Alert: New Changes in Registration Procedures

Alert: New Changes in Registration Procedures

Guide on the procedure for state registration of individual entrepreneurs and legal entities with due regard to the latest changes.

Quite recently, the Ministry of Justice of Ukraine has developed a new registration procedure with the view to ensure transparent, quick and efficient service to every person, while improving the ease of doing business and raising public trust and confidence.

Despite these latest improvements in legislation, there are still a number of intricacies that business entities need to take into account and timely identify, which might require high-quality legal support. In an attempt to simplify the registration procedure, provide convenient intuitive search for a proper application form, facilitate and speed up the process of filling out relevant documents, the Ministry of Justice of Ukraine has approved new application forms that are submitted for state registration – these forms became applicable from 1 June 2020.

Noteworthy, instead of the previously effective 24 application forms, after the changes, only nine have remained to be used starting from 1 June 2020 – these new forms are mostly grouped by the type of person subject to registration.

From now on, irrespective of the action you need to take, for example, with regard to an individual entrepreneur, one and the same approved form must be submitted.

There are also basic rules that have been newly approved for completion of all application forms submitted for state registration:
1) the application must be filled out in block letters;
2) if a particular page of the application form is not completed due to the lack of relevant information required there, this page does not have to be signed and submitted by the applicant;
3) it is now allowed to print out application forms on both sides of a sheet of paper;
4) when selecting particular fields in the application form, you may use the V-symbol or another similar symbol, which will indicate the selection of that specific field;
5) details of the ultimate beneficiary owner of the founder of the legal entity must be completed and further updated only if there is another legal entity among the founders / members of such legal entity;
6) details of the ultimate beneficiary owner of the legal entity or that of the founder of the legal entity must be completed in the state registration of changes or re-organization of the legal entity, only when these details need to be updated due to particular changes that have occurred to the details of such ultimate beneficiary owners;
7) it is not prohibited to complete more details than necessary in the application form and such excessive completion must not constitute a reason to suspend the documents processing (for example, while applying for the state registration of dissolution of a legal entity, the applicant may indicate the entity’s incorporation form and name, alongside the mandatory details of the company’s taxpayer ID number. The same applies in the state registration of cessation of business by an individual entrepreneur).

Please not that details of the ultimate beneficiary owners of legal entities or founders of legal entities must be submitted and further updated by all legal entities, except for political parties, structural subdivisions of political parties, trade unions, their associations, organizations of trade unions stipulated by the charters of trade unions and their associations, creative unions, local branches of creative unions, employers’ organizations, their associations, bar associations, chambers of commerce and industry, housing cooperatives, religious organizations, governmental authorities, local self-governments, their associations, state and public utilities, institutions, organizations.

What is important, applications for selecting the simplified tax system and/or voluntary registration as a payer of value added tax and/or entry into the Register of Non-Profit Institutions and Organizations, may be submitted from the day when the Ministry of Justice of Ukraine posts a special announcement on its website informing that it is possible to apply for selecting the simplified tax system and/or voluntary registration as a payer of value added tax and/or entry into the Register of Non-Profit Institutions and Organizations by way of filling out relevant pages in application forms. In simple terms, from 1 June 2020 and for a while, application forms will stay inactive for use in the above part – you will have to wait for a special announcement by the Ministry of Justice. Until this announcement, the procedure will stay the same – you have to submit a separate application for the state registration.

Contact information such as phone numbers and/or email addresses of founders/members, chief executive officers, or members of corporate bodies of legal entities, will be entered to the Unified State Register of Legal Entities, Individual Entrepreneurs and Non-Government Organizations after the modification of the register’s software.

Morgun & Partners Law Firm is a team of professionals with extensive experience in providing legal support for business. Running a company or doing business requires a good practical knowledge of civil, commercial and tax laws. To ensure your company’s efficient performance, you need more than only sound calculations – you have to rely on highly qualified professionals, otherwise a simple procedure might take a lot of efforts, time and money, and turn out to be lossmaking in the longer run.

Due to the dynamics of the recent legislative changes and flexibility in the application of some provisions, all business entities in Ukraine currently operate in the environment where they need high-quality legal support. The primary purpose of our team’s professional efforts is to create the best possible conditions for your business growth and offer you the most efficient and forward-looking solutions.

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