Since 2019 you can register a company or private entrepreneurship online, as follows:
- decide about the company’s name and check the companies register (https://usr.minjust.gov.ua/en/freesearch) to ensure that such name is not used by another entity;
- choose taxation form;
- choose the applicable business activities from the CEA (the Classifier of Economic Activities);
- obtain electronic digital signature (EDS), which will identify you as the company founder
- follow the link https://online.minjust.gov.ua/login, sign in using the EDS and fill out the application for registration of a company or private entrepreneurship.
The registration procedure is not complicated and usually takes no more than a day.
It can be done online following the link https://usr.minjust.gov.ua/ua/paidextract.
You can receive the extract by making the inquiry to your tax inspection at the place of registration. Such inquiry is made in a free form, by mail or electronically through the “Tax Payer’s Electronic Office” ( https://cabinet.tax.gov.ua/).
You can obtain the EDS through any accredited key certification center (AKCC), or Privatbank. To register you will need the passport of citizen of Ukraine and the Tax ID. The procedure to obtain the EDS through Privatbank (if you are a client of this bank) is carried out online and takes less than thirty minutes.
IT Professional private entrepreneur in the third group of single tax pays 5% of income, provided that the amount of annual income does not exceed 5 million UAH and the common social contribution, which constitutes 22% of the minimal wage. In the case if the amount of annual income of private entrepreneur exceeds 5 million UAH, such private entrepreneur automatically receives the status of taxpayer on general basis. In such a case, he/she would be obliged to pay the income tax in the amount of 18%, the special defence contribution in the amount of 1.5% and the CSC (the Common Social Contribution) in the amount of 22% of the minimal wage.
This is a special account for operational activities of private entrepreneur.
The procedure is simple enough: choose a bank, choose a convenient branch and bring your passport and the Tax ID. Pay attention to the terms of accounts service, as they may vary greatly between different banks. Also, depending on the bank, the procedure of account opening can be carried out online.
The main CEAs business activities are:
- CEA 62.01 Computer programing;
- CEA 62.02 Consulting on the issues of informatization;
- CEA 62.09 Other activities in information technologies and computer systems;
- CEA 63.11 Data processing, information placement on web-nodes and relevant activities.
In Ukraine any source code (program) is protected as a literary work (such an interesting thing!). The code is protected by copyright from the moment of its creation, but should any dispute arises, the process of proving may be a difficult task, so it is better to register your copyright and to obtain the copyright registration certificate for a work in the State Intellectual Property Service.
To register your own TM, you need to submit the package of documents to the registering agency (Ukrpatent). This can be done through a patent attorney or independently. However, TM registration is usually a difficult, multi-stage process that requires expertise and experience. But why do it independently if there is the VigoLex team! Just write to us and we will do everything for you. Safely and fast.
In Ukraine, there are several types of relationships between the customer (employer) and the contractor (employee). Labour relations and civil law. The payment of taxes, as well as the origin of obligations between the parties depend on this. The subject of a civil-legal contract with an IT Professional (whether as an individual or private entrepreneur) is performing works or providing services, such as writing a specific program within a specified period at a certain price. As a result of the conclusion of this type of contract, the IT Professional does not become an employee of the company, should not subordinate to its working schedule, and should only strictly fulfill the terms specified in the contract.
Usually, the required document is a Public Offer Agreement, which, depending on a specific situation, will have either the form of a Services Providing Contract / Works Performance Contract for writing a program or a License Agreement. Such a contract is common for all customers when selling a product.
Private entrepreneur shall keep records of incomes, expenses and other indicators related to the determination of tax liabilities on the basis of primary documents. The primary documentation for a single tax private entrepreneur is the entry in the Book of Income Accounting, bank statement, receipts for services payment. Invoice and/or Acceptance-Transfer Certificate may also serve as primary documents.
There are many ways. The main thing is to connect a payment aggregator on the website to be able to accept payments by Visa and Mastercard, or directly to a banking card. (But if you REALLY want it, you can accept payment in cryptocurrency or by other ways. The VigoLex team can tell you how).
This can be done, but taken individuals’ incomes are subject to the tax in the amount of 18%, as well as 1.5% of the special defence contribution and the obligation to pay it will be put either on you or on your buyer, who may become your tax agent if the buyer is a legal entity.
The official currency of payments in Ukraine is the hryvna. When working with foreigners, you can also receive payment in foreign currency. However, the legislation of Ukraine does not prohibit receiving payments in the form of electronic money (for example, through Payoneer system). With regard to payment in Bitcoin (or other cryptocurrency), the legal status of such payments is still uncertain, as at the moment the National Bank of Ukraine has not waived the status of bitcoin as a “monetary surrogate”. However, it should be remembered that individuals and legal entities that are under the single taxation system cannot legally accept cryptocurrency payments because they are only allowed to provide cash/cashless services.
The agreement with aggregator should stipulate that payments to the PE’s account contain the correct indication of the payment destination, namely the specific wording for which services (according to CEA’s business activities), in what amount and from whom the funds were received.
General Data Protection Regulation is one of the EU’s regulatory acts that protects the collection and processing of EU residents’ personal data. It applies to all persons who process personal data of EU residents, so if you cooperate with individuals and legal entities registered or operating within the EU and process their personal data then you will be obliged to comply with the GDPR requirements.
Today, thanks to globalization, business has practically no boundaries, which makes it possible to start a business in any country of the world. However, choosing a jurisdiction for a company registration is not a simple matter and resolving it requires taking into account a number of factors, among which:
- ownership structure;
- specific business model requirements (e.g. target markets, labour and other resources, logistics);
- regulatory requirements (e.g. reporting);
- effectiveness of the existing infrastructure (e.g. banking, legal, accounting services);
- cost of servicing the company;
- taxation terms.
Regarding bank accounts, universal solutions do not actually exist and the choice of a bank depends on a specific business model and a number of other conditions.
An alternative to a bank account for companies engaged in international business are payment systems, and among them the most popular ones, such as Paysera, TransferWise, Epayments and others, can be distinguished.
The list of documents required to open an account depends on the bank or payment system and other conditions. In some cases, it is enough to provide only a copy of the company’s owner passport and its registration number, and in other cases it is necessary to provide a complete list of duly certified (notarized or apostilled) identification, constituent and financial documents.
Yes, but only in certain specific cases.
Firstly, banking requirements for opening and servicing accounts are constantly increasing, so it is very important to ensure the efficiency and timeliness of information exchange with the bank, as well as constantly monitor the relevant regulatory changes. For example, today most banks, when opening companies’ accounts, require such companies to have economic substance (physical office, management and employees, expenses, marketing, logistics, etc. at the place of the company’s registration).
Secondly, that due to changes in regulatory requirements and/or policies of a specific bank/payment system, an account may be closed at any time and without prior notice. Therefore, for business safety and steadiness, we recommend opening several accounts in various jurisdictions.
It is also very important that from the very beginning of a business and then on continuing basis, with further development planning, you always take into account the banks requirements in terms of risk and transparency of business activities.
Also note that in most countries of the world funds deposited in payment systems, unlike banks, are not secured by the deposit guarantee fund.
The number of reporting methods for SPs is almost unlimited but is most commonly used by:
- Personal application to the State tax service of Ukraine at the place of registration;
- Through the electronic cabinet of the State Fiscal Service of Ukraine (https://cabinet.tax.gov.ua/login);
- Use Opendatabot platform – @OpenDataUABot;
- Through other commercial applications that can report.
NDA- non-disclosure agreement. Designed to protect the parties from the misuse of their counterparties by the information obtained during the collaboration. The main risks are what the NDA usually says is that any information you receive from your client/partner is confidential and therefore there is a risk of accidental disclosure.
Theoretically – yes, practically – no. The jurisprudence does NOT have ANY successful case for the protection of rights under this agreement. This document is most commonly used in Ukraine as an element of intimidation than a real protection tool.
Yes. In most countries, this contract works effectively and has legal force. Therefore, we advise you not to violate its terms and conditions and thoroughly familiarize yourself with it when working with foreign customers.
NSA – non-solicitation agreement. It is usually used to prevent the enticement of specialists by clients/partners. In the absence of such a contract, there is a risk that the customer may “steal” your specialist to avoid overpaying you.
No, since it violates the right to free choice of employment.
In some countries, this is a very effective method (USA, UK, Canada). In other countries, such as the EU, this agreement is more likely to be used as a punishment for enticement a specialist. That is, you can entice a person, but the contract specifies the amount that your contractor must pay for “stealing” your developer.