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General principles of legal
regulation of business located in Chapter 4 of the Economic Code of
Ukraine.
So, the entrepreneurship, to
be understood as a separate, initiative, systematic, own-risk economic
activity, carried out by business entities (entrepreneurs) with the purpose of
achieving economic and social results, and generating profit.
Entrepreneurs shall have the right to perform
independently without any limitations any such entrepreneurial activity that is
not banned by the law.
Peculiarities of performing certain types of
entrepreneurship shall be established by legislative acts.
The list of types of entrepreneurial activity
subject to licensing, as well as the list of activities, wherein
entrepreneurship is banned shall be established exclusively by the law.
Entrepreneurial activity of officials of state
authorities and local governments shall be restricted by the law in cases,
provided by part two, Article 64 of the Constitution of Ukraine.
Entrepreneurship shall be conducted on the
basis of:
Free choice by the entrepreneur of a type of
entrepreneurial activity;
Independent development by the entrepreneur of
his/her activity program, selection of suppliers and consumers of products
manufactured, employment of material and technical, financial and other
resources, the use of which is not limited by the law, fixing of prices for
products and
Services in compliance with the law;
Free employment of personnel by the
entrepreneur;
Commercial calculation and own commercial risk;
Free disposal of retained profit, left after
payment of taxes, fees and other payments, envisaged by the law;
Independent performing by the entrepreneur of foreign
economic activity; the use by the entrepreneur of an international currency
share of proceeds at his/her own discretion.
The state shall guarantee to all entrepreneurs
irrespective of their organizational forms of entrepreneurial activity, equal
rights and opportunities for attraction and use of material and technical,
financial, labor, informational, natural and other resources.
Providing the entrepreneur with material and technical
and other resources distributed by the state, shall be conducted for the
purpose of carrying out by the entrepreneur of supplies, works or services for
the state needs.
The state shall guarantee the inviolability of
property and ensure protection of property rights of the entrepreneur.
Withdrawal by the state or local governments of fixed and operating assets, as
well as other property shall be allowed according to Article 41 of the
Constitution of Ukraine on the grounds and in keeping with the procedure,
established by the law.
Losses suffered by the entrepreneur in the
result of violation by individuals or legal entities, state authorities or
local governments of his/her property rights, shall be reimbursed to the
entrepreneur pursuant to the Economic Code of Ukraine and other laws.
The entrepreneur or an individual employed by
the former in cases envisaged by legislation may in working hours be attracted
to fulfillment of state or public duties, with following compensation to the
entrepreneur of relevant losses by the authority that takes such decision. Any
such disputes as may arise on compensation of losses shall be resolved in the
court.
In order to ensure favorable organizational and
economic conditions for the development of entrepreneurship, state authorities
on conditions and in keeping with the established procedure shall:
Provide entrepreneurs with land parcels, state
property, required for conducting entrepreneurial activity;
Facilitate in material and technical supplies
of entrepreneurs, informational servicing of their activities and training
their personnel;
Conduct primary equipment of undeveloped
territories with objects of production and social infrastructure, by means of
sales or other transfer of those to entrepreneurs as established by the law;
Stimulate modernization of technologies,
innovation activity, development of new kinds of products and services by
entrepreneurs;
Provide such other assistance to entrepreneurs.
The state shall foster the development of small
entrepreneurship, secure necessary conditions for this.
Entrepreneurs shall be obligated not to cause
damage to the environment, not to violate rights and lawful interests of
individuals and their associations, other business entities, institutions,
organizations, rights of local governments and the state.
The entrepreneur shall suffer property and
other liability as established by the law for caused losses and damage.
Peculiarities of carrying out entrepreneurial
activity within the territory of Ukraine, on its continental shelf and in the
exclusive (sea) economic zone by foreign legal entities and individuals shall
be established by Economic Code of Ukraine and other laws of Ukraine.
Should a current international treaty, approved
by the Verkhovna Rada of Ukraine provide for other rules of entrepreneurship,
different to those established by Ukrainian legislation, the rules of the
international treaty shall apply. The rules of international treaties of
Ukraine, effective at the moment of adoption of the Constitution of Ukraine
shall apply in accordance with the Constitution of Ukraine in keeping with the
procedure established by these international treaties.
Entrepreneurial activity shall be terminated:
On entrepreneur’s own initiative;
In the event of expiry of the license;
In the event of discontinuance of existence of
the entrepreneur;
On the ground of a court judgment in cases
envisaged by the Economic Code of Ukraine and other laws.
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