Registering as a sole proprietor in 2025 is a step towards official business and an opportunity to avoid the risks associated with unregistered activities. The government is tightening control over unofficial income by restricting P2P transfers and introducing automatic exchange of financial information (CRS) between countries. This means that banks can block suspicious transactions, and data on the income of Ukrainians abroad will be transferred to the tax authorities. Legalizing your business allows you to operate without restrictions, access banking services, participate in grant programs, and benefit from social guarantees.
You can easily close your sole proprietorship, switch to a gig contract, or open an LLC if necessary.
Which group of sole proprietorships should you choose in 2025?
In 2025, the choice of a sole proprietorship group depends on several factors: type of activity, planned income, and taxation system. If you plan to run a small business with minimal turnover, Group 1 is the best choice. If you work in the service or retail sector and have a higher turnover, you should choose Group 2. If you work with legal entities or plan to work as a sole proprietor in IT, Group 3 is the right choice. If your income exceeds UAH 8.7 million or you work with large companies, you should register as a sole proprietor under the general taxation system.
| Group | 1 | 2 | 3 | General taxation system |
| Suitable for |
entrepreneurs engaged in retail trade (for example, market vendors), providing services to the public |
small businesses – shops, cafes, services. For businesses that plan to work with individuals or other individual entrepreneurs |
entrepreneurs who plan to work with legal entities under any taxation system: IT specialists who receive foreign currency income and online businesses |
businesses with a large turnover or those who work with foreign clients |
| The limit |
UAH 1336,000 per year |
UAH 6672000 per year |
UAH 9336000 per year |
No income limit |
| Single tax |
302.80 UAH/month |
1600 UAH/month (20% of the minimum wage) |
5% of income (or 3% + VAT) |
18% personal income tax |
| Unified social contribution |
1760 UAH/month (minimum contribution) |
1760 UAH/month |
1760 UAH/month (minimum contribution) |
2% unified social contribution on net profit |
| Military tax |
1.5% of income |
800 UAH/month |
1% of income |
5% of income |
| Cash registers |
No cash registers are required |
is required for cash payments, card transactions via terminals, or sales of high-risk goods |
is required if you make cash payments, accept cards through a terminal, or sell risky goods. |
required for cash and card payments |
| Restricts |
Cannot conduct business with legal entities, only with individuals |
It is not possible to work with legal entities and individual entrepreneurs on the general system |
No restrictions on counterparties |
No restrictions on counterparties |
