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Attorney. Specialist in commercial and labor law. Over 16 years of experience in legal support of businesses - debt recovery, contract enforcement, recovery of damages, commercial property and lease disputes.
Agreement between FOP and LLC on provision of services
A Service Agreement is a fundamental document that regulates relationships between different business entities.
The legal basis for such an agreement is provided by Articles 901–907 of the Civil Code of Ukraine. The subject of this contract may include various types of services: legal, accounting, informational, marketing, etc. A service agreement between a sole proprietor (FOP) and a limited liability company (LLC) serves as a flexible collaboration tool that allows engaging professionals without the need to establish employment relations. In this article, we explore the key features of this type of civil contract.
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Key Advantages of a Service Agreement Between FOP and LLC
This is not just a formality — it’s a practical tool for effective cooperation. Signing such an agreement helps:
- clearly define the terms of interaction;
- prevent conflicts;
- ensure accountability in case of violations;
- simplify accounting procedures;
- protect against fraud;
- safeguard trade secrets (via a separate NDA).
This is especially relevant in the IT sector due to long-term cooperation and flexible arrangements.

Essential Terms of the FOP–LLC Service Agreement
To ensure legal validity, the agreement must include:
- written form with both parties’ signatures (or electronic version with a qualified e-signature);
- contract subject — clear description of the type, scope, and timeline of services;
- price and payment procedure — including VAT, currency, advance payments, and deadlines;
- term of validity — the period during which obligations are in force;
- liability — penalties, compensation for damages, and exceptions (e.g. force majeure).
⚠️ Important: The sole proprietor (FOP) must have the correct business activity code (KVED) matching the type of service. Otherwise, tax penalties may apply.
Service Delivery Act: Why Is It Needed?
This document is essential and should be prepared within the timeframe agreed upon by the parties. It:
- confirms that services were rendered and paid for;
- protects parties in the event of disputes;
- serves as a primary document for income/expense accounting.
Although there is no standard template, the act must include: date, names of the parties, description and volume of services, reference to the agreement, and the period of service delivery.
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Breach of the Service Agreement: Types of Liability
Under Articles 611 and 906 of the Civil Code of Ukraine, the following may be applied:
- compensation for losses (e.g. for disclosing trade secrets);
- unilateral contract termination;
- penalties and fines;
- moral damages (rarely applied).
“Prykhodko & Partners” recommend combining these measures to ensure full protection of your interests.
Contract Drafting Between FOP and LLC: Legal Services
Preparing a high-quality contract is a task best left to an experienced commercial lawyer. Using generic online templates may expose you to legal risks due to outdated or overly simplified clauses. Our firm offers:
- in-depth needs analysis;
- risk assessment;
- customized contract development;
- counterparty status check (if needed);
- additional protections (e.g. NDA);
- legal support during signing and negotiations.
Turning to legal experts is a smart investment in your business safety. With us, you’ll get not just a legally correct agreement, but a solid foundation for fruitful cooperation. To find out the cost of contract development — fill in the form below.
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Yes, of course, we take companies for permanent support.
The subscription form of service allows you to receive a full range of legal services on an ongoing basis for a fixed monthly fee.
Our lawyers will accompany all economic legal relations of your company: from drawing up contracts and solving corporate issues to representing interests during inspections by regulatory bodies and in court disputes.
We have very flexible pricing, so contact us and we will discuss your specific case.
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