Published 24 January 2017. Some rules have changed since; ask us for the current position.
An interview with Rostyslav Kulish, managing partner of Key Solutions.
Key points from the interview.
1. Take a look at group 1 of the simplified tax system for sole proprietors (ФОП). It includes activities suited to entrepreneurs in retail trade, and the tax rate is lower.
2. For people who are just starting out in business and are unsure whether they will have any income, the advice is this: if you see no point in paying the unified social contribution (ЄСВ), set up a limited liability company (ТОВ). It can be set up by an individual, whether resident or non-resident.
If the company's founder is also its director, the law allows no salary to be accrued while the company has no turnover. This falls under corporate law. Even so, the company should not be registered and then forgotten. I advise filing reports and minuting the meeting at which the decision not to accrue a salary was made. An LLC can also be an employer.
3. A professional can use a simplified form: self-employed status.
4. Civil-law contracts are a very good tool. They are concluded for a fixed term, and their subject is a defined result, such as a translation. The contractor does not have to be in the office; if they do work in the office, it is better to state this in the contract. The client is responsible for paying the taxes.
Watch the full interview (in Ukrainian):
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