Very often, entrepreneurs, when choosing a specific type of activity during registration, do not know that for the selected type of activity, a license, a cash register (RRO), or a patent may be required. Only after being checked by the tax authorities or the employment center (while paying significant fines), communicating with other entrepreneurs who have faced a similar issue, do they start seeking answers to their questions through consultations and clarifications.
Why does this happen? It's because the Classifier of Types of Economic Activity (KVED) or the Tax Code of Ukraine do not contain direct additional references, particularly regarding the need for licensing. Separate laws or subordinate acts (orders, resolutions, etc.) are in place for this purpose.
Let's take KVED 78.10 as an example.
According to the Classifier of Types of Economic Activity KVED 009:2010:
78.10 - activities of employment placement agencies.
This class includes:
- Personnel search, job selection, including appointment to positions and personnel search.
- Activities of Internet agencies for personnel selection.
As we can see, KVED 78.10 is applied specifically to employment placement. This is also indicated by the provisions of the Law of Ukraine "On Employment of the Population" No. 5067-VI dated July 5, 2012.
According to Article 36 of the mentioned law, services related to intermediation in employment include job search and assistance in employment, employee selection in accordance with employer orders (including foreign employers) within the framework of contracts (contracts) concluded with employers.
Please note that the above-mentioned law provides for quarterly reporting for entrepreneurs engaged in intermediary services in employment placement, including abroad:
- Report to the Employment Center (1-PA) - quarterly (no later than January 15, April 15, July 15, October 15).
The report form is established by the Order of the Ministry of Social Policy of Ukraine No. 851 dated June 3, 2019.
The fine for failure to provide or late submission of the report is equal to two minimum wages. For example, from January to August 2020, the fine amount is 9,446 UAH, and from September to December 2020, it is 10,000 UAH.
As for employment placement services outside Ukraine, the same law specifies that such activities require licensing.
In turn, the Law of Ukraine "On Licensing Types of Economic Activity" No. 222-VIII dated March 2, 2015 also provides that intermediary services in employment placement abroad are subject to licensing (Article 7).
You can familiarize yourself with the licensing conditions here.
In conclusion, for those engaged in activities in accordance with KVED 78.10:
- Providing quarterly reporting in the employment center is required.
- Licensing is required for providing intermediary services in employment placement abroad.
