Head of practice
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.
Registration of an Individual Entrepreneur
You want to work legally. Receive money to your account, issue invoices to counterparties and sleep peacefully. It would seem – you opened an individual entrepreneur business in 15 minutes in “Diia” and that is it. But a month later it turns out that the wrong KVED was chosen, the single tax of the 3rd group without VAT was forgotten, and filing reports looks like Chinese literacy.
At Prikhodko & Partners, we see entrepreneurs every day who come with the request: “Please fix what I did myself”. Therefore, opening an individual entrepreneur business is not filling out a form. It is choosing a taxation system, a strategy for the future and protection from fines. And we offer not just to register you, but to do it without mistakes, the first time.
Who actually needs legal assistance when registering an individual entrepreneur?
Most people think: “I will do it myself, it is simple”. And this is true – if you are opening an individual entrepreneur business for trading at the market and do not plan to scale. But in other cases, independent registration is like heart surgery based on a YouTube video. Here is a list of situations where amateurism does not work:
- You plan to work with large business or the state. One wrong KVED – and the tender is yours, but the money will not come.
- You have several types of activity at the same time. For example, IT outsourcing + rent + delivery. It is necessary to calculate which single tax groups are compatible.
- You want to legally minimize taxes. It seems that 5% is little. But if you did not take into account the annual income limit – the rate will be lost or you will have to pay VAT.
- You work with individual entrepreneurs on the general system or with foreigners. There are nuances here with acts, VAT invoices and currency control.
Without professional support, you risk receiving not an “entrepreneur’s passport”, but a “letter of happiness” from the tax authority with a fine of UAH 17,000 for late registration or incorrect status.
What exactly is included in the service “Assistance in opening an individual entrepreneur business” from Prikhodko & Partners
We do not just press the “submit application” button. We calculate your business model three steps ahead. Here are three lists that describe the full scope of work:
List No. 1: Consultation and configuration selection
| Your initial data | What we offer | How this will affect the individual entrepreneur |
|---|---|---|
| You plan income up to UAH 1 million/year | We recommend the 3rd single tax group (5%) | Reporting once a quarter, minimum paperwork |
| You provide services to business abroad | We check the possibility of 4% (without VAT) or 5% with VAT – depending on contracts | Savings of up to UAH 50,000 per year on taxes |
| You have mixed income (cash + non-cash + foreign currency) | We select a backup system (for example, 3rd group + general) + assistance with opening a currency account | Legal possibility to work with all types of clients |
List No. 2: Preparation of documents without mistakes
Most registration refusals are due to technical mistakes in the application. We take care of:
- Checking passport data and RNOKPP for validity (yes, there are discrepancies in databases).
- Forming KVEDs not “by eye”, but according to directory 009:2020. For example, KVED 62.01 is not suitable for software development if you also teach – we add 85.59.
- Filling in application form 2 (or through “Diia”, but with our support if you want it quickly).
- Preparing an application for choosing the simplified taxation system – without it, you will automatically be placed on the general system with VAT and 18% tax + military levy.
List No. 3: Support after registration
It would seem – the individual entrepreneur is opened. But this is where problems begin. We do not leave the client:
- We send a step-by-step checklist: what to do in the first week (notify the bank, order an electronic digital signature, register with the Pension Fund).
- We prepare samples of primary documents (agreement, act, invoice, consignment note) according to your KVED.
- We warn about reporting deadlines — so that you do not miss filing the declaration in the very first quarter.
- We provide full legal and accounting support.
What risks do you avoid by contacting professionals?
Spoiler: there are more of them than it seems.
- Refusal of registration due to an incorrectly specified address or invalid signature. Resubmission means time and nerves. And if the business loses a contract because of the delay? With us, there is no refusal.
- Automatic placement on the general taxation system. You chose the 3rd group, but forgot to submit an application for the simplified system during registration. Congratulations: 18% tax + 20% VAT from the very first act.
- Inability to work with single tax clients. If your KVED provides for production, but you registered trade – the acceptance-transfer act will not pass. The client will refuse to pay.
Comparison table: opening an individual entrepreneur business independently vs with Prikhodko & Partners
So that it is clear why you pay money to a lawyer instead of saving it:
| Criterion | Independently | With our help |
|---|---|---|
| Probability of an error in KVED | High (75% of new individual entrepreneurs have at least one extra or missing code) | Zero – we check according to the directory and your business plan |
| Tax strategy | “I will take 5%, and then we will see” | Calculation of three scenarios (minimum, medium, maximum income) |
| Support after registration | None – you swim on your own | Checklist, preparation of documents, reminders about reports |
| Risk of a fine in the first 3 months | Very high (late notification of an account, failure to submit an application for single tax) | Absent – we track all deadlines |
| Cost of mistake | From UAH 2,000 to 50,000 in fines + lost time | UAH 0 – there are no mistakes |
How we work: step by step
The process is simple, but refined to the smallest detail. No “call back tomorrow”. Here are 4 stages that every Prikhodko & Partners client goes through:
- 15-minute analysis of your model.
- You tell us: what you do, how much you plan to earn, who your clients are (individuals, business, foreigners). We make a conclusion about the optimal group and tax rate.
- Selection of KVED and preparation of documents.
- We form a set of codes with a reserve (up to 5-7 types of activity), fill in form 2 application and the application for the simplified system. You only check and sign.
- Registration and obtaining an extract.
- We submit documents electronically (through a notary or with your electronic digital signature). We control deadlines – the extract from the Unified State Register is usually within 24 hours.
- Transfer of the case.
Why choose us (besides the fact that we are lawyers)
- We are responsible for the result. If because of our mistake you receive a refusal or a fine – we correct it at our own expense.
- We do not impose unnecessary things. No need to register an LLC? We will say it directly. Individual entrepreneur does not suit you? We will advise an alternative (self-employment, LLC).
- We work with currency control and foreigners. 70% of our clients receive money from abroad. We know how to prepare a contract so that the bank does not block the tranche.
- Speed. From the first call to the extract from the Unified State Register – on average 2-3 days. Emergency opening within 24 hours is also possible (separate tariff).
Complexity calculation: check yourself with 4 questions
Give an honest answer “yes” or “no”. If at least one is “yes” – registration without a lawyer is risky.
- Will you receive money from non-residents (companies or individual entrepreneurs from abroad)?
- Do you plan to work with VAT (even if not now)?
- Do you have an activity that requires a license (medicine, education, transportation, gambling business)?
- Have you registered an individual entrepreneur before, but closed it with debts or unfinished inspections?
The conclusion is simple: registration of an individual entrepreneur is not difficult if you know all the pitfalls. If not – you risk time, money and nerves. At Prikhodko & Partners, we make sure that you receive an extract from the Unified State Register and forget about tax problems for at least a year. No magic – just a systematic approach and experience.
Calculate the cost of services
1 question
Do you need help selecting the right NACE codes?
2 question
Do you need advice on choosing a tax regime?
3 question
Are you planning to work with foreign clients or companies?
4 question
Do you need to switch to a different single tax group or the general taxation system?
Can I open an individual entrepreneur business if I am officially employed under an employment contract?
Yes, you can. There are no restrictions. But please note: from the income of the individual entrepreneur, you pay the unified social contribution (USC) of at least UAH 1,562/month, even if your employer already pays USC at your main place of work. There is no need to hide this fact – the tax authority will see it anyway.
Do I need to personally go to the tax office or a notary?
No, if you have an electronic digital signature. We submit documents online. If you do not have one — you come to a notary once with your passport and tax code.
You may also need:
License for gaming machine halls
Read more
Obtaining a casino license in Ukraine
Read more
Introduction of corporate rights to the authorized capital
Read more
Obtaining a license for an educational institution
Read more
Mediation of corporate disputes
Read more
Increase in the authorized capital of the enterprise
Read more
LLC Liquidation in Ukraine
Read more
Closing and Terminating an LLC in Europe
Read more
Obtaining a license for passenger transportation
Read more
Liquidation of problematic assets in Ukraine
Read more
Legal Opinion Letter
Read more
Internet poker license
Read morecall back
during the day
Telegram
Viber
WhatsApp
Facebook
Instagram