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.

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How to register a Group 2 FOP

Registering this type of FOP may seem simple, but in practice, this is where mistakes often occur, leading to extra expenses or the need for re-registration. To avoid this, it is important to follow a clear step-by-step process:

Choose the correct KVED codes. Your activity must match the allowed types – retail trade, services for individuals, etc. If you specify “convenient” codes instead of those reflecting your actual activity, you may face higher taxation or lose the right to the simplified system.
Submit an application for FOP registration. This can be done via the Diia portal (online registration) or at a CNAP (Administrative Service Center).
Submit an application for the simplified taxation system. This must be done no later than the end of the month in which the FOP is registered. Starting from the 1st day of the following month, you can operate under the single tax. If you fail to apply on time, you automatically remain on the general taxation system – with 18% PIT + 5% military levy.
Open a bank account for the FOP. Using a personal account for business activity is a violation. A dedicated FOP bank account must be opened separately.

Common mistakes for Group 2 FOPs

Even with simplified bookkeeping, entrepreneurs often make mistakes that may result in fines or losing single-taxpayer status:

Working with legal entities on the general system. Group 2 does not allow providing services to companies on the general tax regime. Receiving payment for such services is a violation and may lead to additional taxes under the general system, exclusion from the simplified system.

Exceeding the annual income limit (UAH 6,672,000). If the entrepreneur exceeds the limit, a 15% tax is charged on the excess amount. Exclusion from the single tax system is also possible.

Violations with employees. The maximum number of employees is 10. Exceeding this number is a violation. Employees must also be officially registered, and all required taxes and contributions must be paid.

Failure to use fiscalization where required. In some cases, even Group 2 FOPs must use RRO/PRRO (cash registers) – for example, when selling electronics, jewelry, or if receiving cash or card payments via a terminal.

Incorrect determination of the activity start date. Entrepreneurs often think they can start operations immediately after submitting the FOP application. However, until you officially choose the simplified system, you remain on the general system – which means 18% PIT + 5% military levy.

Which FOP Group to choose?

It depends on your activity:

If you sell goods or work directly with individual clients – Group 2 may suit you.
If you provide services to businesses (legal entities or FOPs), receive foreign currency income, or work with foreign clients – Group 3 is better
If you work at local markets or provide basic household services with minimal income – Group 1 may be the right choice

Registering an FOP involves more than just filling out an application. It is about starting your business correctly, so that from day one everything works smoothly: your KVEDs match your real activity, your account is opened without issues, and your taxes are optimized.

At Finevolution, we handle the entire process – and not just registration. We make sure you won’t have to redo it a year later.

We help with everything:

Analyze your business model and recommend the most beneficial FOP group (considering client types, income level, and possible foreign payments)
Register FOPs turnkey – via Diia or with a notary, depending on your situation, without errors, repeat submissions, or wasted time
Select the correct KVEDs to avoid additional tax assessments or fines
Assist with opening a bank account and explain how to handle incoming payments
Set up an optimal tax scheme – with or without VAT, depending on your expenses
Provide bookkeeping and submit reports – so you never worry about tax deadlines, payments, or inspections
Explain currency control nuances if you plan to work with foreign clients

We are here not only at the start. If your business grows, needs a group change, employee hiring, or FOP closure – we handle that as well.

We work Monday to Friday, 9:00 to 19:00. For a consultation, submit a request using the form below, or contact us via Telegram, Viber, or WhatsApp.

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