FOP Group 2 is a convenient option for entrepreneurs working with individuals or other FOPs and companies that are on the single tax system.
It is particularly suitable for those who run local businesses – for example, shops, coffee shops, beauty salons, workshops, private schools, or courses. It can also be beneficial for specialists working directly with Ukrainian clients.
At first glance, the system seems simplified, but there are important nuances: restrictions on the types of activity, an annual income limit, specific registration requirements, cash handling rules, and staff employment conditions. Ignoring these details at the start can result in losing your right to the single tax or facing penalties.
At Finevolution, we help entrepreneurs start a business safely: we register FOPs, provide advice on choosing the right group, taxes, and KVEDs, and also support entrepreneurs with tax reporting.
More details on choosing your FOP group:
Who can be on Group 2 FOP in 2025
Group 2 is part of the simplified taxation system, which has its own clear requirements. To operate as a Group 2 FOP in 2025, an entrepreneur must meet the following criteria:
- Clients – only individuals or other FOPs and companies on the single tax. You cannot cooperate with legal entities on the general taxation system. This is the main restriction.
- Types of activity – services, trade, restaurant business. You can sell goods, provide services to individuals and other FOPs, and operate in the restaurant business (without selling alcohol).
- Annual income limit – up to UAH 6,672,000. This is the limit for 2025. Exceeding it leads to losing the right to the simplified system.
- Number of employees – up to 10 people. Unlike Group 1, Group 2 allows hiring employees, but the number must remain within the limits set by the Tax Code.
Important: If you work with legal entities or plan to enter foreign markets, Group 2 is likely not suitable. In this case, Group 3 is a better choice. We have already explained this in detail in our article Group 3 FOP: What You Need to Know in 2025.
Taxes for Group 2 FOP in 2025
Working under Group 2 is simple – there is a fixed monthly payment, regardless of how much you earn. This is the main advantage of this system.
|
Tax |
Rate |
When Paid |
|
Single tax |
UAH 1,600/month (as of 2025) |
Monthly, regardless of income |
|
Unified Social Contribution (USC) |
UAH 1,760/month (22% of the minimum wage) |
Quarterly, even if there was no income |
|
Military levy |
UAH 800/month |
Monthly, regardless of income |
Note:
- Rates may be adjusted by the local council. In some municipalities, the single tax rate is lower than UAH 1,600. We always verify this during registration.
- Unlike Group 3, Group 2 does not require paying a percentage of your income. This is convenient for entrepreneurs with stable revenue or those who want to plan their expenses clearly.
