How to open an auto parts store: step-by-step instructions

To open an auto parts store, you need to register a business, choose KVED 45.32, find premises with a warehouse, connect an ECR or pECR, agree on cooperation with several suppliers, and set up inventory management by part numbers and vehicle compatibility. For a small store of 40–70 m², the estimated startup budget is approximately UAH 650,000–2,100,000, with most of the money going into initial inventory. If the premises are ready, the store can realistically be prepared for opening in approximately 3–6 weeks.

Is it worth opening an auto parts store

An auto parts store makes sense where the business owner can ensure accurate parts selection, fast delivery, and clear return procedures. The product range in this market is very large, so keeping every possible item in stock is economically inefficient. Some products are sold from the store’s own inventory, while others are ordered specifically for a customer.

Competition is not limited to other stores. Customers can find a part in an online store, on a marketplace, from a distributor, or through a service station. Therefore, a physical store needs a practical advantage: the salesperson can quickly find the required part number, see alternatives and compatibility, check the actual stock level, and provide an estimated delivery time.

There is no single standard margin for this market. Original parts, budget alternatives, batteries, filters, body parts, automotive chemicals, and consumables have different purchase prices, levels of competition, and turnover rates. It is better to build the business plan separately by product group, taking into account purchase price, logistics, returns, warranty cases, sales velocity, and money tied up in inventory.

The main financial risk for an auto parts store is excess inventory. A part may be technically sound but remain unsold for months because it fits only a narrow range of vehicles. Therefore, at the start, it is more important to ensure fast access to suppliers’ warehouses than to purchase the maximum possible number of items.

How much money is needed to start

Below is a sample budget for a small 40–70 m² store with one checkout, a warehouse area, and approximately 800–1,500 items permanently in stock. This is a planning scenario, not an average market price: the actual amount depends on the city, the condition of the premises, the brands, and the depth of inventory.

Expense item	Estimate	What it depends on
First month’s rent and deposit	UAH 30,000–90,000	City, floor area, customer traffic, loading access
Renovation, lighting, signage	UAH 40,000–150,000	Condition of the premises and scope of work
Shelving, racks, bins, pickup area	UAH 60,000–180,000	Warehouse size and number of storage locations
Checkout and warehouse equipment	UAH 45,000–110,000	Computer, scanner, printer, data collection terminal, backup power supply
Initial inventory	UAH 350,000–1,200,000	Number of categories, brands, and inventory depth
Labels, packaging, consumables	UAH 5,000–15,000	Volume of labelling and order fulfilment
Website launch, product cards, and advertising	UAH 15,000–50,000	Sales channels and amount of prepared content
Working capital reserve	UAH 100,000–300,000	Supplier payment terms and inventory turnover
Total	approximately UAH 650,000–2,100,000	Excluding a delivery vehicle and major renovation work

If your starting capital is limited, reduce the amount of inventory kept in stock. Build a core range of popular filters, bulbs, wiper blades, belts, brake components, bearings, spark plugs, fuses, and other items that have regular demand in your location. Sell the rest of the catalogue to order.

Step 1. Business registration

Sole Proprietorship or LLC

For one small store, the simplest starting format is usually a Sole Proprietorship. An LLC may be appropriate if there are several co-owners, significant corporate contracts, an investor, or if the business structure requires a separate legal entity.

A Sole Proprietorship can be registered online through the Diia portal. The application can immediately specify the taxation system and KVED codes. The Sole Proprietorship registration is entered into the Unified State Register within two business days.

Which single tax group to choose

Group 2 is suitable for a small retail store if the entrepreneur complies with the established income limit and other requirements of the simplified taxation system. The annual income limit is UAH 7,211,598. The maximum single tax is UAH 1,729.40 per month, the military levy is UAH 864.70, and the minimum Unified Social Contribution is UAH 1,902.34.

Group 3 provides a higher income limit of UAH 10,091,049 and is suitable for a business that is growing quickly, has a significant share of wholesale or corporate sales, or plans to work with VAT. The single tax rate is 5% of income or 3% with VAT, while the military levy is 1% of income.

If the store plans to import goods, have high turnover, sell to large VAT payers, or work under complex contracts with counterparties, the taxation system should be selected together with an accountant based on the projected turnover and customer structure.

Which KVED codes are required

• 45.32 — retail trade of motor vehicle parts and accessories. This is the main KVED code for a standard auto parts store.
• 45.31 — wholesale trade of motor vehicle parts and accessories. Add this code if you plan to sell wholesale to service stations, stores, or other businesses.
• 45.20 — maintenance and repair of motor vehicles. This code is required if a service station will operate together with the store.

How to submit the documents

For online registration, you need passport details, a taxpayer registration number, and an electronic signature. After registration, open a business bank account, check that you have been entered in the register of single tax payers, and prepare the documents required for the checkout and retail location.

Step 2. Permits and licences

No separate retail licence is required for ordinary auto parts. The store may sell filters, engine and suspension parts, electrical components, body parts, accessories, and other regular products after registering the business and retail location.

Products that are classified as fuel under their Ukrainian Classification of Foreign Economic Activity (UKT ZED) code should be checked separately. Fuel in consumer packaging of up to and including 5 litres may be sold without a retail fuel licence. Other packaging sizes and methods of sale are subject to separate licensing requirements. Do not determine the legal status of a product based only on everyday names such as «oil», «lubricant», or «fluid»: request the UKT ZED code and primary documents from the supplier.

For parts subject to vehicle, component, and equipment conformity assessment requirements, keep the supplier’s documents confirming the origin and conformity of the products. New regulations approved by Cabinet of Ministers Resolution No. 389 take effect on 27 September 2026. Importers and sellers of regulated components should check which documents and markings are required for their specific product categories.

When receiving a shipment, keep delivery notes and accompanying documents, supplier details, part numbers, manufacturer information, warranty documents, and conformity documents where they are required for the specific part.

Step 3. Premises

For a small auto parts store, a practical format is a retail area of approximately 15–30 m² with a separate warehouse section. Important factors include vehicle access, the ability for customers to make short stops, convenient goods receiving, and proximity to service stations, tyre shops, car washes, or busy traffic routes.

Before signing a lease, check the landlord’s right to rent out the premises, the intended use of the property, available electrical capacity, the possibility of installing signage, warehouse access conditions, and each party’s responsibility for repairs. Separately specify who pays for utilities, security, and operating costs.

After signing the lease, submit Form 20-OPP to the State Tax Service. For a new or rented facility, the deadline is 10 business days from the date of the document that establishes the right to use it. The details of the business location will be required to register a pECR or ECR.

Divide the warehouse into logical zones from the beginning: popular small parts, bulky items, electrical components, fluids, batteries, goods awaiting pickup, and returns. Assign a short location code to each shelf or bin. When the product range exceeds several hundred items, address-based storage significantly reduces the time required to find products.

Step 4. Checkout and fiscalisation

A store that accepts cash or bank card payments must process payment transactions through an ECR or pECR. Exceptions include, in particular, payments made exclusively by direct bank transfer to an IBAN account under the conditions established by law.

Before starting checkout operations, you need to notify the State Tax Service about the business location, register the ECR or pECR and cashier keys, and provide customers with the option of cashless payment.

If checkout sales are processed in Torgsoft, the «Software pECR» option links fiscalisation with the sales transaction. This option is licensed separately for each computer or device on which it is used.

If a payment transaction is carried out without the required ECR/pECR, for an incomplete amount, or without issuing a fiscal receipt, a financial penalty applies: 100% of the value of the goods for the first violation and 150% for each subsequent violation.

Step 5. Retail equipment

An auto parts store needs equipment for fast product search, receiving, labelling, and stocktaking. You do not have to purchase everything at once: the required equipment depends on the number of SKUs and the size of the warehouse.

• Cashier computer. It is used to run the inventory management software, pECR, compatibility catalogues, and supplier accounts. Provide an uninterruptible power supply and backup Internet access.
• Barcode scanner. For a stationary checkout, you can use the Zebra LI 2208 scanner. It is used for sales and receiving goods that already have barcodes.
• Wireless scanner. If the salesperson works near the shelves or receives boxes in the warehouse, the Netum W6 X wireless scanner is a suitable option. It is easier to carry between the checkout and warehouse area.
• Data collection terminal. For a large warehouse, the Lecom N41U data collection terminal can be used during receiving and stocktaking so quantities do not have to be transferred manually from paper records.
• Label printer. The Xprinter XP-235B label printer is useful for parts without a suitable factory barcode, internal labels, and labelling storage locations.
• Bank terminal or another payment device. It enables card payments.
• Receipt printer. It is required if the store issues paper receipts. For electronic fiscal receipts, its use depends on how the checkout process is organised.

Step 6. Inventory and cash management

The main challenge of an auto parts store is that one part may have several part numbers, manufacturers, and alternatives and may fit different vehicles. If products are recorded only under a name such as «front brake pads», the salesperson will quickly end up with dozens of almost identical items.

The product card should contain the manufacturer, part number, OE number, supplier number, unit of measure, purchase and retail prices, warranty, storage location, and compatibility characteristics. Parts that can replace one another should also have alternative part numbers recorded.

It is better to build the product tree by part categories: braking system, suspension, engine, filters, electrical components, body parts, cooling system. If a separate structure is created for every make and model of vehicle, the same interchangeable part will begin to appear in several branches.

In Torgsoft, interchangeable items can be recorded on the «Alternatives» tab. It contains a text field, while «Warehouse Status» allows searching by product name and alternatives. Dynamic characteristics can be used for additional product parameters.

For VIN-based parts selection and catalogues such as TecDoc, use a separate specialised compatibility catalogue. The inventory management software should receive the already identified part number and then manage its stock, purchasing, sales, reservation, and financial transactions.

Do not monitor revenue alone on a daily basis. Important indicators include stock levels of popular items, products with no sales, customer orders, debts to suppliers, returns, manual discounts, and differences between physical and recorded inventory.

Step 7. Suppliers and product range

An auto parts store needs at least several suppliers with different brands, warehouses, and delivery times. For each supplier, record purchase prices, available credit limit, minimum order amount, dispatch time, delivery cost, procedures for returning incorrectly ordered parts, and warranty terms.

Build the initial product range based on demand frequency in your area. Create a list of common vehicles, talk to nearby service stations, and analyse requests made to potential suppliers. For each category, determine which items should be kept permanently in stock and which should be sold to order.

Do not purchase five brands of every part simply to create more choice. At the beginning, a few price levels are sufficient where customers genuinely need them. Money invested in slow-moving products reduces your ability to quickly replenish popular items.

Supplier price lists can be imported from Excel. To work with external warehouse data, the software provides a «Supplier Warehouse» mode that stores availability, price, and quantity data received from the supplier. This does not replace checking whether the data is still current with the supplier.

If a large part of the store’s operations is based on customer orders, take the software licence into account. Torgsoft Start does not include the «Create Supplier Order» and «Invoice-Based Sales» modes. Torgsoft Ultra includes these modes and is suitable for a workflow in which a manager creates an invoice, reserves goods, and creates a supplier purchase order.

Step 8. Staff

For a small store, the owner and one sales consultant may be enough, or two employees if the store has long opening hours and shift work is required. As the warehouse grows, a separate inventory specialist or warehouse worker may eventually be needed.

For an auto parts store, product knowledge is more important than general retail experience. The salesperson should understand part numbers, alternatives, vehicle generations, engines, common compatibility limitations, and know how to use electronic catalogues.

Before an employee starts work, formalise the employment relationship, issue the relevant employment order, and submit a notification to the State Tax Service before the employee actually begins work. With a minimum salary of UAH 8,647, the employer’s minimum Unified Social Contribution is UAH 1,902.34, so the employer’s direct cost for one full-time employee starts at UAH 10,549.34 per month, excluding other personnel expenses.

Before the first shift, define the rules for sales, returns, manual price changes, discounts, reservations, order pickup, and checkout operations. Separately specify who is authorised to edit product cards and create new part numbers.

Step 9. Launch and first sales

One week before opening, complete the opening inventory records and check prices, the checkout, pECR, bank terminal, scanners, printer, and employee access rights. Test several scenarios: a regular sale, return, sale to order, prepayment, and receiving goods from a supplier.

Add the store to map services, publish the opening hours, phone number, and main product categories. If you create a website, first ensure search by part number and component number, up-to-date stock availability or a clear «to order» status, the price, and available delivery or pickup methods.

At the start, it is more useful to collect customer search requests that the store could not immediately fulfil. After a few weeks, these requests will show which brands, product groups, and vehicles are missing from your inventory. Use this information to gradually expand the stock.

Common mistakes at the start

1. Investing all available capital in inventory. The store needs a cash reserve for urgent purchases, rent, salaries, returns, and seasonal fluctuations.
2. Building the catalogue by vehicle makes. Interchangeable parts are duplicated, making inventory and purchasing more difficult.
3. Not recording part numbers and alternatives. The salesperson spends more time searching and is more likely to order the wrong item.
4. Not agreeing on return terms with suppliers. An expensive incorrectly selected part may remain in stock for a long time.
5. Not using address-based storage. Employees know that the product exists in the system but spend time physically searching for it.
6. Receiving goods without documents. For warranty and regulated parts, this creates problems with returns, verification of origin, and confirmation of conformity.
7. Treating all automotive chemicals as ordinary goods. Products classified as fuel under their UKT ZED code may be subject to separate licensing and circulation rules.

Opening checklist

1. Choose the format: store, store with warehouse, store + service station, offline + online.
2. Calculate the budget and keep a working capital reserve.
3. Register a Sole Proprietorship or LLC.
4. Add KVED 45.32 and any required additional KVED codes.
5. Choose a taxation system.
6. Open a business bank account.
7. Find suitable premises and sign a lease agreement.
8. Submit Form 20-OPP.
9. Check product groups that require special documents or licences.
10. Sign agreements with several suppliers.
11. Define the list of products that will be permanently in stock and the range that will be sold to order.
12. Create the catalogue structure by part category.
13. Enter part numbers, manufacturers, alternatives, and compatibility characteristics.
14. Number warehouse shelves and storage locations.
15. Purchase a computer, scanner, label printer, and other required equipment.
16. Register the ECR or pECR and cashiers.
17. Connect cashless payment.
18. Complete employee registration before they start work.
19. Carry out the initial stocktaking.
20. Test sales, returns, prepayments, and supplier orders.
21. Publish the address, opening hours, and contact details.

Questions and answers

?Do I need a licence for an auto parts store?

No separate licence is required for ordinary auto parts. If some products are classified as fuel under their UKT ZED code, check the special rules. A retail fuel licence is not required for fuel sold in consumer packaging of up to and including 5 litres.

?Which KVED code is required for an auto parts store?

The main KVED code for a retail auto parts store is 45.32 «Retail trade of motor vehicle parts and accessories». For wholesale trade, add 45.31; for your own service station, add 45.20.

?Can an auto parts store operate under Group 2 of the single tax system?

Yes, if the business meets the Group 2 requirements and does not exceed the established income limit. If turnover approaches the limit, VAT registration is required, or the business model becomes more complex, it may be worth considering Group 3 or the general taxation system.

?Is a pECR required?

For cash, card payments, and other payment transactions, Sole Proprietorships under Groups 2 and 3 use an ECR or pECR. A direct customer transfer to an IBAN account is subject to separate rules and is not treated in the same way as a regular card payment at the checkout.

?Can an auto part be returned within 14 days?

A non-food product of proper quality may be exchanged under the general rules if it has not been used and its original appearance, seals, labels, and proof of purchase have been preserved. An installed or used part usually no longer meets the requirement of being unused. Defective products are subject to the rules for goods of improper quality and warranty claims.

?Do I need to keep the entire catalogue in stock?

No. For a small store, it is more practical to keep popular items in stock and have access to several supplier warehouses. Rare, expensive, and vehicle-specific parts can be supplied to order.

?How do you select parts by VIN?

VIN-based parts selection requires a specialised automotive catalogue or compatibility database. Once the specific part number has been identified, the inventory management software handles its purchasing, stock, reservation, sale, and return.

?What changes if the store also has a service station?

Add KVED 45.20 and keep separate records for goods and services. The «Repair and Warranty Service» option manages repair requests, work stages, materials used, services, payments, and documents. Parts used in repairs must be written off from inventory against the corresponding transaction.

Where to start with automation

Before purchasing equipment, test your own workflow: create several auto part cards with part numbers and alternatives, receive goods into stock, print a label, process a sale and a return, locate a part in the warehouse, and create an item to order. This will help you understand which characteristics, directories, employee permissions, and warehouse equipment your store actually needs. The Torgsoft demo version works for 30 days. Equipment for checkout and warehouse operations is available in the POS equipment section.

The amounts, rates, limits, and requirements are stated as of August 2026. Tax legislation changes over time: before registering a business or submitting documents, check the current figures on the website of the State Tax Service of Ukraine.