Sole proprietorship for freelancers and IT professionals in Ukraine. How to register and choose a group.

The author of the article: Denis Korablyov

Modified date: 26 November 2025

More and more Ukrainians receive income from abroad through Payoneer, Wise, or other international services. At first glance it may seem safe and convenient – the money comes regularly, the state “does not notice”, and everything works. But in reality any unexplained transfer can raise questions from the bank or even lead to account blocking. That is why in 2025 legalizing income through registering as SLE is not just a bureaucratic requirement but a necessity for those who want to work calmly, make purchases, invest, and not fear financial monitoring.

Imagine: You are already receiving stable income through Payoneer or Wise from abroad and believe that the state “will not notice”. But one day a blocked account, refusal of a large purchase, or bank suspicion may happen. In this article, we will explain why income legalization in 2025 is not a formality, but a matter of your freedom and financial peace. You will learn:

• Why SPE is the key to safe payments and transparent income;
• What advantages SPE status gives to a freelancer or a hired specialist;
• How to choose the optimal SPE group and UACE code for IT and freelance;
• What you need to know about banks and international payment systems to legally receive income.

Why register an SPE for freelancers and IT specialists

It often seems that all this paperwork is a long process – registration, reporting, taxes – and it is easier to stay in the shadow and work quietly from a distance. But in reality, if you have stable income, it makes sense to make everything official – much more than it seems.

The main advantage is the ability to calmly purchase expensive items (an apartment, a house, even a phone) or invest. Because during such purchases, banks are obliged to ask: “Where did you get the money from?” If you are an SPE and show official income – no questions, deals go through easily and without extra checks.

Many freelancers already work as entrepreneurs, but there are still those who hesitate. One of the most popular fears:

“What if they check me and calculate taxes for all previous years before registration?”

This is not true. Your old personal accounts have nothing to do with your new SPE. Activity before registration is not considered “accumulated”.Also, if you work in IT or as a freelancer – registering an SPE gives you a number of significant advantages.

What advantages the SPE status provides

And if you plan to travel abroad or apply for a visa – you will almost always need a proof of income. For example, the USA may simply refuse a tourist visa if you have weak ties to your home country (lack of stable job, family) and insufficient funds for the trip. And this is where SPE helps, because everything is official, transparent, understandable: you pay taxes – and you have documented confirmation of your income.

Advantages of SPE registration for a hired employee

You can open an SPE not only to work “for yourself”. In the IT sphere, it has long been common practice when employees, instead of a standard employment contract, work with a company as service providers. This is beneficial for both sides — and here is why:

1. Tax savings

• When working under an employment contract, the employer withholds 18% PIT + 5% military tax from the employee’s salary, and additionally pays 22% UACE. In total — more than 40% expenses.
• Example: with a salary of 20 000 UAH → “in hand” the employee receives about 16 400 UAH, while the company spends almost 25 000 UAH.
• For SPE of group 3, taxes are simpler: 5% unified tax + 1% military levy and UACE (1760 UAH).

2. More freedom and flexibility

• For the employer: no need to follow complex dismissal procedures — it is enough to stop cooperation. This reduces risks and encourages quality work.
• For the specialist: they are not “tied” to one employer, can take orders from several companies, and can change projects quickly without unnecessary bureaucracy.
• This format encourages companies to build honest and partnership-based relations with contractors, since competition for specialists is high.

3. Start for business development.

• In groups 2 and 3, an SPE is officially allowed to hire employees. This means you can start as a solo contractor, then delegate part of the tasks to others and gradually grow into a real team.
• A flexible taxation system allows you to move between groups, and in the long term even register an LLC when the scale goes beyond the limits of an SPE.

Which system and group of SPE to choose for a freelancer?

The third group is the optimal option for IT and freelance.

• Taxes: 5% on income + 1% military levy (or 3% + VAT).
• You can legally receive money from abroad via any payment system.
• No client restrictions: you can work with Ukrainian and foreign companies.
  

Why not the second group?

At first glance, the second group looks cheaper:

• A fixed tax (not dependent on income).
• Lower operational expenses.
  

But there is a major downside:

• You can work only with individuals, SPE single tax payers and LLCs on simplified taxation in Ukraine.
• Foreign economic activity is prohibited.
  

This means neither Payoneer, nor PayPal, nor direct contracts with foreign clients work here at all.

In fact, if you plan to work with foreign customers, or even think about such a development – choose the third group immediately! Because then the transition will take time and may cost lost contracts.

Can an IT specialist choose the 1st or 4th group of SLE?

No!

The 1st group of SLE is about small retail trade in markets or household services for the population (for example, shoe repair or watch repair).

For a freelancer or an IT specialist this option is NOT suitable.

The 4th group of SLE was created for agricultural businesses.

How to choose UACE codes for a freelancer?

This is a critically important step because UACE specifies your activity as an entrepreneur and shows the tax office what you actually do.

The main rule is that you can list several UACE codes at once even if you do not plan to use them immediately. No one will punish you for adding as many as you want. But if you work under unregistered UACE codes there may be fines, so it is better to play it safe and add all suitable options.

For IT specialists and freelancers the most common choice is UACE codes from section J which is the “Information and telecommunications” category. The most popular ones:

• 62 – “Computer programming, consulting and related activities”
• 63 – “Information service activities”

So if you are a programmer, developer, tester, consultant, or work with databases feel free to add UACE codes from these sections.

You may also find these UACE codes useful:

• 62.01 – Computer programming (Main)
• 62.02 – Information technology consulting
• 62.03 – Management of computer equipment activities
• 62.09 – Other information technology and computer systems activities
• 63.11 – Data processing, web hosting and related activities
• 63.12 – Web portals
• 63.99 – Other information service activities
• 58.29 – Publishing of other software
• 58.21 – Publishing of computer games
• 74.10 – Specialized design activities
• 70.22 – Business and management consulting
• 73.11 – Advertising agencies

You can add a UACE code at any time through the Diia portal, and we have already explained how to do this in our video about UACE on the channel.

How to register as SLE?

A few years ago to register as SLE you had to go to the CNAP, look for a notary or special registration points, collect a bunch of papers, and stand in lines. Because of this many entrepreneurs simply postponed legalizing their business and did not rush to pay taxes. The most inconvenient part was that you could submit documents only at your place of registration and you had to run your activity and file reports there as well.

Now everything is much simpler. You can open SLE online in 5–10 minutes and it really saves time and nerves. You register at the place of your registration but you can work from anywhere in Ukraine and file reports through the electronic cabinet without visiting your “home city”.

A step-by-step video on how to quickly and without unnecessary bureaucracy open SLE online can be found here.

In which bank should an IT specialist open an SLE account?

Choosing a bank for SLE is primarily a question of your convenience. First check how online banking works, how much service costs, and what services are available for SLE. Our team of accountants and lawyers believes that the most convenient banks for IT and freelancers remain PrivatBank and Monobank.

International payment systems

Most IT freelancers work with foreign clients, and payment almost always comes in foreign currency through Payoneer, PayPal, Wise, Revolut and others. From Upwork and other platforms the money usually arrives on Payoneer – and this is absolutely legal. But to pay taxes as SLE in Ukraine you need to transfer these funds from the payment system to your SLE account, then convert them into hryvnia, and only after that withdraw them to your personal card and use them for purchases.

Unfortunately you cannot withdraw cash in foreign currency here – first it must be converted into hryvnia, and your only working tool for expenses is the hryvnia card.

Of course this creates an unpleasant moment with the exchange difference.

For example, you received 1000 dollars, and after exchanging you actually “get on your hands” significantly less because part of the funds “disappear” due to currency differences.

But if you want to work legally, plan to buy a car or apartment in the future, or scale your business – this is the only way.

Conclusion

Registering as SLE is not a formality but a matter of your freedom and financial peace. Legalizing income builds client trust, simplifies purchases, loans, and participation in grants or startups.

1. If you work only with Ukrainian SLEs or individuals and do not plan to enter the international market – choose the second group.
2. If you work in foreign economic activity and receive payments from Upwork, Fiverr, Europe, the USA – choose the third group and do not hesitate!

And do not forget about USC – this is a mandatory contribution to the pension fund that forms your future pension.

If you are unsure which group, system, or specific UACE code suits your activity – contact our accountants for a consultation. We can not only advise but also handle the entire registration process for SLE – you focus on growing your business while we handle documents, reporting, deadlines, and all formalities.