Date of entry into
force:
April 19, 2012
(Abstract)
The Law determines the legal and economic grounds of state policy in the
sphere of support and development of small and medium business.
Article 3 of the Law determines the objective and principles of state
policy in the sphere of development of small and medium business in Ukraine.
According to Article 4 of the Law, the main directions of state policy in
the sphere of development of small and medium business in Ukraine are:
·
improving and simplifying the tax accounting
procedures;
·
implementing a simplified taxation, accounting and
reporting system for small business entities that satisfy the criteria
established by the tax legislation;
·
involving small business entities in scientific and
technical, and social and economic programs, and in supplying products (works,
services) for state and regional needs;
·
ensuring state financial support for small and medium
businesses by implementing state credit programs, providing guarantees on
credits, partially compensating loan interests, etc;
·
facilitating the development of the small and medium
business support infrastructure;
·
guaranteeing the rights of small and medium business
entities during state supervision (oversight) in the sphere of economic
activity;
·
facilitating simplification of permit procedures,
state supervision (oversight) procedures, procurement of permit documents for
small and business entities, and decreasing the duration of such procedures;
·
organizing for training, retraining and advanced
training of staff for small and medium business entities;
·
implementing mechanisms for facilitating and inciting
small and medium business entities to use innovative technologies and
quality-improving technologies in their production.
Development of small and medium business is provided for, within the scope
of their authority, by the Verkhovna Rada of Ukraine, the Cabinet of Ministers
of Ukraine, the specially authorized body in the sphere of development of small
and medium business, other central bodies of executive power, the Verkhovna
Rada of the Autonomous Republic of Crimea, the Council of Ministers of the
Autonomous Republic of Crimea, local state administrations, and bodies of local
self-government. The specially authorized body in the sphere of development of
small and medium business is the central body of executive power providing for
implementation of state policy in the sphere of development of business
(Article 5 of the Law). Articles 6-10 of the Law determine the authority of the
above bodies in the sphere of development of small and medium business.
According to Article 11 of the Law, consultative, advisory or other
auxiliary bodies in the sphere of development of small and medium business are
created with central, regional and local bodies of executive power.
Article 12 of the Law envisages that state support is granted to small and
medium business entities that satisfy the criteria established by part 3,
Article 55 of the Economic Code of Ukraine. State support entails creating
programs that determine the mechanism for such support. State support programs
are developed and implemented by the specially authorized body in the sphere of
development of small and medium business, with involvement of other central
bodies of executive power and civil organizations that represent the interests
of small and medium business entities. State support programs are approved by
the Cabinet of Ministers of Ukraine according to the procedure established by
law.
According to Article 13 of the Law, state support cannot be given to small
and medium business entities who:
·
are credit organizations, insurance organizations,
investment funds, non-state pension funds, professional stock market players,
or pawn brokers;
·
are not residents of Ukraine, except for cases
provided for by international agreements of Ukraine;
·
produce and/or sell weapons, alcohol or tobacco
products; or exchange currency;
·
lease immovable property as one of their main
activities;
·
have been declared bankrupt or had the bankruptcy
procedure initiated against them;
·
are in the state of termination of legal entity or
termination of business activity of a natural person – entrepreneur;
·
submitted knowingly false information and documents
when applying for state support;
·
have outstanding debts before the budget, the Pension
Fund of Ukraine, or funds of mandatory state social insurance;
·
received state support with violation of conditions of
such support, or violated the terms of use of the budget funds, which has been
proven according to the established procedure;
·
receive similar type of state support, which is still
effective.
The small and medium business support infrastructure are enterprises,
institutions and organizations of any form of ownership that carry out work
aimed at development of small and medium business entities and their investment
and innovation activity, and at promotion of their products (work, services)
and results of intellectual activity on the domestic and foreign markets.
Objects of the small and medium business support infrastructure include business
centers, business incubators, innovation business incubators, research and
technology centers, technology transfer centers, small business support funds,
leasing companies, consultation centers, and other enterprises, institutions
and organizations whose main objective is facilitating the development of small
and medium business. State support of objects of the small and medium business
support infrastructure is carried out in the scope of state, regional and local
programs for support of small and medium business development (Article 14 of
the Law).
According to Article 15 of the Law, state support for small and medium
business entities and objects of the small and medium business support
infrastructure includes financial, informational and consultative support,
including support in the sphere of innovations, science and industrial
production, supporting small and medium business entities that carry out export
activity, and support in the sphere of training, retraining and advanced
training for business and management stuff. The Verkhovna Rada of the
Autonomous Republic of Crimea and bodies of local self-government have the
right to provide other types of state support at the expense of local budgets,
in addition to the above types of state support.
According to Article 16 of the Law, financial state support is provided by
the specially authorized body in the sphere of development of small and medium
business, other bodies of executive power, the Verkhovna Rada of the Autonomous
Republic of Crimea, bodies of local self-government, the Ukrainian
Entrepreneurship Support Fund and other national funds, and regional and
national funds for entrepreneurship support. The main types of financial state support are:
·
partial compensation of interest on loans granted to
small and medium business entities for project implementation;
·
partial compensation of leasing payments, factoring
payments, and payments for use of guarantees;
·
providing guarantees and sureties for loans of small
and medium business entities;
·
granting loans, including microloans, for business
start-up and maintenance;
·
granting loans for acquisition and implementation of
new technologies;
·
compensating expenses on development of cooperation
between small and medium business entities and large companies;
·
financial support for implementing energy-saving and
environmentally safe technologies;
·
other types of financial state support not forbidden
by legislation.
The Ukrainian Entrepreneurship Support Fund, and other national, regional
and local funds for entrepreneurship support are legal entities. The procedure
for creation and operation of the Ukrainian Entrepreneurship Support Fund and
other national funds for entrepreneurship support is determined by the Cabinet
of Ministers of Ukraine. Founders of regional and local funds for
entrepreneurship support can be the Council of Ministers of the Autonomous
Republic of Crimea, local bodies of executive power, bodies of local
self-government, the Ukrainian Entrepreneurship Support Fund, other national
funds for entrepreneurship support, legal entities or natural persons. Funds
for entrepreneurship support are non-profit organizations whose main functions
are facilitating the implementation of state policy in the sphere of
development of small and medium business by attracting and efficiently using
financial resources, and financing target-oriented programs and projects.
Financial state support is carried out by funds according to Article 16 of the
Law. Resources of the Ukrainian Entrepreneurship Support Fund, and other
national, regional and local funds for entrepreneurship support are formed at
the expense of budget resources and voluntary contributions of natural persons
and legal entities, including foreign ones. Resources of the Ukrainian
Entrepreneurship Support Fund, and other national, regional and local funds for
entrepreneurship support are directed exclusively towards financing development
and support of small and medium business. The procedure for using such funds is
established by the Cabinet of Ministers of Ukraine (Article 17 of the Law).
Articles 18-20 and 22 of the Law, respectively, determine the terms for
providing informational and consultative state support for small and medium
business entities, as well as state support in the sphere of innovation,
science, industrial production, training, retraining and advanced training of
business and management staff.
Article 21 of the Law envisages state support for small and medium business
entities that carry out export activity, and determines the terms and
directions of such support.
State support for small and medium business entities in the sphere of
training, retraining and advanced training of business and management staff is
envisaged by Article 22 of the Law.
The Law also introduces appropriate amendments to Articles 55 and 63 of the
Economic Code of Ukraine. Furthermore, it envisages that the Law of Ukraine “On
State Support of Small Business” is declared ineffective.
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