Main points
- A fine of 340 hryvnias is provided for activities without registration as an individual entrepreneur, and for economic activities without registration – from 17 to 34 thousand hryvnias with confiscation.
- For repeated violations, the fine is from 34 to 85 thousand hryvnias with confiscation, and improper record keeping can lead to a fine of from 51 to 136 hryvnias.
What are the fines for illegal business / Photo by Pexels
For Ukrainians who regularly engage in entrepreneurial activities, it is important to run a sole proprietorship and pay taxes on time. You should also officially employ your employees and sell goods that have all the proper documents.
What fines are provided for sole proprietors?
Conducting business activities without registration or violating these rules may result in a fine, as stated on the website of the State Tax Service.
As of now, a fine of 340 hryvnia is provided for:
- for activities without registration as an individual entrepreneur;
- conducting independent professional activities without tax registration.
The fine for conducting economic activity without state registration as a business entity is from one thousand to two thousand non-taxable minimum incomes of citizens – from 17 thousand to 34 thousand hryvnias . Confiscation of manufactured products, production tools, raw materials and money received as a result of committing this administrative offense is also provided.
A fine for a repeated offense (within a year) in the amount of from 2 thousand to 5 thousand non-taxable minimum incomes of citizens – from 34 thousand to 85 thousand hryvnias with confiscation of manufactured products, production tools, raw materials and money received as a result of committing this administrative offense.
Receiving income in large amounts occurs when its amount exceeds the non-taxable minimum income of citizens by a thousand or more times (exceeds 17 thousand hryvnias),
– it says on the Tax Agency website.
Failure to keep records or improperly keep records of income and expenses for which the laws of Ukraine establish a mandatory form of accounting entails a warning or the imposition of a fine in the amount of three to eight non-taxable minimum incomes of citizens – from 51 hryvnia to 136 hryvnia .
Let us remind you! The Taxer website noted that economic activity means systematic, independent, initiative-based activity aimed at making a profit. Therefore, it is not necessary to become an entrepreneur if such activity is carried out once or twice a year.
What else should individual entrepreneurs in Ukraine know?
- The best days to open a sole proprietorship are considered to be the first days of the month. And this is regardless of the individual entrepreneur's group. Thus, there is time to check all the important nuances and not have to overpay taxes.
- At the same time, entrepreneurs must pay a monthly minimum insurance premium. In 2026, it is 1,902.34 hryvnia. This is the amount required to receive a month of insurance experience.