Ukraine plans to allow running a business without registering an individual entrepreneur as a legal entity.

Ukraine plans to allow running a business without registering an individual entrepreneur as a legal entity. The respective draft law No. 8143 “On Free Business (Economical) Activities of a Household” was registered by the Parliament on 20.10.2022.

What does it mean?

The draft laws’ authors propose creating legal and economical backgrounds for Ukrainian households to function and earn income. Draft law No. 8143 declares that households are individual and institutional.

Individual households are those comprising a single person who resides in a separate dwelling or an individual room (block of rooms) and is not united with any other persons at the same residence for common household activities.

Institutional households include people who constantly live in specialized social or medical institutions, social service and protection entities, military units, or those expected to live at the mentioned institutions within a long or undetermined period.

What are the conditions?

Authors of the project propose to allow households to run a business without registering an IE provided that:

•          the household submits its annual tax declaration;

•          only the members of the household are involved in running its business;

•          annual earnings of the household’s business do not exceed 8 million UAH.

Business activities allowed for running without registration of the IE are planned to cover:

•          services of hairdressers and cosmetologists;

•          legal advising;

•          home servants’ services;

•          individual lessons (repetitors);

•          cargo transportation services;

•          activities in the sphere of the restaurant business, etc.

The complete list of the types of business activities involved and other details of the Draft law №8143 are available at https://itd.rada.gov.ua/billInfo/Bills/pubFile/1509554