Guide · Localized for Ukraine

    How to Start a Business in Ukraine

    A step-by-step guide to legally starting a business in Ukraine: FOP vs. TOV, Diia registration, the simplified single tax, banking, wartime licensing, and support programs for founders.

    The Ukraine context

    Ukraine has one of the fastest digital business-registration systems in Europe. Sole proprietors (FOP) can register in under 24 hours through the Diia portal, and the simplified single-tax regime keeps compliance light for most small firms. Despite the ongoing full-scale war, the government has kept the registry, tax office, and banking system running, and it has expanded grant programs like eRobota and USAID/EU4Business to help founders launch and relocate. This guide focuses on peacetime rules with wartime notes where they differ.

    Currency is quoted in Ukrainian hryvnia (UAH). If you have limited savings, pair this page with the Ukraine-specific no-money playbook.

    Choose the right legal entity

    Entity typeBest forMinimum capitalTax treatment
    FOP (Fizychna Osoba-Pidpryyemets, sole proprietor)Freelancers, IT contractors, small services and retailNoneSingle tax Group 2 (fixed monthly) or Group 3 (5% of revenue)
    TOV (Tovarystvo z Obmezhenoyu Vidpovidalnistyu, LLC)SMEs with employees, foreign-owned businesses1 UAH statutory (set your own)General 18% corporate tax + 20% VAT, or Group 3 single tax at 5%
    Diia.City residentIT and digital product companiesCompany must already exist9% distributed profit tax, 5% PIT on staff salaries, gig-contract framework
    Representative officeForeign parent testing the marketSet by parentTaxed on Ukraine-source income under general rules

    Registration steps

    1. Get an electronic signature (KEP) - free via Privat24, Diia.Signature, or a Qualified Trust Service Provider.
    2. Open the Diia app or portal and choose 'Register a FOP' or use a notary for a TOV.
    3. Select your KVED activity codes (be generous - you can only work under codes on file).
    4. Choose your tax regime: single tax Group 2, Group 3, or the general 18% + VAT system.
    5. Submit; the entry into the Unified State Register is normally the same day for FOPs, 1-3 days for TOVs.
    6. Get an extract from the Unified State Register (a PDF download from Diia is legally sufficient).
    7. Order an official company seal only if you want one - it is optional under current law.

    Tax registration and filing

    1. Register with the State Tax Service (STS) - Diia does this automatically for FOPs.
    2. Choose single tax Group 3 (5% turnover, no VAT, up to ~8.2M UAH/year) for most starting service businesses.
    3. File quarterly single-tax returns and pay Unified Social Contribution (~1,760 UAH/month at the 2025 minimum wage) monthly.
    4. If you register for VAT, file monthly VAT returns and issue electronic tax invoices through the e-VAT system.
    5. Keep primary documents (contracts, acts of work performed, invoices) for at least 3 years - the STS audits FOPs on document trail more than on turnover.

    Banking and payments

    1. Open a FOP or TOV account with PrivatBank, monobank (for FOP), Oschadbank, Raiffeisen Bank, or ProCredit.
    2. monobank and PrivatBank offer end-to-end online onboarding for FOPs, often within an hour.
    3. Accept card payments through LiqPay, Fondy, WayForPay, or Portmone - all support Ukrainian and international cards.
    4. For USD/EUR revenue, most banks now allow same-day sale of foreign currency; National Bank of Ukraine controls still apply.
    5. For international clients, add Wise Business (via Ukraine partner banks) or Payoneer to receive USD/EUR quickly.

    Licensing and sector permits

    • IT services, marketing, design, and most professional services need no additional license.
    • Food, alcohol, tobacco, medicines, and financial services require sector licenses from the relevant ministry or the NBU.
    • Transport, security, and construction need permits from the State Regulatory Service and profile ministries.
    • Wartime notes: some export controls apply to dual-use goods; check the Ministry of Economy list before shipping.

    Hiring your first employees

    • Employment contracts must be filed with the STS on the first day of work - fines for undeclared hires are heavy.
    • Minimum monthly wage is 8,000 UAH (2025); Unified Social Contribution is 22% of gross salary paid by the employer.
    • Personal income tax is 18% and military levy 1.5% on employee salaries, withheld by the employer.
    • IT companies typically hire contractors via B2B agreements with FOP Group 3 (5% tax) or through Diia.City gig contracts.
    • Martial law rules restrict military-age men from leaving the country; plan for domestic-only travel for some staff.

    Sector opportunities in Ukraine

    • IT services and product companies - Ukraine has one of Europe's largest developer talent pools.
    • Defense-tech and dual-use hardware, supported by BRAVE1 and government cluster programs.
    • AgriTech and food processing given the size of the agricultural sector.
    • Reconstruction: construction materials, energy resilience (solar, batteries, small CHP), and logistics.
    • E-commerce and cross-border services to EU customers under the DCFTA and Association Agreement.

    Government agencies and portals

    Support organizations and networks

    Interactive Starter Checklist

    Launch a Business in 8 Weeks: Interactive Starter Checklist

    Work through these six stages in order. Tick items off as you go, your progress saves in your browser. Prefer paper? Download the printable PDF and take it into the field.

    Download printable PDFPreview in new tab

    0 of 30 complete

    0%

    1. 1. Validate the idea (Week 1)

      0 of 5 done

      Before spending money, prove someone will pay. Interview at least 10 potential customers.

    2. 2. Choose a legal structure (Week 2)

      0 of 5 done

      The right structure depends on liability, taxes, and who you plan to raise from.

    3. 3. Build the minimum viable offer (Weeks 3-4)

      0 of 5 done

      Ship a version customers can actually buy. Not a prototype, a real service or product.

    4. 4. Set up basic operations (Weeks 5-6)

      0 of 5 done

      Boring plumbing that prevents customer churn and tax headaches later.

    5. 5. Get your first 10 customers (Weeks 7-8)

      0 of 5 done

      Distribution beats product at this stage. Do things that don't scale.

    6. 6. Plan the next 90 days

      0 of 5 done

      Move from launch mode to a repeatable operating rhythm.

    FAQ: starting a business in Ukraine

    Most solo founders and freelancers start as FOP Group 3 (5% single tax, minimal paperwork). Choose TOV when you have co-founders, plan to raise equity, hire staff formally, or need limited liability for larger contracts. You can convert your work into a TOV later without losing customer contracts.

    Yes. Ukrainian citizens abroad can register a FOP through Diia with a KEP electronic signature. Foreign founders can register a TOV remotely through a notarized power of attorney to a Ukrainian lawyer or corporate services provider. Diia.City residency also supports fully digital onboarding for eligible companies.

    Business activity has continued across most of the country. The government has kept the registry, tax office, and banking running, and has added grants like eRobota. Risks are concentrated near active front lines and in critical infrastructure. Insurance is limited; the ERA war-risk insurance program and multilateral facilities (MIGA, DFC) cover some larger investments.

    Diia.City is a special regime for tech companies offering a 9% distributed profit tax (instead of 18% corporate tax), 5% personal income tax on staff, and legally recognized gig contracts. It is worth it if you have salaried developers or plan to distribute profits regularly. Solo FOPs on Group 3 typically stay on the single tax.

    Open a foreign-currency account with your Ukrainian bank; PrivatBank, monobank, and Raiffeisen support easy USD/EUR receipt for FOPs. Wise Business (via partner banks) and Payoneer are common for freelancers with EU or US clients. NBU currency controls require the foreign currency to be converted to UAH within a set window in most cases - check the current rules before pricing.

    Related resources

    Keep learning

    Related guides

    Deepen your context with these companion guides on how entrepreneurial ecosystems actually work.

    Donate