A FOP (fizychna osoba-pidpryiemets) is a natural person registered to carry on business without forming a legal entity: the Ukrainian sole proprietor.
In plain words
A FOP is liable for obligations connected with the business with all of their property, except property that the law does not allow to be seized (Article 52 of the Civil Code). That is the main difference from a limited liability company, where participants risk mainly their contribution. A FOP is registered in the state register and then chooses a tax system: the general one or the simplified one (single tax). Taxes, reporting and restrictions depend on that choice. A FOP pays the unified social contribution for themselves, and for tax purposes belongs to self-employed persons.
Sources
- Civil Code of Ukraine No. 435-IV of 16 January 2003 — Art. 52 (version of 5 August 2026). Checked 14.10.2026.
- Tax Code of Ukraine No. 2755-VI of 2 December 2010 — Art. 14.1.226, Art. 63.5 (version of 17 September 2026). Checked 14.10.2026.
- Law of Ukraine “On State Registration of Legal Entities, Natural Persons – Entrepreneurs and Public Associations” No. 755-IV of 15 May 2003 — Art. 1 (item 4) (version of 24 April 2026). Checked 14.10.2026.
Example. A designer who works for themselves registers as a FOP, chooses a single tax group, receives payment to the FOP account and pays the single tax and the social contribution.