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2017.06.23
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How to establish vape shop. Business registration. Part I

How to establish vape shop. Business registration. Part I

If typing a query “how to establish a vape shop”, search engines will provide a lot of tips on choosing a room, range of products, staff but won’t give a cue in one thing: what documents are required to establish a vape shop.

This issue can puzzle even operating entrepreneurs, and that’s fair enough: they establish their own business in order to obtain profit rather than tinker with papers.

If you decide to avoid legal services offices and to deal with vape shop documents on your own, read this material. We can assure you that this is the first article providing all documents required for establishing a vape shop.

Main concept

Vape shop establishment means, generally speaking, creating business in order to gain profit. You will be responsible for it. If summing up everything and reviewing it from the perspective of legislation, you will appear to be a sole trader. That’s the way you should register yourself when opening a vape shop.

By the way, its registration is necessarily. Each lawyer will tell you about this aspect and Svetlana Moroz specializing in economic crimes has even explain why it is so important.

Then, you should define a tax system. Ukraine has two kinds of it: general and simplified ones. It is better for a sole trader to choose the second system, because of the following: firstly, its tax rate is lower, and secondly, financial data reporting requirements are more flexible.

Truly speaking, it also have some ins and outs: the simplified system divides into four groups, but the fourth one is related with the agricultural activity, so you can ignore it immediately and focus on three others. What are the differences between them? Initially, it is referred to the sum of your turnover per year.

Indeed, it is difficult to say at once what results the vape shop will show in a year. However, you can easily shift from one group to another (but only once a year), so just choose one of three groups and go.

! Useful link to the Verkhovna Rada website, providing the list of documents related with the simplified tax system, including the application for shifting to it.

Preparatory phase

And here is the most interesting aspect: what, how, and where. It all starts with the preparation of vape shop documents, in particular:

  • application for official registration of the sole trader (form 10);
  • application for the simplified tax system (mentioned above) and voluntary registration as a VAT payer.

Check 10 times (or even 20) filled data: names, addresses, figures, letters and so on and so forth. We are not kidding. The most common mistakes appear not so much in document forms and sheets and as in specified information.

Legal filing

Now, when you are 110% sure in filled documents for vape shop establishment, grab this raft of papers and go to the Administration Service Centre.

Why there is a raft of them, if only three ones have been mentioned? The fact is that you should also add the whole package of the following:

  • application to be filled on site;
  • copy of your passport and ID code;
  • if your grandmother comes instead of you, she should have documents, allowing her to act on behalf of you. Speaking formal language, authorized person’s credentials.

Thereafter, you will get a record statement for registration acts. It contains the code, allowing to monitor completed actions on the Ministry of Justice website. Similar to the pizza tracker of Domino’s Pizza.

In 24 hours, you should get the extract from the United State Register of Legal Entities, dividual Entrepreneurs and Public Organizations of Ukraine.

If you think that's your lot, you are about right: operations with the Administration Service Centre are completed. But wait, there is more.

State Fiscal Service of Ukraine

To avoid any legality issues, you should register your business in the State Fiscal Service of Ukraine.

You should prepare the request for obtaining the extract from Register of single tax payers and the request for obtaining the extract from Register of VAT payers. 

Submit a request to the State Fiscal Service at the place of sole trader registration and provide the book of income and expenses.

You can obtain the extract within 10 days.

Statistics

“Should we attend anything else even after the Fiscal Service? Really?” you think. Yes, you should. Or, rather, not attend but prepare the application for obtaining information in the State Statistics Service of Ukraine and pay fee when getting it.

After preparation, you should submit the application in this very Service and get necessary information.

Do not call them within three days: the law gives them this period to provide you with information. But you may call them on the fourth day. According to the law, the Service is obliged to provide you with them within the specified period.

“WHAT ELSE?”

At this point, you might think: “Hell with that! I’d better obtain legal advice or give up on vape shop establishment.” Get this idea out of your head, because that’s it!

Congratulations! You have managed to collect, make out and submit all documents required for vape shop establishment successfully and independently. Now, your business is completely legal.

Besides registering the enterprise as a sole trader, it can be also registered as a legal entity. When, why and how should one choose this kind of activity? Read the next part that will appear in VAPEXPO Kiev news soon.

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