Author Topic: Laws around Office Space Rental and Private Entrepreneurship  (Read 4259 times)

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Offline americaninkiev

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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?


Offline AkMike

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If you're trying to illegally avoid paying taxes call a lawyer.
In Russia we only had two TV channels. Channel One was propaganda. Channel Two consisted of a KGB officer telling you: Turn back at once to Channel One. Yakov Smirnoff

Offline steveo

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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?


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.


Keep calm and let karma do its thing.

Offline Pen Writer

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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.

Offline Danno99

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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.
Montaigne's axiom: "Nothing is so firmly believed as what we least know."

Offline UKUA

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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.

Yes, my wife's best Odessa friend sold her one bedroom ground floor city-centre apartment when she was made an offer she couldn't refuse! She was able to move into a much quieter 2 bedroom apartment and still have funds left over to completely renovate her village house (dacha) and have cash remaining to bolster her crappy state pension for nearly 50 years teaching physics. She still works part time at the school at 74 years of age.

As ever, location, location, location decides the value.

Offline Danno99

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From the sound of it, they are considerably higher value than the same apartment one or two floors up.



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.

Yes, my wife's best Odessa friend sold her one bedroom ground floor city-centre apartment when she was made an offer she couldn't refuse! She was able to move into a much quieter 2 bedroom apartment and still have funds left over to completely renovate her village house (dacha) and have cash remaining to bolster her crappy state pension for nearly 50 years teaching physics. She still works part time at the school at 74 years of age.

As ever, location, location, location decides the value.
Montaigne's axiom: "Nothing is so firmly believed as what we least know."

Offline UKUA

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From the sound of it, they are considerably higher value than the same apartment one or two floors up.


For sure, if future retail potential exists. However, you will find many of the better properties, those strategically placed in the centre or close by, especially close to tourist attractions, will have already been developed.

Offline Tnic

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From the sound of it, they are considerably higher value than the same apartment one or two floors up.


For sure, if future retail potential exists. However, you will find many of the better properties, those strategically placed in the centre or close by, especially close to tourist attractions, will have already been developed.

Or have a very unique or in demand offering that will draw customers off the beaten trail.  Like TexMex BBQ did in Lviv.  On a one way back street near the action and packed every night.

RIP Chef Mike.
The only way to stop evil men is good men who are skilled at violence.

Offline Ted

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From the sound of it, they are considerably higher value than the same apartment one or two floors up.


For sure, if future retail potential exists. However, you will find many of the better properties, those strategically placed in the centre or close by, especially close to tourist attractions, will have already been developed.

Or have a very unique or in demand offering that will draw customers off the beaten trail.  Like TexMex BBQ did in Lviv.  On a one way back street near the action and packed every night.

RIP Chef Mike.

Porky's Salo and Beer Emporium   ?