Legalization in Ukraine: Transparent, Compliant, and Flexible Cooperation with Entrepreneurs

As the global economy continues to evolve, more businesses are looking toward Ukraine as a reliable source of skilled talent, particularly in IT, digital marketing, creative services, and engineering. However, navigating the legal framework for working with Ukrainian professionals can be challenging—especially when it comes to ensuring full compliance with tax laws, employment regulations, and international cooperation standards. That’s where we come in.

Our mission is to simplify the process of legal cooperation between Ukrainian entrepreneurs and foreign clients while offering flexibility, security, and long-term value to all parties involved. Whether you’re a freelancer looking to legitimize your income, a growing company in need of a stable partnership model, or an international client seeking transparent collaboration, we’re here to help.

Understanding the Legal Landscape for Entrepreneurs in Ukraine

In Ukraine, individuals working independently can register as Private Entrepreneurs (FOPs). This status allows them to provide services legally, pay taxes in a simplified format, and build long-term relationships with both Ukrainian and international clients. The Ukrainian government classifies FOPs into four primary groups based on business type, revenue, and number of employees. Here’s a breakdown:

Group 1 

• Intended for: Small-scale retail or service businesses working exclusively with individual consumers (not companies)
• Annual revenue cap: $28,000 as of 2025)
• Employees allowed: None
• Tax structure: Fixed monthly unified tax (~10% of minimum wage) + unified social contribution (USC)
• Eligibility to work with foreigners: Not suitable for international contracts

Group 2 (ФОП 2-я группа)

• Intended for: Businesses providing services to individuals and other businesses (within Ukraine)
• Annual revenue cap: ($135,000)
• Employees allowed: Up to 10
• Tax structure: Fixed monthly tax (up to 20% of minimum wage) + USC (retirement tax)
• Eligibility to work with foreigners: Generally limited to Ukrainian clients

Group 3 

• Intended for: Service providers, freelancers, and small firms working with both individuals and legal entities, including foreign clients
• Annual revenue cap: ($195,000)
• Employees allowed: Unlimited
• Tax structure: 5% of income (or 3% + VAT) + USC (retirement tax)
• Eligibility to work with foreigners: Fully suitable for international contracts

Group 4 (ФОП 4-я группа)

• Intended for: Primarily agricultural producers
• Annual revenue cap: Based on land area, not revenue
• Employees allowed: No specific limit
• Tax structure: Varies, based on land
• Eligibility to work with foreigners: Not relevant for service-based businesses or international work

For the majority of international cooperation in digital and professional services, Group 3 (FOP 3) is the most common and optimal structure. It provides full legal transparency, allows foreign currency payments, and ensures compliance with both Ukrainian and international laws.

How We Work with Entrepreneurs and Businesses

We offer a variety of legal and administrative solutions to support effective and legal collaboration between Ukrainian professionals and foreign clients. Our services are built around trust, clarity, and the goal of creating long-term business relationships. There are two main contractual models we support:

Direct Contracts (B2B Agreements)

In this model, the foreign client signs a direct agreement with the Ukrainian FOP (usually Group 3). This is ideal for:

• Freelancers or contractors who want full autonomy
• Foreign clients comfortable managing independent contractors directly
• Projects where simplicity and cost-efficiency are key

We assist in drafting or reviewing B2B contracts to ensure compliance with both Ukrainian regulations and international standards. We also provide guidance on:

• Contract structure
• Invoicing
• Tax reporting requirements
• Currency control laws

Three-Party Agreements (Triangular Contracts)

In this setup, a three-party contract is established where our firm acts as a consultant or intermediary between the Ukrainian entrepreneur and the foreign client. This model provides:

Additional legal protection for both sides

Mediation and administrative support

Assistance with onboarding, performance tracking, and compliance

Triangular agreements are particularly useful for:

• Clients unfamiliar with Ukrainian legal procedures
• Teams or multiple freelancers working on the same project
• Businesses seeking a single point of accountability

Benefits of Legalization for Entrepreneurs

For Ukrainian professionals, legalization offers far more than just tax compliance. It unlocks a world of professional opportunities:

• Ability to sign legal contracts with global clients
• Access to international banking systems
• Proof of income for visa, loans, and mortgages
• Legal protection in case of disputes
• Eligibility for long-term cooperation with reputable brands

Additionally, being legally registered enhances credibility and professional reputation, which is increasingly important in competitive markets.

Benefits for International Clients

For companies hiring from Ukraine, working with legalized entrepreneurs ensures:

• Transparency in financial flows and deliverables
• Reduced legal and compliance risks
• Easier internal accounting and documentation
• Ability to establish long-term, recurring partnerships

We help our clients understand Ukrainian legal norms, adapt their contracts accordingly, and build lasting relationships with trusted professionals.

Our Approach to Long-Term Cooperation

We don’t believe in short-term solutions or transactional engagements. Our goal is to create robust frameworks for sustainable collaboration. That means:

• Understanding your business goals and team needs
• Helping Ukrainian professionals set up and maintain legal FOP status
• Drafting smart, scalable contracts for different project types
• Monitoring tax law changes and advising clients accordingly

Whether you’re managing a remote tech team, scaling a marketing agency, or exploring new talent markets, we serve as your guide, advisor, and bridge between two legal systems.

Additional Services We Offer

To ensure seamless cooperation, we also provide:

• Assistance in FOP registration (Group 3)
• Tax reporting and bookkeeping support
• Legal consultations for Ukrainian and international regulations
• Currency control and payment structuring support
• Communication between Ukrainian workers and foreign clients

Compliance, Security, and Trust

Every system we build is designed around mutual trust and accountability. Our legal frameworks ensure:

• Full compliance with Ukrainian tax and labor law
• Proper handling of cross-border payments
• Protection of intellectual property rights
• Clear mechanisms for contract enforcement and conflict resolution

We prioritize clarity in every step—so that all parties feel confident in their responsibilities, rights, and future collaboration.

Let’s Build Legal Bridges Together

Legalization in Ukraine isn’t just about paperwork—it’s about opening doors. Doors to international cooperation, career growth, and meaningful partnerships.

If you’re a Ukrainian entrepreneur ready to go global, or an international client looking for dependable talent, we’re here to help you do it right—legally, transparently, and confidently.

Let’s talk about your needs and how we can support a long-term, win-win cooperation model that works across borders.