusal are assessed.

Step 2. Calculate qualifying income and prepare the documents.

The company confirms the required share of income, prepares an initial compliance report, undergoes the required audit review, and completes the application with supporting documents.

Step 3. Submit the application to the Ministry of Defence of Ukraine.

Documents may be sent in hard copy by post or by email, subject to the legal requirements for electronic signatures.

Step 4. Review of the documents by the Ministry of Defence.

The competent authority verifies the accuracy of the information and makes a decision on granting the status based on its review.

Step 5. Entry of the company into the Defence City Register.

If the decision is positive, the Ministry of Defence enters the relevant record in the register. The organisation receives the decision granting the status and an extract from the register confirming it.

From that moment, the company acquires Defence City resident status and may use the opportunities provided under the special legal regime.

Application Review Periods and Grounds for Refusal of Defence City Resident Status

The Ministry of Defence reviews applications for Defence City resident status within 10 working days of receipt.

An application may be returned without consideration if, for example, the company submits an incomplete set of documents, fails to comply with the formatting requirements, the application is signed by an unauthorised person, or the applicant has registration-related issues specified by law.

The Ministry of Defence must notify the applicant of the return of the documents within 5 working days, indicating the reasons and recommendations for remedying the deficiencies.

Grounds for refusal may include:

• failure to meet the qualifying income requirements / the existence of statutory restrictions;
• providing inaccurate information in the application;
• loss of resident status during the preceding 12-month period specified by law, unless the relevant decision has been overturned.

A refusal decision may be challenged in court.

It should also be noted that residency requires ongoing compliance with the prescribed conditions. Each year, no later than 1 June of the year following the reporting year, the company must submit a compliance report. Failure to comply with the regime's conditions may result in the loss of resident status.

Legal Assistance in Obtaining Defence City Resident Status

Obtaining Defence City resident status requires more than submitting an application: it also calls for thorough legal and documentary preparation. This is especially relevant for businesses with mixed income sources, several lines of production, or activities under defence subcontracts. Prikhodko & Partners provides comprehensive legal assistance in obtaining resident status, including:

• a legal audit and assessment of compliance with statutory criteria;
• analysis of commercial contracts, income structure, and supporting documents;
• legal review of the qualifying income calculation and preparation of documents;
• preparation of the application and its submission to the Ministry of Defence of Ukraine;
• assistance during the application review, preparation of explanations, and legal protection in the event of refusal.

Our lawyers also advise on ongoing compliance with residency requirements, the use of tax incentives, and confirmation of a company's status as critically important for the purpose of reserving employees from mobilisation.

Planning to obtain Defence City resident status in 2026? Leave a request on our website, and our lawyer will call you back.

Ukraine is preparing changes to the grounds for deferment from mobilization and the rules for reserving employees from mobilization. In particular, the legislative initiatives envisage stricter requirements for deferments on family grounds, reduced employee reservation quotas, and a revision of the procedure for enterprises to obtain critically important status.

The proposed restrictions would affect both citizens who have relatives with disabilities and businesses that rely on employee reservation to retain their staff.

Important! As of October 13, 2026, these proposals have not yet entered into force. Therefore, there are currently no grounds for automatically cancelling deferments or applying the new employee reservation quotas.

The law firm “Prikhodko & Partners” provides legal advice and assistance with obtaining deferments from mobilization, as well as support on other military law matters.

What changes to mobilization deferments are proposed in 2026?

The main objective of the initiative is to harmonize the legal grounds for deferment from mobilization and discharge from military service. Currently, these matters are governed by different laws:

• Article 23 of the Law of Ukraine “On Mobilization Preparation and Mobilization” defines the categories of citizens entitled to a deferment.
• Article 26 of the Law of Ukraine “On Military Duty and Military Service” establishes the grounds for the discharge of service members from military service.

Differences between these provisions create situations in which certain family circumstances entitle a person to a deferment but are insufficient grounds for discharge from the Armed Forces of Ukraine. However, it should be noted that the proposed approach to resolving these discrepancies would narrow some of the grounds for obtaining a deferment.

Whose mobilization deferment could be cancelled or restricted?

All the changes listed above are currently proposals. Until the legislation is amended, the relevant categories of persons liable for military service retain their right to a deferment under the existing conditions.

Legal consequences of reducing the grounds for deferment

From a legal perspective, the most significant consequence of the proposed amendments would be stricter requirements for proving eligibility for a deferment.

First, two concepts must be distinguished: the fact that a family member has an officially recognized disability and the need to provide that person with permanent care.

These are different legal circumstances supported by different documents. If lawmakers introduce a mandatory care requirement, proof of disability alone may no longer be sufficient in certain cases.

Additional questions arise regarding proof that no other persons are available to provide care. The mere existence of relatives does not always mean that they are actually able to provide the necessary assistance. Therefore, legislative amendments should establish clear criteria for assessing these circumstances.

Particular attention should also be paid to whether the proposed restrictions comply with the constitutional principles of legal certainty, proportionality, and the protection of citizens' rights. In particular, Article 22 of the Constitution of Ukraine prohibits narrowing the content and scope of existing rights and freedoms when new laws are adopted.

Can an already granted deferment be cancelled in 2026?

At present, the mere fact that legislative amendments are being prepared does not constitute grounds for terminating an existing deferment from mobilization.

Legally, it is important to distinguish between terminating an existing deferment and refusing to grant or extend one under new conditions. In each case, a decision by the competent authority must be based on the legislation currently in force. An unlawful refusal or decision to cancel a deferment can be challenged through the procedure established by law.

New rules for critically important enterprises and employee reservation in 2026

Another area of proposed changes concerns the reservation of employees liable for military service and the procedure for obtaining critically important enterprise status. According to the available information, the Cabinet of Ministers is working on amendments to Resolution No. 76, which governs the employee reservation procedure. In particular, the proposed changes would address:

1. Reduction of employee reservation quotas

For certain categories of companies, the maximum proportion of employees liable for military service who may be reserved is expected to be reduced.

In particular, the following changes are being discussed:

• Defense industry and energy sector - reducing the maximum reservation rate from 100% to 85%.
• District heating, water supply, wastewater management, and household waste collection enterprises - reducing the respective limits from 75% to 60%.

2. Changes to the method of calculating the employee reservation quota

Another proposed change concerns how the standard 50% employee reservation limit is calculated. Under the proposal, employees who already have a deferment on other grounds would be excluded from the total workforce used for the calculation. This includes, in particular, students, persons caring for relatives, and parents of three or more children.

3. A new procedure for obtaining critically important enterprise status

The draft also envisages establishing a Coordination Center under the Cabinet of Ministers of Ukraine, with 17 representatives of government authorities proposed as its members.

Under the published model, the Center would be authorized to issue recommendations on:

• designating businesses as critically important;
• approving increased employee reservation limits above 50%;
• reviewing and potentially revoking critically important enterprise status.

In effect, this would introduce an additional approval stage that could affect the ability to obtain critically important enterprise status and exercise the right to reserve employees from mobilization.

At the same time, the information currently available about the draft does not provide exhaustive answers regarding document review deadlines, the criteria for issuing recommendations, or the mechanism for appealing them.

4. Review of criticality criteria by October 20, 2026

Relevant ministries and regional state administrations are also expected to be asked to review sectoral and regional criteria by October 20.

What should persons liable for military service and businesses do if the law changes?

Preparing for potential legislative changes primarily involves reviewing existing legal grounds and supporting documents.

Persons liable for military service are advised to check the legal basis for their current deferment, its validity period, and whether their documentation is complete. Particular attention should be paid to cases where eligibility depends on proving permanent care or other family circumstances.

Businesses should consider conducting a legal audit of their compliance with the criteria for critically important enterprise status, checking whether their designation remains valid, reviewing staffing arrangements, and assessing the potential effects of reduced employee reservation quotas.

Legal assistance with deferments, critically important enterprise status, and employee reservation

The lawyers at “Prikhodko & Partners” provide legal assistance in military law matters, including:

• obtaining and renewing deferments from mobilization;
• challenging decisions of Territorial Recruitment and Social Support Centers (TRSSCs);
• obtaining and confirming critically important enterprise status;
• legal support for reserving employees from mobilization;
• auditing an enterprise's compliance with the criteria for critically important status;
• challenging decisions of government authorities concerning critically important status and employee reservation.

If you have questions about retaining your deferment or employee reservation status, contact the law firm “Prikhodko & Partners” for a consultation. Our specialists will analyze your situation, identify lawful options for protecting your rights, and propose the legal assistance you need.

Have questions? Submit a request on our website, and a military lawyer will contact you.

Under martial law in Ukraine, the practice of coordinating efforts between various regulatory authorities to inspect military registration compliance is becoming increasingly common. In particular, this involves joint or coordinated inspections conducted by the Main Directorate of the State Labor Service of Ukraine (State Labor Service) and Territorial Recruitment and Social Support Centers (TCCs). For employers, this means the need for additional control over documentation, as mistakes can result in significant financial penalties and administrative liability. To avoid legal complications, seek assistance from lawyers specializing in both military and labor law. Such specialists are part of the team at the law firm «Prikhodko & Partners».

Background and Legal Grounds for Cooperation

The State Labor Service and TCCs have entirely different areas of authority defined by current legislation. The State Labor Service monitors the formalization of employment relationships, payment of wages, and occupational safety. TCCs, in turn, are responsible for mobilization preparation and maintaining military registration records of conscripts, persons liable for military service, and reservists.

However, the Procedure for Organizing and Maintaining Military Registration, approved by Resolution No. 1487 of the Cabinet of Ministers of Ukraine, explicitly provides for cooperation between government authorities. During scheduled or unscheduled inspections, the State Labor Service identifies whether employment contracts have been properly concluded. Information about officially employed individuals automatically becomes available through state registers, allowing TCCs to cross-check data on persons liable for military service. Moreover, legislation permits government authorities to exchange information to identify individuals evading military obligations or employers concealing the actual number of employees.

What Is Checked During Such Inspections

Each authority acts strictly within its legal powers, but their areas of interest closely overlap when analyzing personnel documentation. Representatives of the State Labor Service and TCCs focus on the following aspects:

Risks and Liability for Businesses

The combined attention of these authorities significantly increases the risk of detecting violations. If the State Labor Service identifies an undeclared employee, the company may face a fine amounting to tens of thousands of hryvnias for each such person. If the employee is also liable for military service but is not registered or has failed to update their information, the TCC may become involved.

Violations of legislation on mobilization preparation and mobilization result in substantial administrative fines imposed on company officials. Under martial law, these fines have increased significantly, making every mistake in personnel records potentially costly for a company's budget. Additionally, if TCC orders regarding employee notification of summonses are ignored, the head of the company may face personal administrative liability.

How Employers Should Prepare for Inspections

To minimize risks, companies should take proactive measures. First, an internal audit of the HR department should be conducted. It is necessary to verify that every male employee (as well as women in certain professions, such as medical professionals) has an up-to-date military registration document confirming their registration status.

Second, companies should establish a clear document management procedure. Timely submission of notifications to TCCs regarding changes in military registration data or the hiring and dismissal of employees should become a mandatory practice. Third, employers must ensure that responsibility for maintaining military registration records has been officially assigned to a specific employee by an order issued by the company director and that the employee receives the appropriate additional payment if required by the collective agreement or applicable legislation.

It is important to remember that regulatory authorities must act strictly within the law. Employers have the right to request inspection authorizations and official identification documents and to verify the legal grounds for an inspection. A proper understanding of legal requirements by company management and HR personnel is the best protection against unlawful actions or penalties.

To request a consultation on this matter, please complete the contact form on our website.

Private enterprises that have a social purpose and operate in relevant areas can receive funding to cover their project implementation needs. It is worth noting that when making a decision on awarding a grant, the evaluation will include not only financial indicators, but also the social impact.

Social businesses must demonstrate experience, competence, and the ability to meet the needs of their target audience. In addition, providing a grant for social enterprise needs should also encourage businesses to create new jobs.

Grant managers at “Prikhodko & Partners” will explain what this grant program entails and how to navigate all evaluation stages.

Social Enterprise: Who Can Receive a Grant?

In the table, we analyze the main selection criteria for social businesses.

Important! To meet the eligibility criteria, a social enterprise should confirm its official registration, absence of tax debt, financial transparency, etc.

To obtain more detailed information (including opportunities to attract additional funding under the program for own business), we invite you to request a consultation with our grant manager.

In Which Areas Can a Social Enterprise Secure a Grant?

This grant program will support projects with proven business models that aim to scale.

In total, several key areas will be covered, including:

1. medical technologies (increasing service accessibility, implementing digital diagnostics);
2. environmental sustainability (renewable energy, recycling hazardous waste);
3. educational skills development (inclusive educational platforms, staff retraining, or professional qualification programs);
4. economic equality (support for small business);
   civil society (countering disinformation, strengthening legal capacity);
5. social protection (assistance to refugees, IDPs, veterans, etc.);
6. agriculture (implementation of new sustainable agrotechnologies);
7. urbanism (resolving issues of sustainable transport and others).

For your information! A business participating in the grant for social enterprise needs must justify the feasibility of implementing certain measures and describe their economic and social impact in a positive context. Dedicated sections in the grant application and budget will be assigned for this purpose.

What Is Needed for a Social Enterprise to Participate in the Grant Program?

The general package of documents for participation includes:

• Constituent documents (statute and extract of registration);
• Certificates and other documents confirming financial condition and co-financing capability (in particular, a certificate of no tax arrears, bank statement);
• Sufficient staff team (staffing table and resumes of key team members for the implementation of the respective social project);
• Project documentation (grant application form, project cost estimate).

How Much Funding Can Be Secured from the Grant for Social Enterprise Needs?

The total amount of funding depends on the level of compliance of the enterprise with the criteria of the grant program, but will not exceed £150,000 (approximately UAH 8,890,800).

In addition to funding, the winner can also qualify for training (a 16-week intensive program) and search for potential partners at an international level.

How Will a Grant Manager from “Prikhodko & Partners” Help You?

Involving a grant manager will significantly increase your chances of receiving funding. Since the application process requires a social enterprise to combine legal, financial, and project competencies, our specialist takes on the full cycle of work.

Among key services for grant support, the following should be highlighted:

• preliminary project audit and consultation;
• professional drafting of the budget and project description;
• support in preparing the entire package of documents for submission;
• preparation for the interview with the grantor, and others.

Thus, a grant for social enterprises will support businesses actively working to address pressing social and humanitarian challenges. However, high competition and strict grantor requirements demand proper document preparation and a well-reasoned project presentation during the interview.

Don't waste time: find out the cost of our specialists' services and submit your grant application for a social enterprise grant.

The opportunity to receive up to UAH 1 million for military service attracts the attention of many Ukrainian citizens under the age of 25. This refers to the government program "Contract 18–24", which provides for voluntary enlistment under a short-term military contract and special conditions of service. However, the decision to sign a contract should be made only after carefully reviewing its terms and understanding your rights. If you have questions regarding contract registration, payments, military service, or compliance with contractual obligations, you can seek legal assistance from a military lawyer.

One Million for a Military Contract Under 25: What Does the Program Offer?

"Contract 18–24" is a special mechanism for recruiting young Ukrainian citizens for military service for a specified period. According to the Ministry of Defence of Ukraine, program participants are entitled to a one-time financial reward of UAH 1 million, as well as monthly military remuneration, additional payments for performing combat and special missions, and social guarantees provided by law.

It is important to understand that UAH 1 million is not necessarily an amount that a service member receives immediately after signing the documents. The reward is paid in installments. In particular, UAH 200,000 is provided after signing the contract and commencing military duties, while another UAH 300,000 is paid after completing the required training and being assigned to combat or special missions. The remaining amount is paid in accordance with the established conditions of the program.

Therefore, before signing the contract, it is essential to verify which specific conditions apply to the particular position, military unit, and type of service.

Military Lawyer Services

A military lawyer can help resolve legal issues that arise before, during, or after military service. Legal assistance may be relevant both for individuals planning to sign a military contract and for active-duty service members and their families.

The main types of legal assistance include consultations, document analysis, preparation of applications, military reports and other requests, development of a legal position, and support in communications with military units, Territorial Recruitment and Social Support Centers (TCC and SSC), Military Medical Commissions (MMC), and other authorities.

In more complex situations, a lawyer may represent the client's interests and help protect their rights in accordance with the law. The purpose of legal assistance is not merely to provide general information but to develop a specific course of action based on the circumstances of each case.

Military Lawyer Consultation

A consultation with a military lawyer allows an individual to assess their specific circumstances before taking a legally significant step. During the consultation, the lawyer reviews documents and case details, identifies potential risks, verifies compliance with legal requirements, and considers available options.

When it comes to the "Contract 18–24" program, a specialist can help clarify the program's terms, application procedure, available payments, duration of military service, and legal consequences of signing the contract. This is particularly important when an individual's circumstances differ from standard cases or when problems with documents or payments have already arisen.

Online Military Lawyer Consultation

There is no need to visit the office in person. An online military lawyer consultation allows clients to receive legal assistance remotely, regardless of their actual location. This format is particularly convenient for military personnel, their relatives, and other individuals seeking legal support.

If necessary, documents can be submitted in advance for review. The lawyer will then explain the legal situation and recommend an appropriate course of action.

Benefits of Working with Prikhodko & Partners

• Individual case assessment. Our lawyers consider not only general legal provisions but also the documents and specific circumstances of each client.
• Practical legal assistance. When necessary, our specialists help prepare military reports, applications, official requests, and other legal documents.
• Support at different stages. Clients can receive assistance when a legal issue first arises and throughout the subsequent legal process.
• Focus on legal outcomes. Our objective is to identify a lawful method of protecting the client's rights and help implement the chosen legal strategy consistently.

Legal Assistance in Military Law Matters

Military law covers a much broader range of issues than simply signing a military contract. Legal assistance may be required regarding military medical examinations, fitness for military service, mobilization, military registration, obtaining deferments, transfers, discharge from military service, payments, military remuneration, social guarantees, and other matters.

A separate area of practice involves protecting the rights of military personnel in disputes with military units or government authorities. Each case requires an assessment of the relevant documents and legal grounds.

Why Should You Contact a Military Lawyer?

Military legislation has its own specific requirements, and decisions related to military service may have long-term consequences. Assessing a situation independently based on information found online does not always allow individuals to consider all legally significant circumstances.

Consulting a military lawyer provides an opportunity to obtain a professional assessment of documents, understand your rights and obligations, and determine the appropriate sequence of further actions. Legal support is particularly important when disputes arise concerning payments, service conditions, documents, MMC conclusions, or other legally significant matters.

Stages of Cooperation with a Military Lawyer

Cooperation usually begins with the client's initial inquiry and a brief description of the situation. The lawyer then analyzes the circumstances and submitted documents, identifies legally significant facts, and assesses potential risks.

Based on this assessment, a legal strategy is developed. The client receives an explanation of the available options and the recommended course of action. If further legal assistance is required, the lawyer helps implement the chosen strategy, from preparing documents to representing the client's interests within the scope of the lawyer's authority.

Cost of Military Lawyer Services

The cost of legal assistance is determined individually. It depends on the complexity of the situation, the number of documents, the need for detailed analysis, the scope of work, and the lawyer's level of involvement.

Before starting cooperation, the client can clarify the scope and cost of legal services depending on the specific task.

Conclusion

"One Million for a Military Contract Under 25" is not simply a one-time payment but a comprehensive set of military service conditions that must be carefully evaluated before signing any documents. The "Contract 18–24" program provides for specified service periods, installment payments, and additional guarantees. However, the specific conditions may vary depending on the type of military service.

If you have questions regarding a military contract, payments, military service, or the protection of service members' rights, consulting a military lawyer in Odesa will help you assess your situation from a legal perspective and determine the appropriate next steps.

For defense industry companies, employee reservation from mobilization is an important mechanism for ensuring uninterrupted operations during wartime. That is why the Ukrainian government introduced the special Defence City regime, under which residents are entitled to obtain critical enterprise status and apply for the reservation of up to 100% of their employees liable for military service.

However, obtaining Defence City resident status does not automatically grant critical enterprise status. Prikhodko & Partners Law Firm provides comprehensive legal assistance with obtaining Defence City residency and subsequently securing critical enterprise status.

What Is Defence City and What Benefits Do Residents Receive?

Defence City is a special support regime for Ukrainian defense-industrial enterprises, introduced to promote the production of weapons, military equipment, ammunition, and other defense products.

The main provisions governing residency are established by the Law of Ukraine "On National Security of Ukraine", particularly Articles 36–41, while taxation rules are regulated by the Tax Code of Ukraine.

Residents are entitled to several benefits:

• Tax incentives. The possibility of applying exemptions from corporate income tax, land tax, environmental tax, and real estate tax, subject to statutory conditions.
• Special export conditions. Simplified procedures for certain international transfers of military products.
• Information protection. Restrictions on public access to certain information about residents to enhance the security of defense enterprises.
• Support for production facilities. Special mechanisms for business relocation, improving production security, and leasing state or municipal property.
• Employee reservation. The possibility of obtaining critical enterprise status and reserving up to 100% of employees liable for military service from mobilization.

Can Defence City Residents Obtain Critical Enterprise Status?

Holding valid Defence City resident status is recognized as a separate ground for confirming an enterprise's importance to the defense-industrial complex. The relevant sector-specific criteria were approved by Order  № 722 of the Ministry of Defence of Ukraine, while the procedure for obtaining critical enterprise status is governed by Resolution No. 76 of the Cabinet of Ministers of Ukraine.

Therefore, a company that already holds Defence City resident status may use this status as a basis for obtaining critical enterprise designation. However, it is important to distinguish between these two statuses: residency grants access to a special state support regime, whereas critical enterprise designation provides the legal basis for reserving employees from mobilization.

What Are the Requirements for Obtaining Critical Enterprise Status under Defence City?

The key requirement for applying the special sector-specific criterion is valid Defence City resident status, confirmed by a relevant decision of the Ministry of Defence of Ukraine.

According to subparagraph 4 of paragraph 2 of the Criteria, residency is an independent criterion for recognizing a company as having significant importance to the national economy in the defense-industrial sector.

At the same time, legislation establishes separate requirements for obtaining Defence City resident status. In particular, the share of qualifying income from defense-related activities must amount to:

• At least 75% of the company's total income — as a general rule.
• At least 50% — for aircraft manufacturing entities subject to special legislation.

Enterprises must also comply with mandatory criteria, particularly those concerning tax arrears and salary levels.

Under Part 7 of Article 37 of the Law of Ukraine "On National Security of Ukraine", Defence City residency is unavailable to enterprises that fall under certain statutory restrictions.

Important: Defence City residents must comply with the established requirements throughout the entire residency period, including maintaining the required share of qualifying income.

How to Obtain Critical Enterprise Status as a Defence City Resident?

The procedure for obtaining critical enterprise status for this category involves submitting an application to the Ministry of Defence of Ukraine along with documents confirming compliance with the relevant criterion.

Main stages:

1. Status verification. The company must ensure that it holds valid Defence City resident status and meets the requirements for applying the special criterion.
2. Preparation of the application. The application must contain information about the organization, the legal grounds for obtaining critical enterprise status, and other information required for its consideration.
3. Preparation of supporting documents. For the initial confirmation of compliance with the sector-specific criterion, the resident submits an application and a copy of the Ministry of Defence's order granting resident status.
4. Submission of documents. The application is submitted to the Ministry of Defence of Ukraine in accordance with the established procedure.
5. Obtaining a decision. Following the review of the submitted documents, the authorized authority makes a decision on granting critical enterprise status.

For businesses that already hold this status and are undergoing reconfirmation, the required documents differ. In particular, during the review of decisions in 2026, the Ministry of Defence required residents to submit an application, a certificate confirming the average accrued salary for the previous month, and the relevant tax calculation report.

Employee Reservation for Defence City Residents in 2026

Defence City residents that have obtained critical enterprise status may qualify for the reservation of up to 100% of their employees liable for military service.

Employee reservation is processed through the Diia portal after the enterprise receives the relevant critical enterprise designation and is included in the Unified List. To complete the procedure, the employer must verify the established reservation limit, ensure that employees' military registration records are up to date, prepare a list of employees liable for military service, and submit an application.

However, the right to reserve 100% of employees does not mean that every employee automatically receives a deferment from mobilization. During the application review, information concerning employment relationships, military registration, and other circumstances affecting eligibility for reservation is verified.

Therefore, obtaining critical enterprise status is only the first step. To maintain employee reservations, employers must monitor the validity of the relevant decision and promptly update employee information.

Legal Assistance with Obtaining Critical Enterprise Status and Employee Reservation under Defence City

Prikhodko & Partners Law Firm provides comprehensive legal support to defense-industrial enterprises in obtaining critical enterprise status and reserving employees from mobilization.

As part of our legal services, our lawyers:

• Conduct a legal audit of the enterprise and verify compliance with the established criteria.
• Analyze documents confirming the relevant status.
• Prepare the necessary applications and provide legal support during their consideration by the Ministry of Defence.
• Assist with obtaining, extending, and restoring employee reservations from mobilization.
• Provide legal assistance in cases involving refusal to grant critical enterprise status or difficulties with employee reservation.

If your enterprise is already a Defence City resident or plans to obtain this status, contact the lawyers at Prikhodko & Partners. Our specialists will analyze your situation, determine the necessary course of action, and provide legal support at every stage.

Do you have any questions? Submit a request through our website, and our military law specialist in Defence City matters will contact you.

An inspection by the Territorial Recruitment and Social Support Center (TCC) involves reviewing a significant number of documents. Therefore, the question of which documents the TCC checks at an enterprise is particularly relevant for most employers in 2026. Prikhodko & Partners Law Firm provides comprehensive support with military registration — from auditing and preparing documentation to managing military records and providing legal assistance during inspections.

When Can the TCC Conduct an Inspection?

Inspections of military registration at enterprises are conducted in accordance with Procedure № 1487 and are divided into two types — scheduled and unscheduled. Scheduled inspections are carried out according to approved plans of local authorities (published on the official websites of District State Administrations or other government agencies).

The inspection notice must be provided no later than ten days before the inspection begins.

The frequency of inspections depends on the categories of employees:

• Enterprises employing reserved employees liable for military service or individuals with mobilization orders are inspected annually;
• other enterprises are inspected once every four years.

In addition, the TCC may conduct unscheduled inspections. Therefore, the absence of a company from the original inspection schedule for 2026 does not necessarily mean that it will not be inspected during the year.

What Does the TCC Check at an Enterprise in 2026?

During an inspection, the TCC assesses not only the availability of individual documents but also the entire system for organizing and maintaining military registration records.

Thus, an inspection covers not only personnel and registration documents but also the employer's compliance with requirements concerning interaction with the TCC, data reconciliation, reservation from mobilization, and employee notification.

Which Documents Does the TCC Check During an Inspection?

Before an inspection, employers should primarily prepare the following:

1. Personal military registration lists and operational registration records of conscripts, persons liable for military service, and reservists.
2. Military registration documents and supporting documents used to enter the relevant information into the registration lists.
3. Documents concerning the responsible person — an appointment order, a job description specifying their powers, and professional development records.
4. Materials concerning the reconciliation of military registration data — schedules and confirmation of completed reconciliations with TCC records.
5. Confirmation that employees have been informed of the military registration rules.
6. A register of the results of military registration inspections.
7. Notifications and other information submitted to the TCC.
8. Documents concerning the hiring and dismissal of employees liable for military service.
9. Documents concerning the reservation of employees liable for military service from mobilization (if applicable).
10. Materials concerning employee notification in accordance with TCC orders.

Before an inspection, particular attention should be paid not to the quantity of documents but to their internal consistency. Information in the registration lists must correspond to personnel documents and current employee data, while notifications to the TCC must be submitted within the established deadlines.

Key Issues Examined During a Military Registration Inspection

In practice, a military registration inspection can be summarized as a series of specific questions that an organization must be able to answer with supporting documentation. In particular, TCC representatives may be interested in the following:

• Who is responsible for maintaining military registration records at the enterprise, and under which appointment order?
• Are all conscripts, persons liable for military service, and reservists included in the personal military registration records?
• Is the information in the personal military registration lists up to date?
• When was the last reconciliation of employee data with their military registration documents and TCC records conducted?
• Has the enterprise notified the TCC about employee hiring, dismissals, and changes to registration data?
• How are employees informed about military registration rules?
• How does the enterprise comply with TCC orders concerning the notification of persons liable for military service?
• Does the enterprise have employees reserved from mobilization, and is their reservation information up to date?
• Are the established deadlines for submitting notifications and updating military registration data being met?
• Were any violations identified during previous inspections, and has the enterprise corrected them?

Most Common Violations During TCC Inspections at Enterprises

One of the most common violations is improper organization of military registration. This includes the absence of a designated responsible person, inconsistencies between the actual duties performed and the assigned responsibilities, or an inadequate distribution of powers.

Another common category of violations concerns outdated or incorrectly maintained registration data. Inspections often reveal discrepancies in registration lists, missing or outdated military registration documents, delays in updating information, or failure to conduct the required reconciliations.

The TCC also pays particular attention to the director's fulfillment of obligations regarding interaction with the TCC, including late submission of notifications, failure to properly process employee notification orders, missing supporting documentation, and errors in information concerning employees reserved from mobilization.

Additional risks arise when violations were identified during a previous inspection but the company failed to correct them in full.

Legal Support from Prikhodko & Partners

Prikhodko & Partners Law Firm provides comprehensive legal support to businesses in matters of military registration, including:

• conducting military registration audits at enterprises;
• reviewing registration lists, orders, notifications, registers, and other mandatory documents;
• analyzing the accuracy and validity of employee reservations from mobilization;
• identifying risks and violations that may lead to inspection findings;
• assisting with the preparation and correction of necessary documentation;
• advising responsible employees on military registration procedures;
• providing legal support during TCC inspections;
• helping prepare a legal position and supporting documents if violations are identified or disputes arise.

Such legal support allows companies not only to prepare for a specific inspection but also to establish a military registration system that complies with current legal requirements and minimizes business risks.

If your organization is expecting a TCC inspection or wishes to assess the state of its military registration records in advance, the lawyers at Prikhodko & Partners can conduct an audit and provide practical recommendations tailored to your company's specific circumstances. Submit a request on our website, and a lawyer will contact you.

Prikhodko & Partners Law Firm and the Embassy of the Federative Republic of Brazil in Ukraine have signed a memorandum of cooperation.

Under the agreement, our team will provide initial legal assistance to Brazilian citizens staying in Ukraine in matters related to:

• criminal law;
• migration law;
• military law.

The purpose of this cooperation is to ensure that Brazilian citizens have access to qualified legal assistance in Ukraine, receive prompt clarification of their rights, and understand the available legal remedies in situations requiring professional legal support.

For Prikhodko & Partners, international cooperation and legal support for foreign nationals are important areas of practice. Our team has experience handling matters involving foreign citizens, diplomatic missions, and Ukrainian government authorities.

We thank the Embassy of Brazil in Ukraine for its trust and the opportunity to develop this cooperation.

We look forward to a productive and long-term partnership aimed at effectively protecting the rights and legitimate interests of Brazilian citizens in Ukraine.

An inspection of the state of military registration at an enterprise may result in the identification of violations or deficiencies in documentation, personal military registration lists, the organization of the work of the responsible person, data reconciliation, or the performance of other employer obligations. In such a case, simply correcting the identified errors is not enough. The head of the enterprise must organize the elimination of the deficiencies and, within the established period, inform the authority that conducted the inspection of the results. One practical way to comply with this requirement is to prepare and submit a letter on the elimination of deficiencies identified during an inspection by the Territorial Recruitment and Social Support Centre (TCC and SS).

A properly prepared letter should correspond to the inspection findings and the measures actually taken by the enterprise. If the TCC identified several violations, it is advisable to provide information on how each of them was remedied separately and, where necessary, attach supporting documents.

What is a letter on remedying deficiencies identified during a TCC inspection?

This is a document by which an enterprise informs the authority that inspected the state of military registration about the measures taken to correct the identified violations.

The basis for preparing such a letter is the result of the inspection. In accordance with the Procedure for Organizing and Maintaining Military Registration of Conscripts, Persons Liable for Military Service and Reservists, heads of enterprises, institutions, and organizations must organize and ensure the elimination of identified deficiencies.

Thus, the letter is not merely a formality: the enterprise must demonstrate what exactly was corrected and what organizational or documentary measures were taken following the inspection.

When must a letter on remedying deficiencies be submitted to the TCC?

The key deadline is established by paragraph 86 of Procedure  № 1487. The head of the enterprise must inform the head of the authority that conducted the inspection about the measures taken and the elimination of deficiencies within 30 days from the date the inspection results are received.

The date on which the inspection results are received is therefore crucial for calculating this deadline. It is important for the enterprise to record the date of receipt of the relevant document and not delay the analysis of the TCC’s comments.

If remedying a specific violation requires obtaining additional documents or taking actions that do not depend solely on the enterprise, it is advisable to separately assess how this should be reflected in the response and which documents can confirm the measures already taken.

What deficiencies may the TCC identify during an inspection?

An inspection assesses not just one document, but the overall organization and maintenance of military registration. In particular, the inspection covers the enterprise’s compliance with statutory obligations, the maintenance of relevant documentation, and the results of correcting violations identified during previous inspections.

In practice, comments may concern incorrect preparation of personal military registration lists, discrepancies in employees’ registration data, the absence of required internal documents, failure to comply with procedures for hiring persons liable for military service, late notification of changes in registration data, improper reconciliation procedures, or the organization of the work of the person responsible for military registration.

Each comment should be analysed separately, as the method of correction depends on the nature of the identified violation.

How to remedy deficiencies after a TCC inspection?

First of all, the document recording the inspection results must be analysed and a complete list of comments should be prepared. After that, it is necessary to determine which documents or military registration data must be brought into compliance with legal requirements.

If the problem concerns the internal organization of military registration, amendments to orders and other internal documents of the enterprise may be required. If incorrect or outdated employee data has been identified, the correct information must be established and the actions required by law must be taken.

The results of the inspection and the subsequent elimination of deficiencies must also be reflected in the relevant military registration documentation. Procedure № 1487 provides for maintaining a register of the results of inspections of military registration, which records the inspection results, identified deficiencies, the manager’s decision, and a note confirming their elimination.

What should a letter to the TCC on remedying deficiencies contain?

It is advisable to specify the details of the enterprise and the TCC, refer to the inspection results, indicate the date and number of the relevant document, list the identified comments, and describe the specific measures taken to eliminate them.

For example, if the TCC identified several deficiencies, the response may be structured according to the following principle: “identified violation — actions taken by the enterprise — result — supporting document”.

Where necessary, copies of orders, corrected documents, notifications, extracts, and other materials confirming the actual elimination of deficiencies may be attached to the letter. In practice, such letters are prepared in free form, as Procedure № 1487 does not establish a separate standardized form for notifying the authorities of the elimination of deficiencies.

Order on remedying deficiencies following a TCC inspection

After receiving the inspection results, the head of the enterprise must organize the work required to correct the identified violations. In practice, the manager’s decision on remedying deficiencies may be formalized by an internal order specifying the required measures, responsible employees, and deadlines for implementation. Information about the manager’s decision is also recorded in the inspection results register.

It is important that the internal order, the actual actions of the enterprise, and the information provided in the letter to the TCC do not contradict one another.

How can the elimination of military registration deficiencies be confirmed?

The amount and type of supporting evidence depend on the violations identified. Such evidence may include:

1. updated personal military registration lists;
2. internal orders of the enterprise;
3. documents on the appointment of the responsible person;
4. confirmation that the required notifications were submitted;
5. documents concerning data reconciliation or other supporting materials.

It is not advisable to limit the response to a general statement such as “all deficiencies have been remedied” if the inspection results contain a specific list of violations. It is safer to provide structured information on each point and retain documents confirming that the relevant corrective measures were actually taken.

In addition, during subsequent inspections, the organization and effectiveness of the measures taken to eliminate deficiencies identified during a previous inspection may also be assessed.

What should an enterprise do if it disagrees with the results of a TCC inspection?

Not every comment made by the inspecting authority automatically means that the enterprise has actually violated the law. If the inspection findings contradict the enterprise’s documents or are based on an incorrect application of legal requirements, they should be analysed before a response is submitted.

In such a situation, it is important not to formally admit a violation with which the enterprise actually disagrees. It is advisable to develop a legal position, collect supporting documents, and determine the appropriate response depending on the content of the inspection findings.

Can deficiencies in military registration lead to liability?

Procedure № 1487 expressly provides that officials of enterprises, institutions, and organizations are liable in accordance with the law for violations of legislation in the fields of defence, mobilization preparation, and mobilization. This includes certain violations of military registration rules and the performance of employers’ statutory duties.

At the same time, the existence of a comment in the inspection findings and the issue of bringing a specific person to administrative liability should be considered separately. The nature of the violation, the factual circumstances, the enterprise’s documents, and compliance with the applicable procedure are all relevant.

Legal assistance after a TCC inspection of an enterprise

A lawyer can analyse the results of the TCC inspection, determine which comments have a proper legal basis, develop an action plan for correcting the violations, and prepare a letter on remedying deficiencies identified during the TCC inspection. If necessary, the lawyer can also review the enterprise’s military registration documentation, assist with preparing internal orders and supporting documents, and develop a legal position regarding comments with which the enterprise disagrees.

The lawyers of “Prikhodko & Partners” will help eliminate military registration deficiencies identified during a TCC inspection and properly report on the measures taken within the established deadline. Submit a request for a consultation — we will analyse the inspection results and the enterprise’s documents and determine what actions are required to bring military registration into compliance with the law.

The procedure for returning after being absent without leave (AWOL) from a place of military service changed significantly in 2026. In particular, until September 20, 2026 inclusive, a simplified voluntary return procedure was available to a specific category of service members. After this mechanism expired, return is carried out under the general procedure.

The law firm «Prikhodko & Partners» analyzes current court practice and legislative changes concerning service members, AWOL cases, return to military service, and exemption from criminal liability. Therefore, questions such as how to return after AWOL in 2026–2027, whether criminal proceedings may be closed, and what to do if information has already been entered into the Unified Register of Pre-Trial Investigations require an individual legal assessment.

What Is AWOL and What Liability Does It Entail?

Unauthorized absence from a military unit means unlawfully leaving the place of service or failing to report for duty within the prescribed period without valid reasons.

Liability is provided for under Article 407 of the Criminal Code of Ukraine. The legal qualification depends on the duration of absence, the status of the service member, and the circumstances of the case. During martial law, penalties are more severe, which means that prolonged absence is not merely a disciplinary matter.

Can You Return After AWOL in 2026?

Until September 20, 2026 inclusive, a special voluntary return procedure was in place for service members who had left military service without authorization. From September 21 onward, return is possible under the general procedure: the service member applies to the Military Law Enforcement Service, after which they are referred to a reserve battalion.

After arrival, the commander issues an order within three days to include the person in the list of temporarily assigned personnel and assigns the relevant duties. In addition, it is checked whether information has been entered into the Unified Register of Pre-Trial Investigations. The commander of the reserve battalion notifies the military unit from which the service member left about their arrival.

Can You Return to a Different Military Unit After AWOL?

The possibility of continuing service in another military unit depends on the specific circumstances, the applicable rules governing military service, and decisions of the command.

Under the simplified program that remained in effect until September 20, 2026, service members who met the established conditions could choose among designated units of the Armed Forces of Ukraine, the National Guard of Ukraine, and the State Special Transport Service.

After the end of this program, return is carried out under the general procedure. At the same time, when deciding on further military service, letters of recommendation from military units requiring additional personnel may be taken into account.

Does Returning to Service Exempt a Person from Criminal Liability?

Returning to military service does not in itself terminate criminal liability. At the same time, Part 5 of Article 401 of the Criminal Code of Ukraine provides for a special ground under which a person who, during martial law, committed for the first time an offense under Article 407 or 408 of the Criminal Code of Ukraine may be exempted from criminal liability.

This ground may be applied only if all statutory conditions are met simultaneously. Therefore, the applicability of this special exemption requires verification that all conditions established by law have been fulfilled.

What Conditions Must Be Met for Exemption from Criminal Liability?

Exemption under Part 5 of Article 401 of the Criminal Code of Ukraine is possible only if all of the following conditions are met:

• The offense was committed for the first time. The criminal offense provided for under Article 407 or Article 408 of the Criminal Code of Ukraine must have been committed by the person for the first time during martial law. The existence of several separate episodes may exclude the application of this ground. Whether the offense was committed for the first time is determined on the basis of the materials of the criminal proceedings and admissible evidence.
• Voluntary submission of a motion. The person must voluntarily apply to the investigator, prosecutor, or court with a motion stating their intention to return to the previous or another place of military service. Merely appearing at a military unit does not by itself satisfy this condition.
• Intention to continue military service. The person must intend to continue serving in the military.
• Written consent of the commander. The commander of the military unit must provide written consent for the person to continue military service.

The absence of even one of these conditions excludes the application of this special ground. Therefore, before returning after AWOL, it is advisable to assess not only the procedure for reporting back for service, but also the further documentary formalization of such return.

What Does the Supreme Court Say About Returning After AWOL?

The case law of the Supreme Court is of significant importance for the application of Part 5 of Article 401 of the Criminal Code of Ukraine.

When considering whether the special ground for exemption applies, courts establish whether all conditions prescribed by law are present, namely: the voluntary return of the service member to the place of service, their intention to continue military service, the written consent of the commander of the military unit, and the fact that the criminal offense was committed for the first time.

The existence of several separate episodes of unauthorized absence from a military unit may prevent the application of this special exemption. Each criminal proceeding is considered individually, taking into account the materials of the particular case.

Lawyer for AWOL Cases

If you have left your place of military service without authorization or criminal proceedings have been initiated against you, it is important to obtain legal assistance without delay.

A criminal defense lawyer from «Prikhodko & Partners» provides legal assistance in cases involving military criminal offenses, including legal support in AWOL-related matters. The lawyer may analyze the circumstances of the unauthorized absence, the service member’s procedural status, whether information has been entered into the Unified Register of Pre-Trial Investigations, military service documents, and the possibility of applying Article 401 of the Criminal Code of Ukraine. Depending on the circumstances of the case, the lawyer provides defense during the pre-trial investigation, participates in procedural actions, prepares the necessary motions, and represents your interests in court.

Calculation of Legal Fees

The cost of legal assistance is determined individually and depends on the circumstances of the unauthorized absence, the stage of the criminal proceedings, the procedural status of the service member, the volume of case materials, and the scope of legal work required.

After analyzing the situation, the lawyer can determine the required scope of legal assistance and calculate its cost.

Submit a request — the specialists of «Prikhodko & Partners» will analyze the circumstances of your situation and provide an estimated cost of legal assistance.

Double taxation of sole proprietors (FOPs) most often becomes relevant for Ukrainian entrepreneurs who live or spend extended periods abroad, receive income from foreign clients, maintain business relationships with another country, or may simultaneously be considered tax residents of that country. In such situations, the same income may potentially be subject to taxation in two countries. Resolving this issue depends on the individual's tax residency, the source and type of income, the tax legislation of the relevant countries, and the provisions of an international double taxation avoidance agreement. According to the State Tax Service of Ukraine (STS), Ukraine has bilateral double taxation avoidance agreements in force with dozens of countries.

When Does Double Taxation Arise?

The risk of double taxation may arise when a sole proprietor is registered in Ukraine but actually lives and works in another country; receives business or other income abroad; pays taxes on certain income in a foreign country while that income is also subject to declaration or taxation in Ukraine; or when two countries consider the same individual their tax resident.

The STS explains that foreign income may also be subject to taxation for individuals who are tax residents of Ukraine. The Tax Code provides for the inclusion of income received by resident individuals from sources outside Ukraine in their total annual taxable income, unless otherwise stipulated by the Tax Code of Ukraine or an applicable international agreement.

Therefore, simply being registered as a Ukrainian sole proprietor does not provide a universal answer to where taxes must be paid. Each entrepreneur's circumstances must be analyzed individually.

How Can Sole Proprietors Avoid Double Taxation?

First, it is necessary to determine the tax residency of the sole proprietor as an individual and verify whether a double taxation avoidance agreement exists between Ukraine and the relevant country.

Such agreements allocate taxing rights between countries for different categories of income and may provide mechanisms for eliminating double taxation. Depending on the specific convention and type of income, a tax exemption or a foreign tax credit may apply. Article 13 of the Tax Code of Ukraine also specifically addresses the elimination of double taxation.

However, it is essential for sole proprietors not to apply treaty provisions automatically. They must determine how the income is classified under the relevant international agreement and which country has the right to tax it.

Tax Residency of Ukrainian Sole Proprietors Living Abroad

One of the key considerations is not where the sole proprietorship is registered but the tax residency of the individual entrepreneur.

As explained by the STS, tax residency is determined by considering the person's place of residence, permanent home, center of vital interests, and, where applicable, the duration of their stay in Ukraine. The 183-day rule is important, but it is not the only criterion for determining tax residency.

For example, if a Ukrainian sole proprietor lives in Poland, Germany, Spain, or another country for more than 183 days, their tax residency should not be assessed solely based on the number of days spent abroad. It is necessary to examine the domestic legislation of both countries, the individual's center of vital interests, and the provisions of the relevant international tax treaty.

Do Ukrainian Sole Proprietors Have to Pay Taxes in Ukraine If They Live Abroad?

The answer depends on the specific circumstances. Registering as a sole proprietor in Ukraine, residing in another country, and having tax residency are related but distinct concepts.

It is necessary to establish where the individual is considered a tax resident, where the income originates, the nature of the business activities, where those activities are actually carried out, and which provisions of the applicable international agreement govern the relevant type of income.

Therefore, the common assumption that "I have been abroad for more than 183 days, so I do not have to pay any taxes in Ukraine" may lead to incorrect conclusions and tax risks.

Can Taxes Paid Abroad Be Credited Against Ukrainian Taxes?

Ukrainian legislation provides mechanisms for eliminating double taxation. However, the possibility of claiming a foreign tax credit must be assessed in relation to the specific income and taxpayer.

The STS explains that foreign income received by a Ukrainian tax resident is subject to declaration in Ukraine, while international agreements and provisions of the Tax Code may allow taxes paid abroad to be taken into account to eliminate double taxation. Proper documentary evidence is required to confirm the payment of foreign taxes.

At the same time, the rules governing foreign income received by individuals cannot automatically be applied to all income earned by Ukrainian sole proprietors. Business income requires additional consideration of the applicable taxation system and the classification of the relevant receipts.

International Double Taxation Avoidance Agreements

An international tax treaty is often the key legal instrument for resolving conflicts between the tax rules of two countries.

According to the latest information provided by the STS, Ukraine has 72 bilateral agreements (conventions and treaties) on the avoidance of double taxation in force. However, the status of each agreement must be verified for the specific country. For example, the STS notes that the agreement with the Russian Federation ceased to apply on January 1, 2023, while the agreement with Belarus ceased to apply on December 20, 2022.

An international agreement may determine which country has the primary right to tax certain income, whether the other country may also impose taxes on that income, and which mechanism should be used to eliminate double taxation.

Tax Residency Certificate for Ukrainian Sole Proprietors

Documentary confirmation of tax residency may be required to apply the provisions of international tax treaties.

A sole proprietor may apply for a certificate confirming Ukrainian tax residency status for the purposes of avoiding double taxation. According to the STS, the certificate form and the procedure for confirming tax residency were approved by Order № 248 of the Ministry of Finance of Ukraine dated August 19, 2022. The certificate is issued free of charge upon submission of the relevant application.

Depending on the circumstances, the certificate may be required to confirm Ukrainian tax residency to foreign tax authorities, banks, business partners, or other institutions.

Dual Tax Residency of Sole Proprietors

The most complex situations arise when two countries consider the same individual their tax resident under their respective domestic laws.

This does not mean that the entrepreneur must automatically pay the same tax twice. In such cases, it is necessary to move beyond domestic legislation and examine the relevant international tax treaty and its criteria for determining residency for treaty purposes.

These criteria may include a permanent home, center of vital interests, habitual abode, and other factors established by the particular agreement. Consequently, two seemingly similar situations involving Ukrainian sole proprietors in different countries may lead to different tax consequences.

What Risks Do Sole Proprietors Face If Their Tax Residency Is Determined Incorrectly?

Incorrectly determining tax residency or the applicable taxation rules may result in additional income reporting requirements, outstanding tax liabilities, and, in some cases, disputes with tax authorities.

Particular attention should be paid to situations where an entrepreneur has lived abroad for several years, continues operating as a Ukrainian sole proprietor, receives substantial payments from foreign clients, or has simultaneously registered business activities in another country.

How Can a Tax Lawyer Help Sole Proprietors Avoid Double Taxation?

A tax lawyer will analyze your individual circumstances, identify the risks of dual tax residency, examine the taxation rules applicable to sole proprietor income in Ukraine, and review the provisions of the relevant international tax treaty. Based on this analysis, it is possible to determine which country has taxing rights over particular income, whether double taxation relief mechanisms are available, what documents must be obtained, and how to substantiate your tax position. If necessary, the lawyer will assist in obtaining a tax residency certificate, preparing submissions to the State Tax Service of Ukraine, and representing your interests in disputes with tax authorities.

Submit a consultation request — we will analyze your country of residence, sole proprietor status, sources of income, and the applicable international tax treaty to determine a lawful approach to minimizing the risk of double taxation.