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Aspects of business function of the legal entities

The Verkhovna Rada of Ukraine (Ukrainian legislative body) adopted a law that simplified certain aspects of registration and function of the legal entities.

We exercise the judgment that the adoption of the abovementioned law is a positive development. At the same time, it must be taken into account that such legislative changes will add a piece of work to the attorneys-at-law in commercial matters. Thus, as usual in the law enforcement practice, initially, it will be a lot of mistakes and different opinions concerning the same procedures.

On April 14, 2014, was adopted the law of Ukraine "On amendments to certain legislative acts of Ukraine on simplifying enterprise startup procedure". The abovementioned act abolished the payment of the registration fee and established a mechanism for registration of the legal entities and individual entrepreneurs by filing electronic documents without the mandatory use of an electronic digital signature. The most important and significant innovation of the law is the abolishment of the obligatory usage of the seal by the business entity.

In addition, the law introduced changes as follows:

  • institution of the possibility to return the state fee for the registration of a legal entity or an entrepreneur in case of refusal to register a new business;
  • electronic digital signature has become a discretional element of the electronic document;
  • abolishment of the requirement to certify the electronic document with the electronic signature;
  • increase of the fee for registration of the changes regarding the place of the residence or the name of the individual entrepreneur.

Changes also affect the current function of many business entities. Thus, since they made the usage of the seal discretional, closing of the deals or conclusion of any contracts has become easier. A number of documents related to the legal entity could be issued without the seal, for example, a power of attorney.

Changes will come into force six months after the publication of the law.

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