Business and jobs > Setting up a business

Laws around Office Space Rental and Private Entrepreneurship

(1/2) > >>

americaninkiev:
Hi Everyone,

This is my first time posting.  Thank you for allowing me to be here.

I am setting up a small IT development shop in Kiev Ukraine and I'm looking to get some straight facts around office rental.

Based on my understanding, both commercially and residentially zone areas can be leased as office space (according to a few https://kievintlrealty.com/office-prices-kiev). 


If the a Private Entrepreneur leases the office, will that individual have to sub lease the office to the other private entrepreneurs that are working there?

Or do you just pay in cash and avoid the headache entirely?

AkMike:
If you're trying to illegally avoid paying taxes call a lawyer.

steveo:

--- Quote from: americaninkiev on 22:24 02-Feb-2019 ---
Based on my understanding, both commercially and residentially zone areas can be leased as office space (according to a few https://kievintlrealty.com/office-prices-kiev). 


If the a Private Entrepreneur leases the office, will that individual have to sub lease the office to the other private entrepreneurs that are working there?


--- End quote ---

The Real Estate companies might tell you can lease a residential zoned space for an office, but the actual legality of that move may be a little more complex. Certain businesses may be allowed to operate in a residential zone, others may not.

You don't need to sub-lease to other FOPs (private entrepreneurs), unless you choose to, and your lease agreement allows it (and if you choose to follow your agreement). Most rental agreements specify that you cannot sub-lease, which is a real pain for small businesses looking to rent less than 100 sq. metres.


Pen Writer:
The idea and aim behind this sub-lease are obvious. But it is not enough to sub-lease the space to other private entrepreneurs because when the tax inspection comes (which can happen easily as the ban for inspections of small business has expired) having sub-lease agreements might not be enough because they do not explain:
- who the furniture belongs to?
- who all office equipment belongs to?
- why all of those private entrepreneurs work on the same project?
- who all of those private entrepreneurs have the same clients, especially if the client sits at the same office?
- why payment terms or/and payment pattern is the same for all of these private entrepreneurs?
- etc.
The bottom line, this scheme can be easily broken and these private entrepreneurs can be acknowledged as employees.

Danno99:
Somewhat related topic or question-

 How does the trend of buying ground floor apartments for conversion into mom and pop retail stores work. I notice they often jettison out, do they pay the city for this area?

-How does the placement of Sharma, coffee and other little Kiosks work, do you rent the sidewalk space from the city?

-It would seem like buying a few ground floor apartments on busy streets where such conversions are going on might have future value, even if it were just rented as an apartment until?

-I wonder if, after the fall of the USSR, some people got away with building on these otherwise, not-private property spots and squatted their way into possession? Because it seems so haphazard. I have been told that people can just place little garage structures with no problem.

Navigation

[0] Message Index

[#] Next page

Go to full version