How to open a retail store

To open a small retail store, you need to register a business, choose KVED codes and a taxation system, find premises, register them with the tax authorities, set up an ECR or pECR, purchase equipment, record the goods in inventory, and formally employ staff. For a store with an area of 20–50 m², the planned budget is approximately 300,000–900,000 UAH, depending on the initial stock and renovation costs. If the premises are ready, the launch can usually be organized within 3–6 weeks.

Is it worth opening a retail store

Is it worth opening a retail store?

Opening a retail store makes sense if you understand who your customers are, where they are located, and how many sales are needed to cover fixed expenses. It is better to check this before signing a long-term lease and making a large initial purchase of goods.

There is no single typical markup for retail. Clothing, electronics, cosmetics, tools, and everyday goods have different gross margins, turnover rates, and write-off levels. For financial planning, use the actual purchase prices and planned retail prices of your own product range.

First, calculate the break-even point. If the store’s fixed expenses are 80,000 UAH per month and the gross margin after the purchase cost of goods is 35%, you need approximately 229,000 UAH in monthly revenue to cover these expenses. Taxes, bank fees, product losses, and other variable expenses should be calculated separately.

Before choosing premises, check pedestrian traffic on several weekdays and a weekend, competitors within a 5–10-minute walk, entrance visibility, parking availability, and whether the area matches your target customer. For seasonal goods, separately estimate sales during low-demand months.

How much money is needed to start

The startup budget for a small non-food store with an area of 20–50 m² should be calculated separately for the premises, goods, equipment, and working capital reserve. The model below is a planning estimate, not an average market price.

Expense item	Estimated budget	What it depends on
First month’s rent and deposit	20,000–60,000 UAH	City, district, area, traffic, lease terms
Cosmetic renovation and lighting	40,000–150,000 UAH	Condition of the premises and store format
Racks, counters, furniture	25,000–100,000 UAH	Area and product display method
Signage and navigation	8,000–25,000 UAH	Size, construction, approvals
Checkout and inventory equipment	20,000–60,000 UAH	Computer, scanner, printers, cash drawer, backup power supply
Initial batch of goods	120,000–350,000 UAH	Category, number of items, purchase price
Advertising launch	10,000–30,000 UAH	City and customer acquisition channels
Cash reserve	50,000–150,000 UAH	Rent, salaries, and stock replenishment until sales stabilize
Total	approximately 300,000–900,000 UAH	The greatest impact comes from inventory and the condition of the premises

Do not spend all available capital on renovation and the first purchase. The store needs money to replenish fast-moving items, pay salaries, rent, taxes, and utility costs during the first few months.

Step 1. Business registration

Sole Proprietorship or LLC

For a store with one owner, a Sole Proprietorship is usually sufficient. Registration is simpler, accounting and reporting depend on the chosen taxation system, and the entrepreneur operates in their own name.

An LLC should be considered if there are several founders, ownership shares need to be legally distributed, an investor is expected, or a separate legal entity structure is required. An LLC can also use the simplified taxation system if the relevant conditions are met.

Which single tax group to choose

Parameter	Group 2 Sole Proprietorship	Group 3 Sole Proprietorship
Annual income limit	7,211,598 UAH	10,091,049 UAH
Single tax	up to 1,729.40 UAH per month	5% of income without VAT or 3% + VAT
Military levy	864.70 UAH per month	1% of income
Minimum Unified Social Contribution	1,902.34 UAH per month	1,902.34 UAH per month
Employees	up to 10 simultaneously	the number is not limited by the group conditions

Group 2 is suitable for many small stores with predictable turnover. The local council may set the single tax rate below the maximum.

Group 3 provides a higher income limit, does not limit the number of employees under the group conditions, and allows operation at a rate of 3% with VAT or 5% without VAT. The regime should be selected based on expected turnover, product range, and customer structure.

Which KVED codes are required

Retail trade uses codes from KVED Section 47. The specific code depends on what the store sells.

47.19 is used for other retail sale in non-specialized stores.
For a specialized store, choose the code corresponding to the relevant product group; separate codes are provided for clothing, footwear, electronics, books, cosmetics, and other categories.
47.91 is added if goods are also sold online.

The main KVED code should correspond to the principal business activity. Additional codes should be registered immediately for the sales channels and product groups you actually plan to use. NACE 2.1-UA will be introduced from January 1, 2027, so the current classifier should be checked before registering a new business.

How to submit documents

A Sole Proprietorship can be registered through the Diia portal. Personal data, a tax identification number, and an electronic signature are required. Completing the application takes about 10 minutes, and the automatic registration itself is free of charge.

An LLC based on the model charter can also be registered through Diia. The system generates the application, charter, founder’s decision or meeting minutes, and the ownership structure document.

Step 2. Permits and licences

A regular non-food store usually does not require a separate retail licence. Additional requirements arise when selling a regulated product range.

Product range	What to check before purchasing
Regular non-food goods	Supplier documents, labelling, and conformity documents for categories where they are required
Alcohol	Retail licence, ECR/pECR requirements, and excise accounting
Tobacco and liquids for electronic cigarettes	Separate licence and rules for selling excisable goods
Food products	Registration of the food market operator’s facility; additional permits for certain activities
Medicines	Specialized licence and specific requirements for the premises and staff
Jewellery	Special inventory accounting rules and requirements for products made of precious metals

A retail alcohol licence for most points of sale costs 3,242.63 UAH per quarter for each ECR or pECR registered at the address. For retail sales of tobacco products, the standard rate is 756.61 UAH per quarter per point of sale. Lower rates apply to villages and settlements defined by law.

If you plan to sell excisable, food, medical, or other regulated goods, the required permits must be obtained before the relevant type of trade begins.

Step 3. Premises

Location affects sales more than additional square meters. For a first store, 20–50 m² is often sufficient if there is enough space for goods, the checkout, aisles, fitting or consultation, and a small stock reserve.

Before signing a lease agreement, check:

the exact address and details of the premises owner;
whether the premises may be used for your type of trade;
electrical capacity, heating, water supply, and restroom facilities if required;
conditions for installing exterior signage;
the cost of utilities and operating charges;
the amount of the deposit and the conditions for its return;
the agreement term, rent indexation, and early termination conditions;
who is responsible for repairs, fire safety, and engineering systems.

Once the business premises are established, Form 20-OPP must be submitted to the tax authorities. The deadline is 10 business days after the facility is registered, created, or opened.

Fire safety documents should also be checked separately. If the owner has already registered a declaration confirming that the material and technical facilities comply with fire safety requirements for this property, the tenant may not need to submit it again under the conditions established by law.

Step 4. Checkout and fiscalization

Group 2, 3, and 4 Sole Proprietorships, as well as Sole Proprietorships under the general taxation system, use an ECR or pECR for settlement transactions. These include cash payments, bank card payments, POS terminal payments, and online acquiring.

An ECR is a hardware fiscal device. A pECR operates as software on a computer, tablet, or another compatible device. In both cases, a fiscal receipt is generated for the customer.

A bank POS terminal and an ECR perform different functions. The terminal accepts the card payment, while the ECR or pECR registers the settlement transaction for tax purposes.

If the customer transfers money directly to the account using IBAN details without using a card or payment service, different ECR rules apply to such a transaction. It is better to determine the payment acceptance methods before launching the checkout.

Checkout launch sequence:

Submit store information using Form 20-OPP.
Obtain electronic signatures for the persons who will work with the pECR.
Register the ECR or pECR.
Configure the checkout, taxes, payment methods, and products.
Test a sale, return, shift opening, and shift closing.
Train the salesperson to issue a paper or electronic fiscal receipt.

If a pECR is connected to Torgsoft, the cashier processes the sale in the inventory system and performs the fiscal transaction according to the pECR settings. This links the product sale with the inventory document and fiscal receipt.

Failure to use an ECR and failure to issue a fiscal receipt are subject to a financial penalty of 100% of the value of the goods sold in violation for the first offence and 150% for subsequent offences.

Step 5. Retail outlet equipment

A basic retail workstation consists of a checkout computer, barcode scanner, and fiscalization solution. The rest of the equipment depends on the product range and operating process.

LEABON LB-W7 J4125 15.6'' 8/128 touchscreen all-in-one can be used as a cashier workstation when a compact checkout computer is required.
Netum NT-W3 scanner with stand reads manufacturer barcodes and barcodes printed by the store, reducing manual entry of product codes.
Gprinter GA-E250 USB + RS-232 + Ethernet receipt printer is needed if the store prints paper receipts or other checkout documents.
Xprinter XP-420B label printer is needed for goods without a suitable manufacturer barcode, as well as for custom labels and price tags.
ASAP POS 410E cash drawer is used at the checkout when working with cash.

A store may also need a bank terminal, router, backup power supply, scales, data collection terminal, or an additional printer. The need depends on specific operations.

Before purchasing, check the compatibility of the models with Torgsoft, the operating system, and other devices at the checkout workstation. This is particularly important for scales, fiscal devices, bank terminals, and specialized printers.

Step 6. Inventory and cash management

Goods must be recorded in inventory before sales begin. Opening balances are created for the existing product range, while subsequent deliveries are recorded as goods receipts from a specific supplier.

In Torgsoft, goods receipt is used to record products in inventory at a store or warehouse. For each item, the name, quantity, purchase price, retail price, and other required characteristics are stored.

Daily inventory management should reflect at least:

goods receipt;
sale;
customer return;
return to supplier;
write-off;
transfer between storage locations, if there are several;
inventory count.

A minimum stock level is set for fast-moving goods. When the actual quantity approaches the specified limit, the product can be included in a supplier order. This makes purchasing decisions based on actual stock data.

Carry out a full inventory count before opening. After launch, it is useful to regularly recount the most expensive and fast-moving product groups and periodically perform a full inventory count.

Separately check the statutory requirement to maintain the inventory stock form. It depends on the taxation system, VAT registration, and product range. Special requirements apply, in particular, to technically complex goods under warranty, medicines and medical products, and jewellery.

Step 7. Suppliers and product range

A supplier should be evaluated based on the full economics of the delivery. Important factors include the purchase price, delivery time, minimum order quantity, payment terms, documents, and the procedure for handling defective goods.

Before placing the first order, clarify:

which documents the supplier provides with the goods;
the minimum order amount or quantity;
who pays for delivery;
how many days stock replenishment takes;
how often purchase prices change;
whether deferred payment is available;
how defective goods and incorrect deliveries are returned;
which documents confirming the origin or conformity of goods are provided.

For the first purchase, it is better to obtain a sufficient number of product items to test demand and keep part of the capital available for repeat orders. A large stock of slow-moving goods ties up money and increases the need for storage space.

After several sales cycles, adjust the product range based on actual demand: which items sell regularly, how many days they remain in stock, what margin is retained, and how quickly the supplier can replenish them.

Step 8. Staff

For a small store operating one shift, the owner can work independently or hire one salesperson. For stable two-shift operation, you should plan for at least two employees and replacement coverage during holidays and sick leave.

According to job vacancy data, the benchmark salary for a sales consultant is around 22,500 UAH per month across Ukraine and around 28,600 UAH in Kyiv. The actual salary depends on the city, work schedule, product range, financial responsibility, and incentive system.

Before an employee actually starts work, the employer issues an employment order and submits an employment notification to the State Tax Service. The employee may begin performing their duties after proper formalization.

Before the first shift, define:

who may process sales and returns;
who has the right to change prices;
what manual discount the salesperson may provide;
who performs write-offs and inventory counts;
how the cash register is handed over between shifts;
who has access to purchase prices and financial reports.

In Torgsoft, the administrator can configure access rights, while the manager can use activity logs and protocols to review employee operations. Access rights should be configured before the salesperson’s first working day.

Step 9. Launch and first sales

One week before opening, the store should operate in test mode. Perform a test sale from scanning the product through payment and issuing the fiscal receipt.

Check the prices and barcodes of all goods.
Carry out a control inventory count.
Test cash and card payments.
Practise a product return.
Check opening and closing the checkout shift.
Check how the checkout workstation behaves if the Internet connection or power supply is lost.
Create a test supplier order.
Prepare rules for receiving goods and handling defective items.
Add the store to the company profile on Google and verify the address, phone number, and opening hours.
Inform your existing audience about the opening date and product range.

During the first few weeks, track the number of receipts, average transaction value, revenue, gross margin, stock levels of fast-moving items, products without sales, and reasons for returns. This data will show which purchases should be increased and which should be reduced.

Common mistakes at launch

Renting without checking traffic. Attractive premises do not compensate for the absence of the right customers. Traffic should be measured before signing the agreement.
The entire budget is spent before opening. The store needs a reserve for rent, salaries, taxes, and repeat purchases.
The first purchase is too large. Without sales history, it is difficult to determine which products require deeper stock.
Product movements are recorded only partially. If goods receipts, returns, or write-offs are not recorded, the inventory balance stops matching the actual stock.
The checkout is configured on opening day. Fiscalization errors delay sales and create the risk of penalties.
Employees have excessive access rights. A salesperson should only be granted the operations required for their work.
Supplier terms are not documented. Problems with defects, returns, delivery times, and price changes begin after the first non-standard delivery.

Opening checklist

Define the product niche and target customer.
Calculate gross margin and the break-even point.
Prepare a startup budget and cash reserve.
Check several potential locations.
Choose the business form: Sole Proprietorship or LLC.
Choose the taxation system.
Register the required KVED codes.
Register the business.
Sign the lease agreement after a legal and technical review of the premises.
Submit Form 20-OPP.
Check whether a fire safety declaration is required.
Obtain licences and permits if the product range is regulated.
Register an ECR or pECR.
Arrange cashless payments.
Purchase and configure checkout equipment.
Sign agreements with suppliers.
Create the product directory and record the opening stock.
Label goods without a suitable manufacturer barcode.
Carry out a full inventory count.
Formally employ staff and submit the notification to the State Tax Service.
Configure access rights.
Test sales, returns, payments, and the fiscal receipt.
Create a backup scenario for Internet or power outages.
Run a test working day.
Open the store and monitor sales, money, and stock balances daily.

Questions and answers

? How much does it cost to open a small retail store?

For a store with an area of 20–50 m², you can budget approximately 300,000–900,000 UAH. The initial inventory, condition of the premises, and cost of retail equipment have the greatest impact on the budget.

? How long does it take to open a store?

If the premises are ready and the goods do not require special licences, a practical timeframe is approximately 3–6 weeks. Renovation, custom furniture production, and obtaining special permits may extend this period.

? Which Sole Proprietorship tax group is suitable for a store?

For a small retail store, Group 2 or Group 3 is often considered. The choice depends on expected income, the number of employees, VAT, and other business operations.

? Is an ECR or pECR required?

Group 2, 3, and 4 Sole Proprietorships and Sole Proprietorships under the general taxation system use an ECR or pECR for settlement transactions. Separate rules apply to payments made directly using IBAN details.

? Can you operate without hiring a salesperson?

Yes. A Sole Proprietorship owner can work in the store independently. The need for employees depends on the opening hours, customer flow, goods receiving, and the need for staff replacement.

? Does a regular store need a licence?

For most regular non-food goods, a separate retail licence is not required. Alcohol, tobacco, medicines, and certain other categories are subject to special rules.

? Which KVED code should you choose?

The code should be selected according to the actual product range. Code 47.19 is used for non-specialized retail trade, specialized stores have separate codes for different product groups, and 47.91 is added for online sales.

? Do you need to keep records of all goods?

To manage a store, you need to know the actual stock balance of each item regardless of tax requirements. A separate statutory obligation to maintain the inventory stock form depends on the Sole Proprietorship’s status and the product category.

? Where should you start with automation?

Before purchasing equipment, test your own workflow: creating a product, receiving the first batch, printing a label, making cash and card sales, issuing a fiscal receipt, processing a return, performing an inventory count, and creating the next supplier order. The Torgsoft demo version works for 30 days. Checkout equipment, scanners, printers, and other devices are available in the retail equipment section.

Amounts, rates, limits, and requirements are stated as of August 2026. Tax legislation changes: before registering and submitting documents, check the current values on the State Tax Service website.