Last year, Ukraine saw the largest number of individual entrepreneurs since the emergence of this tax format. This is stated in a study by YouControl, according to with reference to Ekonomichna Pravda.
Between 1 February 2023 and 1 February 2024, 314,392 sole proprietorships were opened in Ukraine. This is 60% more than in 2012 and even more than in 2021, when the previous record for the number of sole proprietorships was set – 268,382.
Thus, an absolute record has been set for the entire period of existence of this tax mechanism.
The most popular areas of activity for new individual entrepreneurs were hairdressing and beauty salons (19,426 new individual entrepreneurs), retail trade in stores (18,102), and retail trade via mail and the Internet (17,901).
IT activities dropped to fourth place from first place in 2022.
Most businesses were opened in Kyiv (44,675), Kharkiv (14,139), and Dnipro (12,128).
The simplified taxation system for individual entrepreneurs has been in place in one form or another since 1999, but it has gained particular popularity in the last decade as it has become easier to use. This popularity has even led to harsh criticism of the mechanism. It is believed that it does not really help bring businesses out of the shadows, as, on the contrary, large businesses use individual entrepreneurs to avoid paying large taxes.