How to choose the right business activity classification (KVED)?

1. It is necessary to remember about the limitations in the choice of KVED under the simplified taxation system; There are a number of restrictions for FOP 1-2 groups. First you need to make sure that the type of activity that you want to do is not included in the list of prohibited ones.
2. It should be remembered that there is a main and additional KVED.
3. It is necessary to clearly define which classifier of activity will be the main one, and which ones will be additional.
4. It is believed that the main activity you get more income from, it describes the main line of business. There can be only one main KVED.
5. An error in the KVED can lead to the wrong choice of taxation group, which entails the accrual of fines by the tax authorities.

Pravelon Law Company offers its services in selecting the type of activity of your business chosen by the KVED, by the link.

When registering an individual as an entrepreneur / limited liability company, Pravelon Law Company takes into account all factors when choosing a KVED, as well as taxation groups, in order to avoid tax risks and audits.

Is it necessary to make changes to the statutory documents when replacing KVED for a limited liability company?

It all depends on what type of activity you add/remove/change. If you decide to change the main activity, you need to make changes to the statutory documents. If you have added / removed an additional KVED, we recommend that you consult with the lawyers of our company.

The activities of my company require obtaining a license, do I need to make changes to the statutory documents?

Yes, if, based on the types of activity, you need a license, when replacing / adding KVED, regardless of whether the classifier of the type of activity is the main and additional.

Is an extract issued after adding / deleting additional KVED?

An extract is issued only when the main activity of the enterprise is replaced.

However, data on additional activities are stored and published in the Unified State Register.

Are there any restrictions on the number of types of KVED activities in accordance with Ukrainian legislation?

The current legislation of Ukraine does not provide for restrictions on the number of KVED. But it should be remembered that KVED should not contradict each other, as well as the main type of activity and the selected taxation group.

Does the amount of the administrative fee for the number of KVED change?

According to the legislation of Ukraine, it is fixed, regardless of the number of KVED.

In what cases should the company's activities be changed?

• If necessary, add new types of economic activity;
• If necessary, remove unused types of economic activity from the register;
• For changing the type of activity of an existing company;
• in case of a merger of enterprises;
• When distributing companies;
• When buying an existing company, if the activities do not suit you;
• In a number of other personal cases.

How to change KVED for an individual entrepreneur?

To change the KVED for sole proprietorship, it is enough to make a decision to make the appropriate changes to the USREOU. Notarization of the decision is not required.

How to change KVED for a legal entity?

To change the KVED for a legal entity, it is necessary to convene and hold a general meeting of participants / founders. In this case, the decision of the general meeting must be recorded in the minutes and notarized.

The decision to change the KVED is made in accordance with the statutory documents of the enterprise.

Are the owners of the company required to personally be at the notary to draw up the protocol?

To draw up a protocol on making changes to the EDRPOU on KVED, the owners / owners of the company can be present either in person or by issuing notarized powers of attorney for authorized persons.

Who can register changes with the state registrar?

The head of the company or an authorized person by proxy can carry out the procedure for submitting documents. The power of attorney must be issued on behalf of the company and certified by a notary.

How to change KVED for an individual entrepreneur?

To change the KVED for sole proprietorship, it is enough to make a decision to make the appropriate changes to the USREOU. Notarization of the solution is not required.

How to change KVED for a legal entity?

To change the KVED for a legal entity, it is necessary to convene and hold a general meeting of participants / founders. In this case, the decision of the general meeting must be recorded in the minutes and notarized.

The decision to change the KVED is made in accordance with the statutory documents of the enterprise.

Are the owners of the company required to personally have a notary public to draw up the minutes?

To draw up a protocol on making changes to the EDRPOU for KVED, the owners / owners of the company can be present either in person or by issuing notarized powers of attorney to authorized persons.

Who can register changes with the state registrar?

The head of the company or an authorized person by proxy can carry out the procedure for submitting documents. The power of attorney must be issued on behalf of the company and certified by a notary.

Pravelon's lawyers answered frequently asked questions about the selection of classifiers for the type of business activity. Also, we advise you to seek the help of qualified lawyers when starting your own business. Pravelon has over 20 years of business registration experience.