Change of the Classification of Economic Activities for Sole proprietorship in 2021

Any sole proprietor may, in the course of its business activity, face the need to make changes to the existing types of economic activity, indicated at its registration. Whether it is due to the expansion of services, or the decision to simply change the vector of business -  you will need to enter certain data in the registration documents.

Such changes may also be necessary in the following cases: 

  • When a sole proprietor switches to the simplified taxation system; 
  • When a sole proprietor switches from one group of single taxpayers to another,
  • At the request of the counterparty to confirm a certain type of economic activity.

Today we’ll talk about how to make such changes quickly and easily.

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The procedure of changing types of economic activity for sole proprietorship

The procedure of changing types of economic activity has no limitations as to the frequency or number of registration actions. Moreover, there is no need to pay any fees when changing types of economic activity.

The change of types of economic activity is allowed both for sole proprietors using the general and simplified taxation systems. 

If you operate under the general taxation system and want to change the types of economic activity, you will need to determine the new types of activity using the Classifier of Types of Economic Activity, and then apply to the state registrar with the application of Form 11. The form shall specify: 

  • Your full name and registration number of the sole proprietor’s taxpayer card;
  • Codes of the new types of economic activity to be included in the Unified State Register;
  • Codes of the old types of economic activity to be excluded from the Unified State Register;

In case you have changed the main type of economic activity, you will be given an updated extract from the Unified State Register.

If you are a sole proprietor operating under the simplified taxation system, after submitting an application to the registrar, you will need to submit an additional application with the marked new types of economic activity to the supervisory authority, i.e. the tax office, at the place of registration of sole proprietorship in the prescribed time: 

  • For Groups 1 and 2 of single taxpayers - no later than the 20th of the month that comes immediately after the month of the changes.
  • for Groups 3 and 4 of single taxpayers - together with the tax return for the reporting period during which such changes were made.

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Which types of economic activity should a sole proprietor choose?

Not all types of economic activity are suitable and can be used by all sole proprietors operating under the simplified taxation system. In some cases, you may need not just to expand your types of economic activity, but to switch to an organizational form such as LLC.

Thus, for example, a sole proprietor who operates under the Group 2 of the single tax is not entitled to engage in activities related to production, supply and sale of jewelry, while an LLC has enough authority to do so. 

If you do not know whether the new, chosen type of economic activity is suitable for your form of business, don’t hesitate to contact us. We can help you with the start of business in a complex manner: organize the accounting process, register everything on the first try, help with agreements, etc. 

Our goal is to help you solve all legal issues simply.

We are ready to help you!

Contact us by mail [email protected], by phone number +38 044 499 47 99or by filling out the form:

Publication date: 05/06/2020

We are ready to help you!

Contact us by mail [email protected], by phone number +38 044 499 47 99or by filling out the form: