Working without a sole proprietorship – what fine can you get in 2026

Main points

• In Ukraine, fines are provided for entrepreneurial activity without registering as an individual entrepreneur – from 17 to 85 thousand hryvnias.
• The tax office can track regular payments, in particular information about them is transmitted by financial companies and banks.

What threatens those who work without a sole proprietorship / Collage of Channel 24

Many Ukrainians start with small side jobs – selling goods online, baking desserts to order, or, for example, working as manicurists at home. However, if such work becomes regular and brings in income, the law requires the registration of an individual entrepreneur.

What is the penalty for doing business without registration?

Working “in the shadows” is risky, as it is subject to fines and tax sanctions. 24 Channel has looked into the details in more detail.

First of all, it is worth noting that liability for violation of the rules of conducting economic activity is provided for by Article 164 of the Code of Ukraine on Administrative Offenses, in particular:

• for working without state registration as a business entity;

• for the lack of a license or other permitting document, if required by law.

In such cases, they may be fined 1-2 thousand tax-free minimums, i.e. from 17 to 34 thousand hryvnias . In addition, there is a risk of confiscation of products, equipment, raw materials, or funds received as a result of such work.

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If a similar violation is recorded repeatedly during the year, or if large amounts of income are involved, the sanctions become tougher. The fine increases to 2,000 to 5,000 tax-free minimums, from 34,000 to 85,000 hryvnias , and confiscation of property is also provided.

Separately, Article 117 of the Tax Code of Ukraine defines liability for violation of the registration procedure, including for individuals who conduct business activities without proper registration – a fine of 340 hryvnias .

How can the state find out about the violation?

Experts note that the tax authorities are increasingly actively monitoring online sales of goods without registration as an individual entrepreneur. For example, after updating the formats of fiscal checks, financial companies through which payments are made are transferring information about the recipients of funds to control bodies.

According to accountant Mykhailo Smokovich, this now applies not only to the NovaPay service. The letters from the tax office already include Ukrposhta and the financial company EVO, through which payments from the Rozetka, Prom.ua, Bigl.ua, and Shafa.ua platforms are processed.

Mykhailo Smokovich

Tax consultant

This once again confirms the conclusion that selling goods online without a sole proprietorship is becoming very difficult. The tax office has received a serious tool to find out about unregistered entrepreneurial activity.

It is also becoming increasingly difficult to avoid inspections simply by making transfers “to the card”. Information about regular income can be transmitted to the tax office by financial monitoring of banks.

What taxes may be added? In Ukraine, the income of individuals is subject to taxation. The personal income tax rate is 18%, while the military levy rate is 5%.

How to register a sole proprietorship online?

You can now become an entrepreneur in a matter of minutes thanks to state online services. To register an individual entrepreneur, you need to log in to your citizen's account on the Diya portal.

1. In the list of services, select “Business Creation”, then “Automatic Registration of Individual Entrepreneurs” and “Submit an Application”.

2. Fill out the online form to receive the service:

   – provide your registration address and indicate your citizenship;
   – choose the types of economic activity and type of taxation ;
   – specify your contact details.

3. Certify the statement electronic signature individual.

Let us remind you that every month, individual entrepreneurs, in addition to the minimum amount of the Unified Social Security Tax (902.34 hryvnia as of 2026), also pay military duty and a single tax, the amounts of which depend on the tax group.