Non-Resident Sole Proprietors in Ukraine: Dynamics, Challenges, and Their Contribution in 2025
Entrepreneurial activity by foreigners in Ukraine is a visible, though not massive, phenomenon. Over the first nine months of 2025, more than 1,600 foreigners officially opened their own businesses as sole proprietors (FOPs). This is almost 10% less than last year, but the quality, resilience, and profile of these entrepreneurs deserve special attention. What role do they play in the developing economy, what is changing in the structure, and why does Ukraine remain open to small foreign business even during wartime? Let’s review the facts without illusions.
According to the Unified State Register, 1,648 foreigners registered as sole proprietors in Ukraine in 2025 (over nine months). For comparison, this is 10% less than in the same period of 2024. This decline is partly due to general economic uncertainty and increased business risks under martial law.
“Opening sole proprietorships by foreigners is an absolutely normal and legal practice. People who have a temporary or permanent residence permit in Ukraine receive a taxpayer number (RNOKPP), so they can officially conduct business and pay taxes on par with Ukrainian citizens,” explains Denys Popov, head of the legal department at Opendatabot.
At the same time, the net increase between openings and closures this year amounted to 490 non-resident FOPs: 1,648 opened, 1,158 closed. In total, more than 213,000 entrepreneurs closed their businesses in the country, and only 0.5% of them were foreigners.
Who Are These Entrepreneurs and What Do They Do
The portrait of a non-resident FOP differs from the average Ukrainian: 69% are men, 31% are women. The median lifespan of such a business is 3.1 years, which is even higher than that of the average Ukrainian FOP (2.5 years). The oldest registered foreign FOP was a woman from the Russian Federation whose business operated for 30 years.
By country of origin, the leaders are citizens of Azerbaijan (14% of all non-resident FOPs), Russia (14%), Uzbekistan (10%), Moldova (8%), and Armenia (6%).
In terms of closures, the leaders are citizens of Russia (21% of all closed non-resident FOPs), Azerbaijan (14%), Moldova (9%), Uzbekistan (8%), and Belarus (6%).
Every third foreigner starts their business specifically in Kyiv (544 FOPs in 2025). Next are Odesa region (300 FOPs, 18%), Kyiv region (138, 8%), Kharkiv region (104, 6%), and Lviv region (83, 5%). The fewest foreign entrepreneurs are registered in Volyn, Chernihiv, Sumy, Donetsk, and Kherson regions (from 2 to 17 FOPs).
Which Business Sectors Do Foreigners Choose
Traditionally for Ukraine, trade is the main sector for new non-resident FOPs (almost every third business). Next in popularity are public catering (14%), wholesale trade (9%), computer programming (6%), and information services (4%).
Foreign businesses also mostly close in the same sectors: trade (37%), programming (10%), and public catering (9%).
Legal Nuances: How Easy Is It to Become a Non-Resident Entrepreneur
The procedure for opening a FOP for a foreigner in Ukraine is transparent and regulated by law. It is necessary to have a residence permit and to obtain a taxpayer number (RNOKPP). As Denys Popov notes:
“Only those who legally reside on the territory of Ukraine can open their own business. In this case, the procedure does not differ from opening a FOP by any other non-resident.”
Non-resident FOPs make up only 0.7% of all new entrepreneurs, but they bring new business models, investment, and experience working in international markets. In a situation where the number of openings has decreased and the risks of doing business in Ukraine remain high, even such a modest increase matters.
- Foreign entrepreneurs create new jobs, pay taxes on par with Ukrainians, and often bring innovation to the fields of trade, catering, and IT.
- The median lifespan of a foreigner’s business is longer than that of the average Ukrainian, which indicates higher resilience and trust in the country even during wartime.
- The leadership of Kyiv and Odesa as centers of attraction for non-residents confirms the role of metropolises in shaping the entrepreneurial climate.
At the same time, it’s important to be critical: the share of foreigners is still small, and this is rather a complement to the overall entrepreneurial landscape than a decisive factor in economic development.
Ukraine remains open to small and medium-sized foreign business even during periods of upheaval. This resilience is not only about numbers, but about trust, integration, and the globalization of the local market.
About the Author
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