How does a foreigner register as an individual entrepreneur (FOP) in Ukraine?

Can a foreigner be an FOP

Yes, a foreigner can register as a ФОП (individual entrepreneur, FOP), meaning a person who trades in their own name. The state registration law provides that a foreigner's legal capacity is checked against a document that establishes their identity and entitles them to stay in Ukraine. If you hold a посвідка (temporary or permanent residence permit), its number goes into the application instead of passport details. Other business forms are described in the guide to business for foreigners.

A residence permit is not a legal requirement for FOP registration. You can register without one, but such an FOP rarely pays off. Without a permit you will most likely not meet the tax residency tests and will not be able to stay on the simplified single tax, as explained below.

FOP status does not create a ground for a residence permit. In practice a foreigner first obtains a permit on some other ground, such as employment, marriage or permanent residence, and only then registers as an FOP.

Documents

You will need the following details and documents:

Before you fill in the application, check whether your street has been renamed and confirm the postcode. An outdated street name is the most frequent technical reason for an application to be returned. How to get a tax number is explained in the article on getting a tax number as a foreigner.

• your residence permit, if you have one, with its number and your record number in the Unified State Demographic Register;
• a Ukrainian tax number;
• the certificate of registered place of residence, or your address details;
• a list of business activities with the main one first.

How to apply

The FOP registration application is filed online through Дія (Diia, the state services app) or with a state registrar. To register online you need a biometric residence permit added to the app and a qualified electronic signature. The conditions for foreigners using Diia are covered in the article on Diia for foreigners.

After registration you receive an extract from the Unified State Register (ЄДР). An FOP who chooses the simplified system then files a separate application for the єдиний податок (simplified single tax) in the online taxpayer account.

Single tax and tax residency

This is the main trap for a foreigner. Paragraph 291.5 of the Tax Code does not allow non-resident individuals or legal entities to pay the single tax in groups one, two and three. A foreign FOP can therefore choose the single tax in groups one, two or three only as a Ukrainian tax resident.

Whether a foreigner is a tax resident is decided under subparagraph 14.1.213 of the Tax Code, looking in particular at the place of permanent residence, the centre of vital interests and whether you spent 183 days or more in Ukraine during the tax year. The same subparagraph names registration as a self-employed person, that is as an entrepreneur, as a sufficient ground for residency. So registering as an FOP in itself makes you a tax resident under the Code.

Even so, an FOP without a residence permit will most likely not meet the residency tests and will not be able to stay on the single tax. Your residency status also affects other taxes, so check it with an accountant before you choose a tax system. Taxes for foreign entrepreneurs are covered in the article on taxes for foreigners.

Groups and restrictions

Each single tax group restricts the types of activity, the number of employees, the range of counterparties and income. The 2026 rates and annual income limits are as follows:

Bank account and stamp

Once registered, an FOP opens a current account for business activity. The bank asks for the register extract, the residence permit and the tax number, and it also runs its own client checks. How banks work with foreigners is explained in the article on a bank account for foreigners. A stamp is not mandatory for an FOP, although some business partners ask for one.

Reporting and contributions

What an entrepreneur pays and reports depends on the chosen system. On top of the tax and the military levy, an entrepreneur pays the single social contribution for themselves unless exempt. The minimum contribution in 2026 is UAH 1,902.34 a month. Payment dates and amounts depend on the group and change every year, so draw up a payment schedule with an accountant right after registration. A missed payment leads to fines and late-payment interest, and a tax debt shuts you out of the single tax.

FOP or LLC

An FOP is simpler to register and run, but the entrepreneur is liable for debts with everything they own. An LLC is more complex, while its participants' liability is limited to their contribution. For a foreigner there is one more point. A foreign director of an LLC needs a work permit, whereas an FOP works for themselves. The full comparison is in the article on LLC, FOP or representative office.

Lawyer's experience

The question I hear most from foreigners is whether they can register as an FOP to obtain a residence permit. The answer is no, because FOP status is not a ground for a permit in itself. You can register an FOP without a permit, but it rarely pays off, so I advise getting the permit first and the FOP afterwards.

My second piece of advice concerns the single tax. Foreigners often register under the simplified system without checking their tax residency. Later the tax authority may question their right to pay the single tax. I recommend working out your residency with an accountant before you register.

If you do not have a tax number yet, we arrange a tax number for foreigners as the first step towards your FOP.

Frequently asked questions