How Can A Foreigner Start An Online Business in Ukraine?
In autumn 2020, a draft law was registered in Ukraine, which introduces and fixes the concept of e-Residency for foreigners in Ukraine.
Read about what it is and whether it will enable all persons living outside of Ukraine to develop their business inside the country in the article.
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What is e-Residency and what does the law say?
An e-Resident is a non-resident person (foreigner) who has obtained the status of e-Resident and registered in Ukraine as an individual entrepreneur.
Who can be interested in this?
First of all, this may interest entrepreneurs who want to develop business in Ukraine, but do not intend to move to Ukraine in the near future. Registration of a foreigner as an individual entrepreneur does not entitle you to a residence permit in Ukraine, and this used to mean some inconvenience in doing business.
Now the registration of the sole proprietorship in Ukraine will give the opportunity to run business online.
Foreign e-Residents may already use the established registration procedure and even a group of taxation to run online business in Ukraine - 5% of income.
Moreover, since the initiative is just about to be introduced, soft and comfortable conditions are established for the first foreign e-Residents to start their business in Ukraine.
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What kind of business can be conducted online in Ukraine within e-Residency?
According to the draft law, e-Residents can only engage in clearly defined types of business in Ukraine, such as:
production of computer games;
production of other software;
other activities in the field of information technology and computer systems;
data processing, web hosting and related activities, etc.
This option of organizing online business in Ukraine is perfect for IT-specialists from other countries.
Foreigners are also offered the following rules of running an online business in Ukraine:
E-Residents will not be able to use hired labor;
All the accounting records of the E-residents will be maintained through the e-cabinet;
E-Resident will only be able to conduct business activities established by law, otherwise they will lose the status of an e-Resident in Ukraine.
However, it should be taken into account that all income, which will not be confirmed by primary documents, will be taxed at the rate of 15%.
Please note! Our firm offers not only legal, but also accounting services, which means that you can easily avoid this situation.
As already mentioned, if according to the primary documents or formal signs it turns out that the entrepreneur renders other services than those that are provided and allowed within its type of business activity, the entrepreneur loses the e-Residency status - we will help you avoid such a situation.
If you are interested in such a business opportunity, don’t hesitate to call us. Today, the law has not yet been passed, but our lawyers can already offer you to start preparing for business registration online. We will get a handle on your goals and the situation in order to offer the best solution.
If you want to run your online business in Ukraine today, without waiting for the introduction of tax residency, we can offer you the following services:
Registration of business in Ukraine in the form of a company or sole proprietorship;
Legal advice on the organization of accounting and other business accounting;
Keeping accounting and other business records instead of you within customized legal support of your business in Ukraine;
Assistance in organization of online business in Ukraine by developing a public offer, personal data processing schemes, consent to the processing of personal data, etc.
Do you want to start your own business in Ukraine right now? Don’t hesitate to contact us! We will find the best option for you, whether you want to move to Ukraine and get a residence permit, buy a company or do business in Ukraine.
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