Freelance and Coworking: how does it work in Ukraine?
Everyone knows that Ukrainian legislation always lags behind the economic development and its advanced industries. Especially it is clearly visible in the IT field.
Freelance in Ukraine is actually is not regulated. Provided by law the concept of “self-employed person” intimidates by their criteria and strange approach to taxation.
To work normally under civil contracts is not always possible. Despite the fact that taxes paid for such contractors are the same as for the employees, the state occasionally intimidates with penalties for “recognition of labor relations” and punishment for “violation of the rights of employees.”
Therefore freelancing in Ukraine is “legalized” usually by registration of individual entrepreneurs.
The classical coworking looks like platform, where freelancers can rent work place, working separately or in groups, maintaining their autonomy and independence from each other and from coworking. Often coworking is used as an intermediary between the finite customer of the product and freelancers themselves.
Problems of coworking in Ukraine start from the lack of definition of this concept in the law. But the biggest risks of their establishment and operation are hiding in the way of treating of their activity by supervisory authorities.
At first glance, if the coworking isused only for its natural purpose – providing facilities and technical support, there should be no questions to its activities.
However, you should always be aware that regulatory authorities may search a number of offences: concealment of labor relations, business of foreign entity without registration in Ukraine tax evasion.
It is therefore essential during its creation to consider all possible nuances of Ukrainian legislation and the judicial and tax practices.
Coworking can be registered as a limited liability company, as an NGO, in simplified form functions of “coworking” can be performed by the individual entrepreneur.
For the creation of coworking and other services in IT law, please contact us.