Opening a vending business in Ukraine can be a thrilling and a lucrative undertaking, but it also has legal paperwork and specifications. There are various processes to follow before you are able to operate a vending machine legally, including registering your business, observing health safety and consumer protection laws.
In this article, we will address the key legal information on vending business in Ukraine, so you are clear on what to expect.
Registering Your Business: Private Entrepreneur (PE)
There are two steps you need to complete, to legally operate a vending business in Ukraine. This is the most popular type of business for individuals in Ukraine, which provides the opportunity to operate as a sole enterprise. The registration process of a PE may seem to be simple and has a few steps to be followed.
Steps to Register Your Business
- Obtain a Tax Identification Number (ІПН): This number is essential for all business-related activities, including paying taxes.
- Choose the correct KVED code: When registering as a PE, you’ll need to specify your business activity using the KVED code. For vending, the relevant code is 47.99, which covers “Other retail trade not in stores.”
- Visit the Tax Office: Go to your local tax authority to submit the required documents and complete the registration. This typically involves filling out a registration form, presenting your ID, and providing any other necessary paperwork.
Retail Trade Regulations
The vending machines in Ukraine operate within the sphere of regulations to the retail trade. As a vending machine operator, you should know about these laws and familiarize your business with them in order for it to be compliant.
- Consumer Rights Protection: As the Ukrainian law stipulates, vending machines are to be in line with the Consumer Protection Law. This implies that you need to include precise, truthful information regarding the products you are retailing including prices, sizes and varieties of products.
- Display Information: In each and every vending machine, it is important that you have information that is visible to the people on what is being sold, including the constituents of what drinks are being offered, the size of each cup and the price of each size of drink. You also need to list the contact number of the owner to answer customer enquiries.
Obtaining Permission for Installation
The next most crucial aspect of a vending machine set up is gaining the permission to install it. You cannot always put a vending machine in the same way but the process may incline a little bit depending on the location where you are intending to place them.
Installing in a Retail Store or Business
In case you intend to locate your vending machine in a retail store or any other business, the process is not so difficult. You only need to seek the permission of the owner to place the machine in his area.
Installing in Public Areas or Shopping Centers
In case you would like to install your vending machine on the street (like in the corner of the street) or in an exchange like a shopping mall, it is going to be more difficult. Vending machines in these places are categorized as small architectural structures. This implies that you must seek clearance from local authorities.
Once you decide where you want to install the vending machine in a public space, you should check with the urban planning department to make sure that it is permissible to have a vending machine in that particular place based on zoning regulations. The permission guarantees that you are not infringing the urban development regulations.
Health and Safety Regulations
Like any business dealing with food or drink, vending machines are required to be of a high standard with regard to health and safety. Such regulations can make your vending machine the safest one to use, and your products are of high quality.
- Sanitary Permits: You must obtain approval from the Sanitary and Epidemiological Station. This ensures that the food or beverages sold in your vending machine meet health standards.
- Fire Safety Approval: If your machine is placed in a public space, you will also need to obtain a fire safety permit. This confirms that your vending machine complies with fire safety standards and does not pose a fire hazard.
You must maintain such certificates so that they can be accessed in case of inspection or audit. This will contribute to making sure that your vending machine will be able to continue functioning as usual.
Renting Space for Your Vending Machine
In case your vending machine is going to be placed at commercial premises, e.g. at a shopping mall or office, you may have to enter into a rental agreement with the real estate owner. They should also explicitly lay down the terms of the use of agreement, in rent, period of time and maintenance duties.
This agreement is noteworthy in that it cushions the individual and the property owner. It makes both sides aware of the contracts and rules and you can be confident that your vending machine is lawfully allowed to occupy the area.
Certification for the Vending Machine and Products
Make sure that following the verification of the Ukrainian regulations, you obtain the needed certifications in order to make sure that your vending machine, as well as products it distributes, do not conflict with the Ukrainian laws. This comes in the form of certificating the machine itself as well as the ingredients or products contained in them.
- Certification for Products: If you are selling food or beverages, you must have quality and safety certificates for each item sold. This is crucial for complying with Ukrainian food safety regulations.
- Vending Machine Certification: Your vending machine should also be certified for safety. This ensures that it meets national standards for equipment used in public spaces.
Final Steps: Operating Your Vending Business
When everything is fulfilled legally, you can just go ahead and you are running your vending machine business in Ukraine. The following are the last steps to remember:
- Register as a Private Entrepreneur (PE) and choose the correct KVED code.
- Familiarize yourself with retail laws and consumer protection regulations.
- Obtain permission for installation from local authorities, particularly if you’re setting up in a public space.
- Secure health and safety permits, including those from the Sanitary and Epidemiological Station and Fire Safety authorities.
- Sign a rental agreement for the space where your vending machine will be located.
- Obtain the necessary certifications for the vending machine and its products.
Conclusion
There are various steps one needs to go to start vending business in Ukraine, yet knowledge and planning in advance certainly facilitate the process. Registering your business as a Private Entrepreneur to acquire the required permits and certifications, every step will make your vending machines work in accordance with the law. Keep within the local legislative and regulatory framework and you are halfway there to making an efficient vending business venture in Ukraine.
