Ukrainian contractors, administered properly, without a company here
Most companies treat the ФОП as the contractor’s own problem
It is an understandable assumption. They are an independent business, so their registration, their tax filings and their bank are their responsibility. Many arrangements run for years on exactly that basis without anybody looking.
The difficulty is that the consequences do not stay with the contractor. Your own tax authority may want evidence of their status before accepting the cost as deductible. Your finance team may find a payment rejected because their bank asked a question nobody answered. And in some jurisdictions the arrangement itself gets re-examined, at which point the question is not whether they were registered but what the relationship actually looked like.
Long-standing ФОП in poor standing
Registrations under the wrong activity codes, the wrong tax group for the work being done, unfiled returns, accrued penalties and missing documentation. Usually discovered when somebody finally needs the paperwork.
Clean it up before the contract, not after
We check the standing of every existing ФОП before you commit to anything, and resolve what is outstanding. You start from a known position rather than an assumed one.
Registration, handled end to end
The right KVED for the actual work
Registered activity has to cover what you are paying for. The wrong codes are the most common defect we find, and it is the one that undermines invoices retrospectively.
Simplified taxation, chosen deliberately
Group 3 at 5% of turnover suits most consulting and IT work; group 2 carries a flat monthly charge and tighter restrictions on who you may invoice. The choice has consequences and should not be made by default.
Filing and the state extracts
Documents prepared and filed, the extract from the Unified State Register obtained, and single-tax payer status confirmed in writing rather than assumed.
A notarised power of attorney
So we can act for the ФОП on filings and administration. Without it, every routine matter waits for the contractor to find time for it.
A dedicated business account
Opened for the ФОП’s business activity and kept separate from personal money, which is the first thing anyone examining the arrangement looks at.
Before you sign anything
For contractors who are already registered, a full review of the position: filings, liabilities, penalties and documentation, with what we found in writing.
What happens every month
Expenses reviewed and validated
Office rent, travel, equipment and anything else recharged through the ФОП, checked for whether it belongs there and whether it is documented well enough to survive being questioned.
What has to be invoiced so the net arrives
Working backwards from the amount agreed with your contractor to the invoice figure, after single tax, the social contribution and bank charges. Get this wrong and either they are short or you are overpaying.
Issued in English and Ukrainian
Your finance team gets a document they can process and file. The Ukrainian side gets one that satisfies local requirements. Same invoice, both audiences.
Kept current, not filed and forgotten
Service agreements and annexes updated as the work changes, because a contract describing work nobody does any more is worse than no contract at all.
The ФОП’s own obligations
Single tax and social contribution paid on time, returns filed, and the turnover ceiling for the chosen group monitored so nobody discovers it after crossing it.
Financial monitoring, answered early
Ukrainian banks query cross-border payments to ФОП accounts as a matter of routine. We answer those queries when they arrive. An unanswered one becomes a frozen account, and a frozen account means your contractor is not paid.
The exposure sits with you, not only with them
The cost stops being deductible
Several jurisdictions require evidence of a foreign contractor’s legal and tax standing before allowing the expense. If the ФОП cannot produce current documentation, the deduction can be challenged in your accounts, not theirs.
A frozen account, mid-month
Financial monitoring queries are routine and answerable. Ignored, they stop the account. Your contractor does not get paid, and reopening it takes considerably longer than answering the question would have.
A contractor who looks like staff
Some tax authorities will examine whether the arrangement is really independent contracting. That question is decided on how the relationship works day to day, and the answer can carry employment tax consequences in your own jurisdiction as well as in Ukraine. Worth taking to your own advisers rather than assuming.
When you do not need this
One or two straightforward contractors
If you work with a couple of well-established ФОП who file their own returns and have never had a bank query, a self-service platform will administer that more cheaply than we will. We have lost clients to exactly that and it was the right outcome for them.
Several contractors, or one that matters
Where the number is enough that something is always outstanding, where recharged costs run through the arrangement, where your auditor asks about deductibility, or where a single contractor is critical enough that a frozen account becomes your problem within days.
Questions about ФОП arrangements
Do we need a Ukrainian company for this?
No. That is the point of the arrangement. Your contractor is an independent Ukrainian business invoicing you directly, and you contract with them from wherever you are.
If you later reach the stage of employing people here rather than contracting with them, that is a different structure with different obligations, and we run that too. But nothing about this service requires you to incorporate first.
What does it cost to run a ФОП?
On simplified taxation, a group 3 ФОП pays 5% of turnover as single tax, plus a monthly social contribution set at 22% of the minimum wage, which is UAH 8,647 in 2026. There is also a turnover ceiling for the group, which we monitor.
Our administration fee sits on top of that and is per ФОП per month. What it is depends on how many you have and what state they are in when we take them over.
Can you control who else our contractor works for?
No, and you should be wary of anyone offering to. A private entrepreneur is by definition an independent business entitled to other clients, and restricting that is precisely the kind of control that makes an arrangement look like employment rather than contracting.
What we can do is make sure the arrangement is documented, the standing is clean and the commercial terms are clear. Exclusivity, where you need it, is a matter for the contract and for your lawyer.
We inherited some ФОП arrangements. Where do we start?
With a standing check. We look at each registration: activity codes, tax group, filings, outstanding liabilities, penalties and documentation, and give you the position in writing before you decide anything.
It is common to find something. It is much better to find it deliberately than to find it because a bank, an auditor or a tax authority found it first.
Send us the ФОП you already work with
We check the standing of each one, activity codes, tax group, filings and outstanding liabilities, and tell you in writing what we found. No charge, and no obligation to appoint us afterwards.
Ukrainian 
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