Legality of network companies in Ukraine

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First of all, it is worth clarifying that network companies operate absolutely legally in Ukraine. They are usually registered as limited liability companies (LLC), which usually pay corporate income tax (18% annually or quarterly), single social contribution (SSC), value added tax (VAT) and other taxes. Also, companies certify their products according to Ukrainian legislation.

As for individual distributors, they usually bank data start working as regular consultants. Later, partners must register as entrepreneurs (sole proprietors) and pay a single tax to the state treasury every month, depending on their profits.



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It is noteworthy that the government and tax authorities of Ukraine have not yet resolved the issue of taxation of networkers. The state does not interfere in the activities of multi-level business, except for direct violation of Ukrainian legislation by these companies. Many officials simply turn a blind eye to network marketing, holding only large players accountable.

In practice, most distributors operate “in the shadows,” without registering as private entrepreneurs. In this situation, the country does not receive the funds it is entitled to in the state treasury, but wins in terms of combating unemployment.