State registration is a mandatory prerequisite for starting economic activity

Press service of the State Tax Service of Ukraine, published 27 April 2023 at 11:22 Chapter: News

State Tax Service of Ukraine reminds taxpayers and citizens of necessity of the economic entities’ registration in case of systematic economic activity of selling products (providing services). This is a mandatory prerequisite for starting economic activity.

Absence of state registration leads to bringing of relevant officials to administrative (Article 164 of the Code of Ukraine on Administrative Offenses) and, in certain cases, to criminal liability (Article 201 of the Criminal Code of Ukraine).

Many Ukrainian entrepreneurs neglect obligation to register their entrepreneurial activities. Such approach is completely unacceptable, as it violates requirements established by the law, namely:

- conduction of economic activity without state registration;

- use of labor of hired persons without proper registration of employment relations and absence of the minimum social guarantees;

- payment of salaries "in the envelopes";

- sale of products purchased without documents or imported without official customs clearance;

- failure to make calculations through the RRO/PRRO;

- settlements through bank cards of individuals;

- tax evasion, etc.

State registration of business entities is carried out and regulated by the Tax Code of Ukraine, Laws of Ukraine "On entrepreneurship" as of 07.02.1991 № 698-ХІІ (with amendments), "On state registration of legal entities, individuals-entrepreneurs and public organizations" as of 15.05.2003 № 755-IV (with amendments) and other legislative acts.

State Tax Service constantly receives information about facts of systematic economic activity without state registration. All cases are investigated and checked by tax authorities, and if information provided is confirmed, appropriate response measures are taken, including tax audits.