Business Registration: First Steps

Despite shelling, power outages, complex logistics, and other challenges, our people continue to implement their business ideas and start their own businesses throughout 2022.

Every day, about a thousand new sole proprietors and dozens of new companies appear in Ukraine. Ukrainian businesses continue to operate. They support the economy.

With the New Year approaching, many would-be entrepreneurs are planning to start their own businesses. Thanks to technology, this can be done online.

In this article we will talk about how to start registering your own business, and we will tell you about gifts fromFacebook,Telegram,Twitter orInstagramso you don't miss useful information!

Business registration was suspended for only a month 

To start a business, whether it's a sole proprietorship or a family firm, a medium-sized company or a large one, the business must be registered with government authorities.

On February 24, the Ministry of Digital Transformation of Ukraine temporarily suspended the operation of the Unified State Register (USR). This was done to protect data.

However, the government services service “Diya” quicklyrestoredAccess to business registration. Since March 28, portal users have once again been able to submit online applications for sole proprietorship registration.

According to the head of the Ministry of Digital Development, 114,000 Ukrainians have created their own businesses since the start of the full-scale war, registering as sole proprietors through Diya. In total, more than 140,000 new entrepreneurs have emerged in our country in 2022.

Where to start registering a business?

First, you need to choose the organizational and legal format for conducting business activities:

1. individual entrepreneur (IE);
2. legal entity. 

A sole proprietor (SP) is an individual who independently engages in entrepreneurial activity for profit. This type of business is typically chosen by those providing services to individuals or other businesses. The planned income of such an entrepreneur cannot exceed 5 million UAH per year.

Registering a legal entity means creating an LLC (Limited Liability Company), an organization with one or more founders.

The LLC format is primarily chosen by entrepreneurs who aim to actively attract investment and collaborate with large companies, and who plan to operate not only in the domestic but also in the international market.

How to register a business?

Once you've decided on your business structure, you need to register it. This can be done in two ways:

1. Online. Independently, on the "Diya" portal, without directly contacting the state registrar. A qualified electronic signature (QES) is used for registration.
2. Offline. By contacting authorized entities that conduct state registration under martial law. The current list of institutions is available atwebsite of the Ministry of Justice of Ukraine. 

Documents for business registration

Registering as a sole proprietor is a simple procedure. You can register your business activity online or at an authorized government agency.

To register a sole proprietorship, a minimum package of documents is required:

1. Passport of a citizen of Ukraine or other document certifying the identity of the applicant.
2. Application for state registration of sole proprietorship (a sample is posted onon the Ministry of Justice website).

The application must include the economic activity code (KVED). This means selecting the type of activity you plan to engage in to generate income from your business from the classifier. KVEDs are structured by economic sector.

Please note that sole proprietors can only carry out business activities within the limits of the selected and registered KVEDs (this is especially relevant for single taxpayers).

It's important to be extremely careful when making your choice. Consider in advance what operations will be performed during your business. Register the required KVED codes to avoid changes to your registration data.

The KVED (Classification of Economic Activity) must reflect the nature of the business. For example, it would be a violation if the KVED (Classification of Economic Activity) is "retail sale of cosmetics," but the entrepreneur is engaged in providing advertising services.

The list of codes is available on the State Statistics Committee website. The portal "Дія”. 

To register a legal entity offline, the following list of documents must be provided:

1. Application for state registration of the establishment of a legal entity.
2. Decisions of the founders on the establishment of a legal entity.
3. Constituent document of a legal entity.
4. Information about the governing bodies of the public organization.
5. A document containing information on the amount of mandatory payments and other mandatory expenses.
6. Information on the ownership structure.

If the founder or ultimate owner of a legal entity is a foreigner, additional documents must be provided: identification, proof of registration in the country of residence, etc.

On the Diia portal, you can register an LLC online and choose a tax system: simplified or general (with VAT registration).

To register an LLC based on a model charter:

1. log in to the “Diya” portal;
2. fill out an application for LLC registration;
3. sign the application with a qualified electronic signature.

If the data is entered correctly and in full, the system automatically generates an application and immediately registers the LLC.

If the application fails to meet any of the requirements, LLC registration is completed within one business day with the participation of a state registrar, also online.

Qualified electronic signature

A qualified electronic signature (QES) is an advanced electronic signature that is created using a qualified electronic signature tool and is based on a qualified public key certificate.

When using an electronic signature, the state regulator guarantees that the electronic signature is provided using reliable means of information security.

An electronic signature has the same legal force as a handwritten signature. The use of an electronic signature is regulated by Ukrainian law, in particular, by Law No. 2155 "On Electronic Trust Services" of November 7, 2018.

Important! You must obtain a digital signature immediately, as it will be required for the online application to open a business.

An electronic signature can be used to sign contracts, agreements, certificates of completion, online agreements with contractors and partners, etc. That is, to conduct electronic document management, as well as interact with government agencies (in particular, to submit tax reports to the State Tax Service of Ukraine).

So, verify your identity in just a few clicks using a qualified electronic signature. Sign documents online and save time!

The legal force of digital identification and the use of new software for the use of electronic documents is enshrined in a number of regulatory acts.

Where can I get an electronic signature?

You can create a qualified electronic signature at any accredited key certification center. To obtain a qualified electronic signature, you must submit a completed registration form, provide your passport information, and the taxpayer identification number.

The list of qualified providers of electronic trust services is posted on the Diia portal.

You can quickly obtain a QEP online through the national service "Diya." It's easy. However, you'll need an ID card or biometric passport to use the app.

You can also quickly obtain a digital signature on your PC using the online account of your preferred bank. For example, PrivatBank clients can obtain a digital signature online for free through the Privat24 service.

Besides PrivatBank, you can also obtain an electronic signature from Oschadbank, UkrSibbank, and PUMB. Terms and conditions are posted on each bank's website.

Tools for profitable business operation

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Our company also tries to help your business develop and offers gifts for the New Year.

Anyone who orders or renews our services from December 21, 2022, to January 6, 2023, will be entered into a prize draw and will be eligible for discounts and bonuses.

Good luck and prosperity to your business in the new year!

Together until Victory!