Who qualifies as an independent contractor in Ukraine?

An independent contractor / freelancer is someone who is self-employed and offers expert services to clients on a contract basis. A freelancer does not receive certain benefits from a company and files taxes independently. He or she is in control of their work method and schedule, and can work with multiple clients.

Getting started as an independent contractor / freelancer in Ukraine

In Ukraine, the most common path to freelancing is sole proprietorship. A sole proprietor in Ukraine is called an individual entrepreneur or FOP. This business form is most preferred because:

  • It is the least complicated

  • There is no compulsory starting capital

  • The tax system is simplified with the quickest registration process

  • Clients are legally allowed to pay you in cash, unlike other forms of business

  • Unlike companies, it is possible to use the income for own needs and transfer funds from entrepreneur`s account to a private one, withdraw cash

The good news is that one can become a FOP from the age of 16. However, if you are not 18 years and above, you will need your parents’ or guardians’ consent. The journey to becoming a freelancer in Ukraine requires the following:

  • A copy of your Passport

  • Application form

  • Ukrainian tax number

  • Your parents’ or guardians’ notarial written consent (if you are not yet 18 years)

  • Ukrainian Address or Ukrainian mailing address (in case you are a foreign national an apartment lease is sufficient)

  • Code for business activity

With all the requirements in place, keep these points in mind for a successful registration:

Submit the application to the state registrar, either in person or by mail. You can also register online, for which an electronic digital signature is necessary.

You have the option to submit the application yourself or have someone do so on your behalf. For the latter, a notarized power of attorney needs to be issued.

If all goes according to plan, you will be registered by state registrar. Notaries in Ukraine fulfils this function as well. State registration services can be received via the centers of administrative services and entrepreneurship registration is free of charge. Notaries charge extra fee for this but in some cases it worth it as you get personalized service.

After registration, you can use Panther to generate Ukranian-compliant contract, invoices, and simplify payments.

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