After registering as a sole proprietor (individual entrepreneur) or becoming a company founder (LLC), your sole proprietorship or legal entity officially exists in the Unified State Register of Ukraine. However, certain business activities require permits and other authorizing documents. If your selected KVED activity codes require a business license, you cannot legally commence those activities until the required license has been obtained. Operating without a mandatory license may be considered unlawful and can result in fines, suspension of business operations, and other penalties.
As of September 16, 2026, the Law of Ukraine “On Licensing Types of Economic Activities” No. 222-VIII is the principal legislation governing business licensing. It establishes the list of business activities requiring a license, the general licensing procedure, and the rights and obligations of license holders. Special rules apply to certain sectors, including alcohol, tobacco, and fuel, under Law No. 3817-IX dated June 18, 2024.
General Procedure for Obtaining a Business License
1. When registering your business, it is advisable to check whether your chosen KVED activity code requires a license (Article 7 of Law of Ukraine No. 222-VIII, as amended on September 16, 2026).
2. If a license is required, carefully prepare the application documents in accordance with the applicable licensing conditions. These usually include an application, information about the business premises or locations where the activity will be conducted, and evidence of the available facilities and equipment, staff qualifications, financial standing, and other relevant requirements.
3. Submit the documents to the relevant licensing authority. Depending on the applicable procedure, you may submit them in person, by post, or electronically through the Diia platform, the relevant authority's electronic portal, or the Ministry of Economy's portal using a qualified electronic signature.
4. Applications are generally reviewed within up to 10 business days.
5. If the application is approved, the relevant information will be entered into the licensing register.
From that point onward, you can legally conduct the licensed business activity.
Overview of Popular Business Licenses in Ukraine
1. License for Passenger and/or Freight Road Transport
The licensing authority for this type of activity is the State Service of Ukraine for Transport Safety (Ukrtransbezpeka). Licensing requirements apply to domestic passenger transportation by bus and taxi, the transportation of dangerous goods, and international passenger and freight transportation.
Separate licensing conditions and relevant authorities apply to maritime, inland waterway, air, and rail transport. These include the state authorities responsible for maritime and inland waterway transport, the State Aviation Administration of Ukraine, and other competent bodies. Requirements may include the availability of vehicles, employees' professional competence, business reputation, and financial standing.
The licensing authority for security services is the Ministry of Internal Affairs of Ukraine. The license is issued for an indefinite period. Requirements include confirmation of personnel qualifications, the availability of special equipment where necessary, and an adequate material and technical base. The administrative fee amounts to one subsistence minimum for an able-bodied person.
Since 2026, business entities holding this type of license have not been eligible to use Ukraine's simplified tax system.
3. License to Conduct Medical Practice
The licensing authority for medical practice is the Ministry of Health of Ukraine. The licensing conditions for this activity were updated effective September 1, 2026. The requirements concern personnel, premises, medical equipment, and professional specialties. Applications can be submitted entirely online through the Ministry of Health's Licensing Register.
4. Licenses for Alcohol and Tobacco Products
The licensing authority is the State Tax Service of Ukraine. Licensing requirements are governed by the special Law No. 3817-IX dated June 18, 2024. This law regulates the production and circulation of ethyl alcohol, alcohol distillates, bioethanol, alcoholic beverages, tobacco products, tobacco raw materials, e-cigarette liquids, and fuel. Licenses are mandatory for production and export-import operations, wholesale trade, retail trade, and the storage of excisable goods.
Special attention should be paid to the requirements for online sales. Online sales of alcoholic beverages, tobacco products, and e-cigarette liquids are permitted subject to mandatory age verification both when the order is placed and when the goods are handed over by a courier or delivery service.
Licenses are issued for an indefinite period, but the applicable license fees must be paid annually or quarterly. For retail trade, a separate license is required for each business location.
What Happens If You Operate Without a License?
If your business activity requires a license but you operate without obtaining the relevant authorization, you may face administrative liability under Article 164 of the Code of Ukraine on Administrative Offenses. The penalties may include a fine of 1,000 to 2,000 non-taxable minimum incomes of citizens (UAH 17,000–34,000), with possible confiscation of products, equipment, raw materials, and proceeds. If the violation is repeated within one year or the business generates income on a large scale, the fine may increase to 2,000–5,000 non-taxable minimum incomes (UAH 34,000–85,000), also with possible confiscation.
For alcohol, tobacco, and fuel, penalties under Law No. 3817-IX dated June 18, 2024, are significantly stricter. They may reach 200% of the value of the goods sold, subject to a minimum linked to several statutory minimum monthly wages, or consist of fixed penalties calculated by reference to the minimum monthly wage.
Practical Tips:
- Always check the current licensing conditions on the relevant licensing authority's website or through the Diia platform, as the requirements are frequently updated.
- Where permitted, submit documents electronically. This is faster and reduces the risk of errors.
- For alcohol and tobacco businesses, ensure that all business premises and facilities have been registered using Form 20-OPP before submitting the license application.
- Keep all electronic confirmations of document submissions and licensing decisions, as they may be required during inspections.
- If you plan to conduct several types of business activities, first check whether the relevant licenses are compatible with your chosen tax system.
Conclusion and Professional Recommendations
Business licensing is a mandatory requirement for lawful operations in many sectors. Digitalization has made the licensing process significantly more convenient, but the documentation requirements and obligations to comply with licensing conditions remain strict.
Proper preparation of the application documents and obtaining the required license on time help protect your business from substantial fines and allow you to operate and grow with greater confidence. In complex cases, particularly those involving transport, medical practice, or alcohol, it is advisable to consult a legal professional who can help you navigate the licensing procedure and reduce the risk of rejection.
