Very often, people decide to become entrepreneurs without fully understanding the steps required. I often hear questions like, "Where do I start?" "What do I do next?" "What taxes do I need to pay?" Perhaps every IT recruiter has encountered such questions at some point. Therefore, in this article, I decided to outline the basic steps to start entrepreneurial activities.
Step 1. Choosing types of entrepreneurial activities
In my opinion, this is one of the most important steps, especially if you are opting for a simplified system of taxation, accounting, and reporting. So, select suitable types of activities in accordance with the Classifier of Types of Economic Activity (KVED) 009:2010.
Choose as many types (KVEDs) as necessary for your entrepreneurial activities. Please note that the number of KVEDs for entrepreneurs is not limited.
Step 2. Registering as an individual entrepreneur
Once you've decided on the types of entrepreneurial activities, you can proceed directly to registering as an entrepreneur. Entrepreneurial registration can be done in two ways:
- In person directly with the state registrar.
- Online through the "DIYA: State Services Online" portal.
To register online, you need to obtain/generate an electronic digital signature key (for example, through the "Privat24" application or by obtaining it from the State Registration Service in your region).
Important: If you choose to be a single tax payer, I recommend submitting an application for the simplified system of taxation, accounting, and reporting immediately during registration.
Step 3. Check the registration in the relevant registers
Usually, information about your registration as an entrepreneur can be checked on the website of the Ministry of Justice of Ukraine the following day. Within two to three days, you can check information about your registration as a taxpayer, the unified social contribution (ESV), and the single tax payer in the registers on the website of the State Tax Service of Ukraine:
- "Data on Taxpayer Registration"
- "Insurance Register"
- "Register of Single Tax Payers"
Step 4. Opening a bank account for conducting entrepreneurial activities
You can open a business account in a bank after the information about your state registration as an entrepreneur appears on the website of the Ministry of Justice of Ukraine.
Step 5. Requesting a "Certificate from the Register of Single Tax Payers"
If you are registered as a single tax payer, I recommend obtaining a "Certificate from the Register of Single Tax Payers" at the State Tax Service at your place of registration. Many business partners require it when entering into cooperation agreements.
You can request this certificate either directly from the State Tax Service or online. To submit an online request, use your taxpayer's cabinet on the website of the State Tax Service of Ukraine with the help of your electronic digital signature.
The form "Request for a Certificate from the Register of Single Tax Payers" is approved by the Ministry of Finance of Ukraine as of July 16, 2019 (No. 308). You can find it on the website of the State Tax Service of Ukraine.
Step 6. Registering the Income Book with the State Tax Service at your place of registration
Entrepreneurs registered before January 1, 2021, are required to maintain an Income Book, which must be registered with the State Tax Service at their place of registration.
Note: As an exception, during the quarantine period, you can register the Income Book with the State Tax Service within three months after the end of the quarantine. However, the Income Book must be filled out if income was received during this period.
Starting from January 1, 2021, the Income Book and its mandatory registration with the tax authorities have been abolished for entrepreneurs. This rule applies to entrepreneurs registered from January 1, 2021, onward.
By following all these steps related to registering as an individual entrepreneur, you will be ready to conduct your entrepreneurial activities.
P.S. If you have any questions, you can find more useful posts and information about our services for registering and managing individual entrepreneurs on our EvoTalents.Accounting page.
