Registration of a Sole Proprietor for Foreigners in Ukraine: Client Case from Belgium

Imagine this: you’ve just received a long-awaited offer from a client. The contract is B2B, and work starts on Monday. Everything seems perfect, except for one issue: you're a foreigner in Ukraine without a residence permit. You can't open a business account or register as an entrepreneur because you don't have a company set up. The client is waiting, bureaucracy is closing in, and you want to work transparently, with no risks, no grey areas.

This was exactly the situation one of our clients, a Belgian IT specialist, found himself in. He assessed the challenges realistically and reached out to us with a request: to quickly register as a sole proprietor, choose the most suitable tax system, and ensure proper legal support.

What Was the Client’s Challenge?

This was a fairly typical case with a few important nuances. A foreign IT specialist had received a B2B offer from a client, and there was no time to waste as the contract was ready to be signed. The only requirement: he needed to be registered as a sole proprietor in Ukraine.

That’s where the issue came in. He couldn’t open a Ukrainian bank account due to delays in the compliance process. But without a business account, how could he operate legally? We proposed an alternative: the client would temporarily receive payments to his personal account in the U.S., while we handled the sole proprietorship registration so he could sign the contract and have a proper legal framework in place. Once the Ukrainian bank account was finally opened, we submitted a revised tax declaration reflecting the actual income for the previous periods—ensuring everything remained fully legal and transparent.

What needed to be done:

• Quickly register the sole proprietorship 
• Set up mail forwarding and correspondence control for a year
• Choose a tax system that would minimize the financial burden while the sole proprietorship remained “inactive”
• Ensure the ability to easily switch to a different tax regime in the future, once a bank account is opened

In essence, the request sounded like this: "I need to sign the contract as soon as tomorrow. Please help me handle everything properly from a legal standpoint, but in a way that keeps the tax burden as low as possible while I’m still without a residence permit."

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Our Solution for Registering a Foreign Sole Proprietorship

The first step was securing a legal address. We helped the client rent a space, allowing him to register his sole proprietorship without delays. We also took on the responsibility of handling official correspondence: all government letters are sent to this address, and we promptly forward them to the client. This eliminates hassle and ensures that no important documents are missed.

Next, we addressed the tax system. Since the sole proprietorship would remain inactive for now, we recommended registering under the third group of the simplified tax system—an option well-suited for the IT sector and offering flexibility. At this stage, tax reports are submitted quarterly. The only mandatory payment is the unified social contribution (USC), which ensures the client maintains their insurance record. Later, once the bank account is opened and the business becomes active, the tax system can be easily adjusted to fit the new setup.

With all the groundwork in place, we moved on to the most critical step: registering the sole proprietorship. We fully prepared the required documents and handled the entire process on the client’s behalf. There was no need for him to get involved in complex registration procedures or spend time managing formalities. All that was needed was a single power of attorney issued to our lawyer — and that was enough. From there, we took over: we visited the notary and completed the registration without the client’s physical presence. In short, we navigated the entire bureaucratic process for him.

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Result: A Ready Sole Proprietorship and a Safe Business Launch

Within just a few days, the client received a fully registered sole proprietorship along with a complete set of documents, a legal address, and a well-structured tax reporting process. This allowed him to sign the contract on time and move forward with the project without delays.

In effect, we solved several key challenges:

• The client obtained official registration of the sole proprietorship without having to visit notaries or government offices himself.
• A legal address was secured, with correspondence handling arranged for a full year.
• The tax setup was optimized to minimize costs while the business remained inactive.
• A solid legal foundation was established for future transparent operations—with flexibility to scale and adapt the tax system as needed.

As a result, the client saved time, avoided bureaucratic hurdles, received a fully legal, turnkey solution, and could sign contracts without worrying about legal or tax risks.

How We Help Foreigners Open a Sole Proprietorship in Ukraine

If you find yourself in a similar situation, we know how to make the process simple and secure.

Here’s what we can do for you:

• Register a sole proprietorship, including remotely. We’ll prepare all the necessary documents and complete the registration through a notary via power of attorney, with no need for you to be physically present.
• Provide a legal address and manage official correspondence. All government letters will be sent to us, and we’ll promptly forward them to you.
• Select the optimal tax system, minimizing tax obligations for an “inactive” sole proprietorship while ensuring flexibility to adapt once your business becomes active.
• Build a fully compliant legal foundation. You’ll receive a registered sole proprietorship that meets all legal requirements and is ready for transparent collaboration with clients.

Everything is handled quickly, without long lines or unnecessary bureaucracy. Your involvement is minimal, while the legal safety and compliance are fully ensured.

Submit your request today, and we will offer a solution tailored to your situation.