Record Number of Sole Proprietorships Opened in Ukraine in 2023

by Roman Cheplyk
Wednesday, February 21, 2024
Record Number of Sole Proprietorships Opened in Ukraine in 2023

In 2023, Ukraine witnessed a record-breaking number of new sole proprietorships (FOPs), with nearly 315,000 registrations

This unprecedented figure surpasses not only the previous year's numbers but also the 2021 record of 268,382 FOPs, marking the highest registration in Ukraine's history for any given year.

Research by YouControl.Market highlights this significant increase, also noting a substantial rise in the registration of legal entities and companies, reaching 27,300 in 2023. Although these numbers have yet to return to pre-war levels, the positive growth trend of about 60% is noteworthy.

Predominant Sectors for New FOP Registrations: The beauty industry led the surge in new FOPs, particularly in hairdressing and beauty salons, which saw a fourfold increase. The construction sector also saw a significant rise in the number of companies engaged in building activities.

Key sectors for new FOPs included:

  • Hairdressing services and beauty salons: 19.4 thousand
  • Retail trade in non-specialized stores: 18.1 thousand
  • Online retail trade: 17.9 thousand
  • Computer programming: 17.5 thousand

The IT sector, a leader in FOP registrations during the first year of the war, saw its share nearly halved in the second year of martial law.

Company Sector Choices:

  • Non-specialized wholesale trade: 6.7%
  • Real estate leasing: 6.2%
  • Construction of residential and non-residential buildings: 3.8%
  • Road freight transport: 3.1%

Financial Insights: Data from the Spending portal indicates that newly established companies in the construction sector received 236 million UAH in state funds in 2023. Companies based in Kyiv and Kharkiv were the largest recipients, securing 33.4 billion UAH and 30.5 billion UAH, respectively.

Top Cities for FOP Registrations: Kyiv led with 9.8 thousand companies and 44.6 thousand sole proprietorships, followed by Dnipro, Kharkiv, Odesa, Zaporizhzhia, and Kryvyi Rih. Despite the ongoing Russian missile attacks, Ukrainian entrepreneurs demonstrate resilience and continue to drive the country's economic development.

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