Concepts and terms

Sole proprietor (FOP)

фізична особа-підприємець (ФОП) · also ФОП, FOP, Individual entrepreneur

Ukraine's individual-entrepreneur status: owners are liable with all personal property and most use simplified "single tax" groups. Many IT workers freelance this way.

An FOP is a natural person doing business independently, at their own risk and for profit. Registration with the state can be done online from age 18 (at 16–17 with parental consent). The owner is liable for debts with all personal property, including property unrelated to the business.

The simplified "single tax" has three groups: group 1 is for small businesses without employees and pays a fixed amount; group 2 serves individuals or other single-tax businesses; group 3 is for higher earners who may work with companies, taxed at 5% of income, or 3% plus VAT. According to the Ukrainian Wikipedia, IT was among the most popular sectors for new registrations in 2023.

On the DOU.ua forum, IT workers working remotely as "group 3 FOPs" often discuss taxes. On mobilization, ThePublic writes that an FOP seeking a reservation must prove monthly income above 61,000 hryvnias and pay 20,400 hryvnias in military levy.

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Last updated 2026-10-24 · Suggest a correction