Main points
- Registration of an individual entrepreneur is possible online through Diya or through the Central Tax Administration, but you must choose a KVED and a form of taxation.
- The choice of tax group depends on the number of employees, the annual income limit, and your clients.
How to choose a group of individual entrepreneurs in 2026 / Collage of Channel 24
A sole proprietorship remains one of the easiest ways to officially work for yourself in Ukraine. This format is often chosen by freelancers, small business owners, service professionals, and those just starting their own business.
How to register a sole proprietorship online?
Today, you can become an individual entrepreneur in a matter of minutes, including online through government services. However, how to choose the right tax group for yourself and not get confused in the main nuances – explains 24 Channel .
To register an individual entrepreneur, you can contact the Central Registration Center or complete everything online yourself. The service in Action is available to adult citizens of Ukraine who have full civil legal capacity and legal capacity, as well as a certificate of registration for the registration of individuals.
- Log in to your citizen's account. In the list of services, select “Creating a business”, then “Automatic registration of an individual entrepreneur” and “Submit an application.”
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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. - Certify the statement electronic signature individual.
How to choose the right FOP group for yourself?
Registration through Diia is quite simple and completely free, but many people make mistakes when choosing a tax group. Therefore, future entrepreneurs often seek advice from accountants and lawyers.
However, there are only a few main criteria – the availability and number of employees, the annual income limit, and your clients.
Group I requires the absence of employees, suitable for retail trade and economic activities providing household services:
- annual income – up to 167 minimum wages (1,444,049 hryvnia as of 2026);
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single tax – 10% of the subsistence minimum for able-bodied persons (332.80 hryvnia);
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Military duty – 10% of the minimum wage (864.70 hryvnia).
Group II also suitable for trade and provision of services, but clients can be not only citizens, but also other individual entrepreneurs and legal entities.
- annual income – up to 834 minimum wages (7,211,598 hryvnias in 2026);
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single tax – 20% of the minimum wage (1,729.40 hryvnia);
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Military duty – 10% of the minimum wage (864.70 hryvnia).
Group III is the most universal and allows working with foreign clients; such an individual entrepreneur can hire an unlimited number of employees.
- annual income – up to 1,167 minimum wages (10,091,049 hryvnias as of 2026);
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single tax – 5% of income (in case of work without VAT) or 3% of income (for VAT payers);
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Military tax – 1% of the actually received income.
Group IV is a special regime for legal entities or individuals engaged in agriculture, cannot provide services and must work within the framework of the law on farming.
Useful! If you are still unsure about your choice, you can take a test on the Diya portal to help you decide on a group.
What else is worth knowing about taxes?
As a reminder, within the framework of the system of mandatory state social insurance, individual entrepreneurs regularly pay the social security contribution, the minimum amount of which increased in 2026 – it is 1,902.34 hryvnias per month. (i.e. 22% of the minimum wage).
It is worth noting that for one month a year, individual entrepreneurs of groups I and II may legally not pay the single tax and military levy. Tax consultant Mykhailo Smokovich clarified the conditions for obtaining such “tax holidays”: the absence of employees, as well as income (during the specified period). By the way, after submitting a special application, the expert advises to monitor the withdrawal of contributions.