Legislative innovations in business registration or how to open your own business without communicating with the officials (Ukraine)

Igor Alekseev

MP of Ukraine, Adviser to the Minister of Justice of Ukraine

In late November 2015 Parliament updated the legal basis of registration of entrepreneurs and companies. New legislation embracing diverse initiatives, like those already successfully proven in practice and innovation, which has long needed a business environment.

More than 7 thousand Notaries were given simultaneously register of legal entities and individual entrepreneurs. This is due to the fact that Ukraine has registered more than 2 million businesses and over 1 million companies. But many civil registrars insufficient to service the business. Therefore queue and red tape - typical synonyms government services. 

Expanding the range of subjects that provide registration services, will address these shortcomings without expenses from the state budget. And as notaries already have experience in real estate and registrar functions and they have necessary material base. Entry notaries new powers will without any delay. In addition, the involvement of private actors (and hence competition in the area of ​​registration) - is an effective way of combating domestic corruption.

The Ministry of Justice will not conduct state business registration. These powers will be transferred to local authorities, and therefore - centralization and monopolization of the sphere will remain in the past.

The adoption documents and state registration will take place on the principle of extraterritoriality. Simply put, it becomes possible to appeal to any state registrar within the territory of Ukraine, regardless of location or residence of the applicant.

Another positive aspect of the new legislation - greatly simplified the procedure for starting a business. First, unlike many countries, the initial registration of enterprises in Ukraine is free. Second, the new law "On state registration of legal entities, individual entrepreneurs and community groups" introduced clear and understandable procedures, significantly reduced the list of documents submitted for state registration, including through receiving them electronically from public bodies . Already there are conditions for business registration online, and e-interdepartmental interaction when registrars transmit information to other state bodies and vice versa.

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