Starting a business in Ukraine
The FOP through Diia in a day, the single-tax groups that price most freelance work at 5%, and the wartime footnotes that belong on everything.
Checked against the sources on 2026-08-30
Before anything else
Ukraine made the solo start one of the world’s fastest: the FOP (ФОП - individual entrepreneur) registers free through the Diia portal or app, usually within a day, with the simplified single-tax election made in the same flow. Group 3 - the freelancer staple - pays 5% of turnover (or 3% plus VAT) up to a generous ceiling, plus the unified social contribution.
The permanent footnote since 2022: martial law adjusts rules repeatedly - contribution holidays came and went, thresholds moved with the minimum wage, and banking under wartime constraints has its own texture. The sequence below is stable; every number deserves a same-week check against official sources.
The legal shell
FOP or TOV?
FOP
Solo work of any digital kind - the overwhelming default.
Free; single tax 5% of turnover in group 3 plus the unified social contribution (~22% of minimum wage monthly).
Personal liability, and the single-tax groups have activity and turnover boundaries that matter when clients or revenue change.
TOV (ТОВ)
Partners, employees at scale, investors.
No minimum capital; registration free through Diia or a notary.
Ordinary profit tax (18%) unless the company itself elects simplified status; corporate banking and reporting overhead.
The sequence
Register via Diia
Where: diia.gov.ua, with a qualified e-signature (Diia.Signature works)Cost: ₴0Takes: Often within hours
Choose KVED activity codes generously and elect the single-tax group and, in group 3, the 5% no-VAT variant unless VAT is specifically wanted. Confirmation lands in the state register and the tax office follows automatically.
Open the FOP bank account
A dedicated entrepreneur account, at any bank - the fintechs onboard FOPs in a day. Foreign-currency earnings arrive through it with the bank handling conversion rules.
Pay the two recurring amounts
The single tax (quarterly in group 3) and the unified social contribution (ESV, monthly/quarterly on at least the minimum-wage base). Reporting is a simple declaration; most FOPs run it themselves from the bank’s own tools.
What it costs to start
| What | Amount |
|---|---|
| FOP registration | ₴0 |
| Single tax, group 3 | 5% of turnover |
| ESVMonthly base; wartime holidays have applied at times. | ~22% of minimum wage |
The words on the forms
- ФОП (FOP)
- The individual entrepreneur.
- Дія (Diia)
- The state portal and app where registration happens.
- Єдиний податок
- The single tax; group 3 is the freelancer standard.
- ЄСВ (ESV)
- The unified social contribution.
- КВЕД (KVED)
- The activity codes.
- ТОВ (TOV)
- The limited liability company.
The traps
- Working outside the registered KVED codes - single-tax status can be stripped retroactively.
- Group boundaries crossed by one good contract.
- Assuming last year’s wartime relief still applies.
- Foreign clients paying to a personal account instead of the FOP account.
Where to check this yourself
- DiiaRegistration and the business section.
- State Tax ServiceGroups, rates, ESV.
This is a map, not legal or tax advice - and an honest one about how it was drawn: the Germany guide was written by a person who walked the route; most other countries were drafted with AI against the official sources and have not yet been walked by someone who did it. Laws change. Every guide carries the date it was last checked and the sources to check it yourself - and if you have been through one of these routes, your corrections are exactly what this handbook wants.