Ukrainians may be allowed to do business without registering as sole proprietors

Ukrainians may be allowed to work without registering as sole proprietors - Rada returns to consideration of draft law

The Verkhovna Rada resumed consideration of a draft law that may allow Ukrainians to conduct certain types of business without registration of an individual entrepreneur (IE). This was reported by the Ukrainian media.

The initiative offers a new model of family economic activity with a limited income and the simplest possible tax accounting.

Key business conditions

The draft law stipulates that it will be possible to work without registering as a sole proprietor under the following conditions:

• annual revenue of up to UAH 8 million;

• The work involves Only household members;

• submitted a single annual tax return indicating actual income.

What services are allowed

The list of permitted activities is proposed to include:

• retail trade in markets and from stalls;

• cosmetology and hairdressing services;

• tutoring, legal advice, and tutoring services;

• care for sick people and domestic workers;

• cooking and other services in the restaurant industry;

• repair of appliances, furniture, clothing and footwear;

• transportation of passengers and cargo;

• cleaning, washing and ironing.

Cost accounting and social support

The document proposes to allow household expenses to include not only direct business costs, but also funds for the maintenance of each family member - in the amount of 60% of the average monthly salary for the previous year.

The concept of «social transfer» - state financial assistance.
To receive such support, the family must submit annual declaration of real income. At the same time, this rule will not apply to pensions and scholarships.

Context.

The idea of simplifying small business has been discussed in Ukraine for several years.
Supporters of the initiative believe that it will help legalise small family businesses and reduce the shadow economy, while critics warn of possible tax abuses and unequal competition conditions with existing individual entrepreneurs.

The final decision on the draft law will be made by the Parliament after further consideration and voting.