The liberalization of establishing a business activity in Ukraine (Legal basis)

Volodymyr Machuskyy

The legal basis for the liberalization of establishing a business activity in Ukraine are caused by two determining factors: 

1) the principles of the domestic policy of Ukraine; 

2) the duty of the Ukrainian state in accordance with the Agreement on Association between Ukraine and the European Union.

According to Art. 7 of the Law of Ukraine “On the principles of domestic and foreign policy” of 01.07.2010., the creation of favorable conditions for businesses, simplifying business start-up and the termination of a business, reducing state intervention in economic activities of business entities, simplification of getting permits, reducing pressure on business by regulatory bodies is one of the basic principles of domestic policy Ukrainian state in the economic sphere.

The basic principle of domestic policy of Ukraine in the context of simplifying of establishment a business is implemented through the Law of Ukraine “On state registration of legal entities, natural persons - entrepreneurs and social formations” on 15.05.2003. (Hereinafter the Act). About 70 amendments were made to the Act during its existence.

As an example, take the creation and launch of a limited liability company in Ukraine (hereinafter the LLC). In this sense, the provisions of the Act, aimed at starting a LLC, characterized by the following factors:

1) the state registration of LLC carried out by application principle;

2) the documents for the state registration of LLC may be submitted electronically through the portal of electronic services;

3) the term of consideration of documents submitted for registration LLC is 24 hours;

4) LLC can to act on the basis of a typical model statute;

5) During of the state registration LLC can choose a simplified form of taxation.

In addition, the legislation of Ukraine provides the creation of LLC by one founder - art. 140 of the Civil Code of Ukraine and does not contain requirements for the statutory capital of LLC - Art. 144 of the Civil Code of Ukraine.

Thus, the legislation of Ukraine contains general provisions aimed at liberalizing of establishing a business activity.