Group 3 of PE activity types 2024.

In Ukraine, to conduct legal activities, it is necessary to establish a Sole Proprietorship (ФОП). This is a special type of activity where the entrepreneur pays all taxes. There are a total of 3 such groups with different conditions. 

These groups differ not only in tax amounts but also in other restrictions. Therefore, it is essential to study all types of activities for ФОП group 3 before planning to transition to this group. For example, the first group and the third group differ in business profit and the ability to hire employees. For many entrepreneurs, this is quite a significant difference. 

ФОП group 3 2024 types of activities

So, to understand ФОП group 3 types of activities, it is necessary to know what is being discussed. In general, individual entrepreneurs (ФОП) in Ukraine are required to choose a group. This is the task of any entrepreneur in Ukraine. For this, it is necessary to study ФЛП group 3 types of activities right away. 

If we put it simply, the third group is one of the most popular among small and medium entrepreneurs. The first group is the most popular for small entrepreneurs. 

To begin with, the third group of ФОП allows entrepreneurs to conduct their activities with a simplified tax system. It is suitable for those who plan to run a business without excessive bureaucracy and high tax expenses. The main tax for ФОП of the third group is a single tax, which can be determined based on income. At the same Time, this group has quite a few rights, which will certainly be appreciated by medium business owners. 

The distinguishing features of this group are: 

1. Simple reporting. It is also called simplified. This means that the entrepreneur does not need to fill out a lot of reports, which complicates the business process. 

2. Relatively low taxes. The simplified tax system allows for significant savings on taxes.

3. This group does not pay VAT. This allows for setting prices on goods lower than those considering VAT, 

This group assumes decent earnings but is quite simplified.

What activities fall under ФОП group 3? 

The main condition for transitioning to ФОП group 3 is the type of activity of the entrepreneur. In 2024, the old rules regarding types of activities under this group remain in effect. 

Primarily, it is about trade. This is the main type of activity. Entrepreneurs usually pay ФОП group 3 in this area. This group includes retail activities, such as selling goods directly to consumers through stores or online platforms. It also includes wholesale trade (including selling goods to other entrepreneurs). 

Services also fall under this group. ФОП of the third group can provide various services, including:

1. Service industry services: hairdressing, cosmetic, repair work, etc.

2. Consulting services: accounting, legal services, business consultations.

3. Educational services: tutoring, courses, training.

This group also includes manufacturing activities. This refers specifically to small production. For example, manufacturing furniture such as chairs or tables and home decor. This category also includes food production. This involves bakers, confectionery products, and farming. 

Agricultural activities also fall under ФОП group 3. This includes growing agricultural crops such as vegetables and fruits. Entrepreneurs engaged in livestock are also eligible for the third group, meaning raising livestock and poultry. 

How to choose a type of activity?

An entrepreneur independently chooses a group to pay taxes. However, they must meet the stated conditions. What to consider when choosing a group: 

1. First of all, it is essential to choose the direction of activity. 

2. It is also necessary to understand how much average profit a particular activity brings. 

Regarding choosing activities for group 3, it should be based not on the tax group but on one’s abilities, interests, and other accompanying factors. The groups of ФОП in this case are a consequence, not the primary cause of a particular activity. Especially in Ukraine in 2024 when any business faces many dangers and risks. It is also important to consider that, by the end of this year, there is a draft law prepared regarding tax increases. This will also significantly affect entrepreneurial activities in Ukraine. 

As for the registration of ФОП of any group, it is necessary to: 

1. Register as an individual entrepreneur with the tax authority.

2. Choose a tax system. Indicate that you want to work in the third group.

3. Open an account. It is better to open a settlement account in a bank for financial transactions.

Many of these processes can be conducted in the "Дія" application, which significantly simplifies all subsequent tax payments.