In Ukraine, conducting business activities without proper state registration can lead to serious financial sanctions and even property confiscation.
As reported by the Judicial and Legal Gazette, the Main Directorate of the State Tax Service in Kyiv region states that the procedure for conducting business activities and liability for violations are regulated by the Code of Ukraine on Administrative Offenses, particularly Article 164.
According to the legislation, conducting business without state registration as a business entity, without the required notification of starting activities, license, or permits entails a fine ranging from 1,000 to 2,000 non-taxable minimum incomes of citizens (approximately UAH 17,000 to 34,000). In addition, confiscation of products, equipment, raw materials, and funds obtained from illegal activities is possible.
In case of repeated violation within a year or if the activity generated significant income, liability increases. The fine can rise to 2,000–5,000 non-taxable minimums (UAH 34,000 to 85,000) with mandatory confiscation of property and illegally obtained profits.
The law also provides for liability for other violations in business activities. This includes submitting false information to obtain a license, untimely notification of changes in business entity data, as well as violations of fuel and ethyl alcohol circulation rules.
Tax service experts emphasize: ignoring legislative requirements can have serious material consequences, so entrepreneurs should timely register their activities in accordance with current norms.
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Photo: From open sources