CCU stands for the Customs Code of Ukraine, the main codified act that regulates customs affairs in Ukraine. The full title of the document is the Customs Code of Ukraine dated March 13, 2012, ...
06Oct
What Article 164 of the Code of Ukraine on Administrative Offenses Entails in Simple Terms
Article 164 of the Code of Ukraine on Administrative Offenses (CUAO) establishes administrative liability for violating the procedure of conducting business activities. Primarily, it concerns doing business without proper state registration, necessary licenses, permits, or mandatory notifications about the start of activity.
The current text is contained in the Code of Ukraine on Administrative Offenses. The article covers not only operating without formalizing as an individual entrepreneur or legal entity but also a range of violations related to licensing, permitting, and special regulations.
What Can Lead to Liability Under Article 164
Most often, Article 164 CUAAO is applied when a person effectively conducts entrepreneurial activity but has not formalized it according to the law. However, the scope of the article is much broader.
Specifically, it includes:
- conducting business activities without state registration;
- operating without the mandatory notification of the start of activity;
- functioning without a license if the relevant type of activity is subject to licensing;
- working during the suspension of a license in cases where the law does not permit this;
- carrying out activities without the necessary permit document;
- submission of false information regarding material and technical base;
- violations of certain rules on movement, storage, or sale of fuel and ethyl alcohol;
- failure to notify the licensing authority about changes within the prescribed time frames;
- non-compliance with an order to eliminate violations of licensing conditions;
- submission of incomplete or false information in the notification about the start of business activity.
Therefore, Article 164 of the Code of Ukraine on Administrative Offenses should not be perceived solely as a “fine for operating without entrepreneur registration.” Each case requires determining which specific legal requirement was violated.
What Fine Does Article 164 CUAAO Impose
For the basic offense, the fine ranges from 1000 to 2000 non-taxable minimum incomes of citizens (NTMIC). One NTMIC equals 17 UAH, which means a fine of from 17,000 to 34,000 UAH in monetary terms. Confiscation of products, production tools, raw materials, and money obtained as a result of the offense is also possible.
If a similar violation is committed repeatedly within one year or associated with receiving income in large amounts, the penalties increase significantly:
- The fine ranges from 2000 to 5000 NTMIC — from 34,000 to 85,000 UAH.
- Confiscation of produced goods, production tools, raw materials, and money obtained from the offense applies.
For other parts of the article, separate fines are provided. For example, for violating the deadline to notify the licensing authority about changes — from 250 to 500 NTMIC, i.e., from 4,250 to 8,500 UAH; and for failing to comply with an order to eliminate licensing violations — from 500 to 1500 NTMIC, i.e., from 8,500 to 25,500 UAH.
What Does “Income in Large Amounts” Mean
Here is an important legal detail. Article 164 CUAAO commentary is often mistakenly reduced to simply multiplying 1000 by 17 UAH. This is incorrect for qualifying the offense.
A note to the article defines a large amount as income exceeding the non-taxable minimum by 1000 or more times. Meanwhile, the Tax Code states that for qualifying administrative offenses, the size of the tax social benefit is used. In 2026, the basic tax social benefit is 1664 UAH, so the relevant threshold is 1,664,000 UAH. However, for calculating the fine itself, 17 UAH per NTMIC is applied.
Is One Sale Enough for Article 164 CUAAO
Not every single sale of an item automatically means illegal entrepreneurial activity. The authority drawing up the protocol and the court must evaluate the actual circumstances: nature of the activity, its repetitiveness, independence, income intent, and other evidence.
An illustrative case is the decision of the Zboriv District Court of Ternopil region dated June 2, 2026. The court terminated proceedings under part 1 of Article 164 CUAAO, as the materials did not confirm systematic activity. At the same time, this decision applies to the particular circumstances of the specific case and does not by itself mean that any one-time operation always excludes liability.
That is why part 1 Article 164 CUAAO commentary should be read alongside the evidence in the case, not just the protocol text.
Who Hears Cases Under Article 164 CUAAO
Cases under Article 164 are heard by district, district in city, city, or city district courts. The fact of drawing up a protocol does not yet mean that the person is recognized as guilty. The decision to impose an administrative penalty is made by the court.
Protocols can be drawn up by persons authorized by law depending on the type of violation found. The document must specify the place, time, and essence of the violation, the legal norm, the person’s explanations, and other necessary information.
Rights of a Person Against Whom a Protocol Was Drawn Up
The protocol should be carefully read before signing. The person is not deprived of the right to dispute the circumstances reflected in it.
Specifically, the person has the right to:
- review the case materials;
- provide explanations and evidence;
- submit petitions;
- use legal assistance from a lawyer;
- make remarks on the protocol;
- appeal the decision in the case.
If the person disagrees with the protocol, it is advisable to explicitly state objections or submit them separately. Refusal to sign does not invalidate the protocol — the official will simply record this fact.
What to Check After the Protocol is Drawn Up
The protocol itself should not replace evidence. For liability, actual circumstances of the violation must be established and confirmed with appropriate materials.
Practically, it is advisable to act as follows:
- Check which part of Article 164 CUAAO is indicated in the protocol.
- Find out which specific legal requirement is allegedly violated.
- Verify the date, place, event description, and other factual data.
- Provide your explanations, documents, contracts, licenses, permits, extracts, or other evidence.
- If necessary, submit petitions and use the assistance of a lawyer.
This is especially important when the dispute concerns whether the activity was actually business-related, whether a license or permit was required, and whether the actions were systematic.
Limitation Period for Liability
Since cases under Article 164 CUAAO are heard by the court, the general rule of Article 38 CUAAO establishes a limitation period of up to three months from the date of the offense. If the violation is continuous, then up to three months from the day it is detected. For certain categories of cases, the law may establish special rules.
Therefore, the date of the event and the nature of the violation have practical significance and must be checked separately in each case.
Frequently Asked Questions About Article 164 CUAAO
It is liability for conducting business with violations of the established legal procedure — for example, without state registration, necessary license, permit, or mandatory notification.
If actions fall under part 1 of Article 164 CUAAO, the fine ranges from 17,000 to 34,000 UAH. The law also permits confiscation of products, raw materials, production tools, and received money.
Yes. Part one provides for the possibility of confiscation, and with repeated violation within a year or income in large amounts, the article provides for confiscation along with a significantly larger fine.
No. The protocol records circumstances the authorized person considers an offense. The case under Article 164 CUAAO is heard by a court, which examines evidence and decides on the presence of an administrative offense.
Yes. The person subject to administrative liability has the right to appeal the decision in accordance with CUAAO procedures. If the case has significant financial consequences, possible confiscation, or disputes about the qualification of activity, the legal position should be formed taking into account materials of the specific case.
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