Purchase and sale of FOP securities

Investing in securities is an important tool for entrepreneurs who want to diversify their assets and receive additional income. In Ukraine , natural persons-entrepreneurs (FOP) can buy securities, but for this they need to follow certain rules and procedures . In this article, we will look at the steps that a FPO must go through in order to successfully invest in securities.

Determination of the purpose of investment . Before you start investing, it's important to define the goals you want to achieve. For example, do you want to generate regular passive income, or perhaps plan to invest for the long term? The choice of specific investment tools and strategies will depend on this.

Update of KVED . Make sure that the list of activities of your FOP includes investment activities. This may require updating your KVEDs to include investments and financial activities. Usually, KVED code 64.99 "Provision of other financial services (except insurance and pension provision)" is suitable for this. I would like to draw your attention to the fact that when updating this financial KVED, the FOP loses the status of a single tax payer .

Choosing a broker . In order to buy securities, the FOP must open an account with a broker, who acts as an intermediary between the investor and the stock market. The choice of a broker depends on several factors:

• Reputation and Reliability : Research the reviews of other customers and the rating of the broker.
• Commission Fees : Compare commissions charged by a broker for services.
• Access to markets : Make sure the broker provides access to the markets and instruments you are interested in.

Account opening and preparation of documents. After choosing a broker, you need to open a brokerage account. For this, you will need the following documents:

• Passport and identification code.
• Extract from the Unified State Register (USR).

Analysis and selection of securities . After opening an account, you can start analyzing the market and choosing securities for investment. Different types of securities are available in Ukraine, in particular:

• Shares: shares in the capital of companies that give the right to part of the profit (dividends) and participation in general meetings of shareholders.
• Bonds : debt obligations that allow you to receive a fixed income in the form of interest.
• Investment certificates and funds : collective investment schemes that allow you to invest in a wide range of assets.

It is important to understand the risks associated with each type of investment and take them into account when forming a portfolio.

Purchase of securities . The process of buying securities involves submitting a purchase order through the broker's platform or application. Choose the securities you want to buy, specify the quantity and price. After confirmation of the transaction, the funds will be debited from your account and the securities will be credited to your account.

Accounting . The investment of the FOP in securities must be reflected in the accounting records. This includes accounting for investment income and paying taxes. It is recommended to cooperate with a professional accountant or lawyer, who will help to keep records and reports correctly .

Conclusion . Investing in securities can be a powerful tool for increasing the financial stability and growth of your business assets. By following the above steps, the FOP in Ukraine can successfully start this process. Do not forget that every investment is associated with a certain level of risk, so it is important to be careful and well-informed in your actions.

Templates that may be useful:

- Shareholder agreement (English), universal ;

- The contract for the purchase and sale of shares is simple, the loan is included in the price, the transfer of the share after payment, without the pledge of shares, universal English ;

- Shareholders' decision on the payment of dividends (English), universal .