Ukrainian Sole Proprietorships Surge by 11,000 in Q1 2026: Leading Sectors and Regions

Growth of Ukrainian Sole Proprietorships in 2026

According to Главком: In the first quarter of 2026, Ukraine saw a net increase of 11,297 sole proprietorships (FOPs). A total of 63,920 new FOPs were registered, while 52,623 were closed, indicating positive momentum for the country's entrepreneurial sector. This growth comes amid ongoing discussions about tax reforms for small businesses.

Top Sectors and Regions for FOP Growth

The sector with the largest gain was non-store retail trade, which added 2,527 new proprietors. Other significant growth areas included:

• Education (+1,899 FOPs)
• Consulting (+1,230 FOPs)
• Other information services (+1,033 FOPs)
• Real estate leasing (+862 FOPs)

Conversely, several sectors experienced notable declines. The largest contractions were in:

• Retail trade at markets and stalls (-2,531 FOPs)
• Non-specialized store retail (-1,062 FOPs)
• Repair of household goods (-291 FOPs)
• Freight transport (-126 FOPs)
• Television broadcasting (-125 FOPs)

Geographically, the regions with the highest net growth were:

• Kyiv City (+1,826)
• Lviv Oblast (+1,651)
• Dnipropetrovsk Oblast (+1,450)
• Kyiv Oblast (+1,159)
• Odesa Oblast (+775)

The most significant regional declines were recorded in:

• Donetsk Oblast (-479)
• Kherson Oblast (-224)
• Sumy Oblast (-204)
• Zaporizhzhia Oblast (-97)
• Luhansk Oblast (-56)

This business activity unfolds against a backdrop of fiscal policy negotiations. The International Monetary Fund (IMF) had previously demanded that Ukraine introduce a mandatory value-added tax (VAT) for FOPs under the simplified tax system, stating that submitting a corresponding bill to parliament was a prerequisite for a new program. However, the IMF has recently agreed to remove this VAT requirement from its list of demands for Ukraine.

Commenting on this position, Yulia Tymoshenko stated: 'This is their insane plan that needs to be broken. And this means that our struggle with you continues!'

Consequently, the landscape for sole proprietorships in Ukraine remains dynamic, and future legislative changes could significantly impact entrepreneurial development. The rise in new FOP registrations signals a revitalization of business activity, which could be a positive economic indicator, particularly during tax system reforms. The challenges faced by certain sectors, like market retail, highlight the need for entrepreneurs to adapt to modern conditions. Meanwhile, the shift in IMF requirements may reflect Ukraine's pursuit of economic stabilization, though their implementation will require a measured approach to avoid adverse effects on small businesses.

As the number of sole proprietorships continues to rise, it is essential to consider their impact on employment in Ukraine. Recent reports indicate that over 800,000 Ukrainians are employed by these businesses, highlighting their significance in the labor market. For a detailed regional breakdown and insights into new support initiatives for these entrepreneurs, explore more in our comprehensive analysis here.