Ukraine (UA)
EU-candidate country with a resilient tech sector, very low day-to-day costs by European standards, rich culture, and a 2026 expat experience shaped by martial law, air alerts, reconstruction, and fast-moving rules.
Capital: Kyiv
Region: Europe
Language: Ukrainian
Currency: UAH (UAH)
Cost of living: Very affordable (index 25)
Emergency: 112
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Business Setup
Start a business or go freelance in Ukraine.
🧑💻 Freelancer / Self-Employed Guide
Steps to register:
- 1 1. Obtain your RNOKPP (Реєстраційний номер облікової картки платника податків — Individual Tax Number) from the State Tax Service (tax.gov.ua). Foreign nationals apply in person at a Tax Service office with a passport and Ukraine address registration. Essential before any business registration.
- 2 2. Choose your FOP taxation group with an accountant's guidance: Group 2 (single tax ≈20% of minimum wage/month, approx. UAH 1,600/month in 2026; suits most service freelancers) or Group 3 (5% of all revenue, no VAT; or 3% + 20% VAT — suits IT exporters and B2B consultants needing VAT invoices).
- 3 3. Register as FOP at Diia (diia.gov.ua) online or at a CNAP (Centre for Administrative Services) — free, completed within 1–3 business days. Provide RNOKPP, passport, and activity KVED codes.
- 4 4. Open a FOP business bank account (рахунок ФОП) — mandatory and separate from your personal account. PrivatBank, Monobank Business, and PUMB offer accessible online opening.
- 5 5. Obtain a digital signature (КЕП — Qualified Electronic Signature) via Diia or your bank — required for filing all electronic tax declarations.
- 6 6. File and pay single tax (єдиний податок): Group 2 pays a fixed amount quarterly; Group 3 pays 5% (or 3%) of revenue quarterly. File via the Taxpayer's Cabinet (cabinet.tax.gov.ua).
- 7 7. Pay Unified Social Contribution (ЄСВ) at minimum wage × 22% per quarter (approx. UAH 1,760/month in 2026) — mandatory regardless of income level. Wartime relief measures may reduce or defer this — check current rules.
- 8 8. Declare and pay military levy (5% from January 2025) on distributions from the FOP account to your personal account — file in your quarterly/annual personal income tax declaration.
Tax registration
State Tax Service of Ukraine (tax.gov.ua). Register your FOP status and RNOKPP through Diia (diia.gov.ua) or at a CNAP. All tax filings submitted through the Taxpayer's Cabinet (cabinet.tax.gov.ua) using your КЕП digital signature. TOV registration via the Unified State Register (usr.minjust.gov.ua) then separately registered with the Tax Service.
VAT threshold
UAH 1,000,000 annual taxable revenue triggers mandatory VAT (ПДВ) registration at 20%. FOP Group 1 and 2 cannot register for VAT. FOP Group 3 can operate either as VAT payers (3% single tax + 20% VAT on invoices) or non-VAT payers (5% single tax). TOVs must register for VAT once annual revenue exceeds UAH 1,000,000.
Invoicing
FOP must issue an act of completed works/services (акт виконаних робіт/послуг) for each engagement, countersigned by the client. Invoices (рахунки-фактури) must include: FOP full name, RNOKPP, IBAN, date, description of services, amount in UAH. Foreign currency proceeds from service exports must be credited to a Ukrainian bank account within the NBU-mandated settlement period. For TOVs registered for VAT: tax invoices (податкові накладні) must be registered in the Unified VAT Invoice Registry (ЄРПН) within 15 days of issue.
Social security
FOPs pay ЄСВ (Єдиний соціальний внесок — Unified Social Contribution) at a minimum of minimum wage × 22% per quarter, regardless of actual income (approx. UAH 5,280/quarter = UAH 1,760/month in 2026). No upper income cap for FOPs. During active military service or if activity is suspended, ЄСВ payment may be deferred — verify current martial law relief rules. For employed staff in TOVs: employer pays ЄСВ at 22% of gross wages (no employee share deducted from net pay).
💡 Ukraine's FOP (Individual Entrepreneur) system remains the most popular structure for IT professionals and service exporters. Since January 2025, the military levy applies at 5% (previously 1.5%) on all personal income. FOP Group 3 is widely used by IT professionals billing foreign clients — foreign currency income must be settled through a Ukrainian bank within NBU deadlines. Foreign nationals should verify residency status and bank KYC requirements before registering a FOP, as compliance is stricter since 2022. Consult a Ukrainian accountant (бухгалтер) or legal firm before choosing a tax regime.
🏢 Business Structures
FOP · Фізична Особа-Підприємець — Individual Entrepreneur
Sole trader / sole proprietor
None
Min. capital
1–3 business days via Diia (diia.gov.ua) online or CNAP administrative service centre
Setup time
Liability: Unlimited personal liability (personal assets not separated from business debts)
Setup cost: Free — no state registration fee; accountant support UAH 1,000–3,000/month recommended
Best for: Freelancers, IT contractors, consultants and small service businesses. Three groups: Group 2 (single tax 20% of minimum wage/month, approx. UAH 1,600; suits most service providers) and Group 3 (5% of revenue or 3% + VAT; suits higher earners and B2B exporters). Most popular business structure in Ukraine.
TOV · Товариство з обмеженою відповідальністю — Limited Liability Company
Limited Liability Company (LLC)
No statutory minimum since 2018 reform; capital should match business operations
Min. capital
3–10 business days for straightforward structures via the Unified State Register (usr.minjust.gov.ua)
Setup time
Liability: Limited to company assets; directors may face liability for compliance failures
Setup cost: UAH 5,000–25,000 in legal and accounting setup costs; registration itself is low-cost via Ministry of Justice
Best for: Hiring staff, multi-founder businesses, agency work, companies with local clients or reconstruction projects. Required for government contracts above certain thresholds. Corporate income tax: 18% on profits.
AT · Акціонерне Товариство — Joint-Stock Company (Private or Public)
Joint-Stock Company / Corporation
Private AT (ПрАТ): no statutory minimum; Public AT (ПуАТ): no minimum but regulated by NSSMC for share issuance
Min. capital
4–10 weeks (Ministry of Justice registration + NSSMC securities registration for share issuance)
Setup time
Liability: Limited to share capital; shareholders not personally liable for company debts
Setup cost: UAH 5,000–25,000 in registration, legal and share issuance costs; share prospectus and NSSMC registration required for ПуАТ
Best for: Larger businesses, companies planning share issuance or eventual IPO. Private AT (ПрАТ) is similar to TOV but with transferable shares. Public AT (ПуАТ) can offer shares to the general public and is regulated by the National Securities and Stock Market Commission (NSSMC). Rarely used by SMEs — TOV is almost always preferred.
Representative Office · Представництво іноземної юридичної особи
Branch / Representative Office of a Foreign Company
None — backed by parent company documentation
Min. capital
Several weeks to months (Ministry of Economy accreditation + Tax Service registration)
Setup time
Liability: Foreign parent company bears full liability for all representative office obligations
Setup cost: UAH 20,000–80,000 in legal and translation costs; Ministry of Economy accreditation required
Best for: Foreign companies exploring Ukraine, operating donor-funded or reconstruction projects, or providing technical assistance. Cannot conduct commercial activity beyond the permitted scope. Representative offices are tax-registered and must file reports even if dormant.
NGO / Charitable Foundation · Громадська організація / Благодійна організація
Non-profit Organisation / Charitable Foundation
None
Min. capital
2–5 weeks (Ministry of Justice registration)
Setup time
Liability: Entity-based liability with strict reporting and use-of-funds rules; officers may be liable for misuse
Setup cost: UAH 5,000–20,000 in legal, registration and charter preparation costs
Best for: Humanitarian, volunteer, civil-society, recovery and international-aid work. Charitable organisations have specific tax exemption status for grant funding. International NGOs must accredit via the Ministry of Justice.
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