Ukraine: Business and property registration decentralised, new online services introduced
CMS Cameron McKenna,
Kyiv, Ukraine, Tue, May 10, 2016
On 20 April 2016, the Ukrainian Government issued Regulation No. 304-р (the “Regulation”) which came into force on 23 April 2016. The Regulation transferred the powers in the area of state registration of immovable property and businesses from the regional bodies of the Ministry of Justice of Ukraine to the local municipal authorities and state administrations. Decentralisation of the business registration services started on 1 January 2016 as a result of the coming into force of ‘decentralisation laws’, which introduced amendments to certain legislative acts of Ukraine on state registration. Notaries were granted broad powers to register businesses and immovable property and the transition period for transfer of state registration powers to the local authorities was to be implemented until 30 April 2016.
In addition, the Ministry of Justice continues to develop online registration services. Since 21 April 2016, it has been possible to register legal entities and individual entrepreneurs by using the online web portal iGov. The Ministry of Justice soon expects to launch additional, and the most anticipated online services, such as change of directors, change of activities of the company, etc.
The Regulation is a part of ongoing decentralisation reform in Ukraine, in line with the EU Association Agreement. It is anticipated that decentralisation of registration services will simplify the business registration procedures by reducing the time and expenses involved and it is hoped that it will also prevent corruption in this area, thereby improving the overall business environment in Ukraine.
1. Law of Ukraine “On Amendments to Law of Ukraine “On State Registration of Legal Entities and Individual Entrepreneurs” and Certain other Legislative Acts of Ukraine regarding Decentralisation of Authorities with respect to the State Registration of Legal Entities, Individual Entrepreneurs and Public Organisations” No. 835-VIII dated 26 November 2015.
2. Law of Ukraine “On Amendments to Law of Ukraine “On State Registration of Proprietary Rights to Immovable Property and Encumbrances” and Certain other Legislative Acts of Ukraine regarding Decentralisation of Authorities with respect to the State Registration of Proprietary Rights to Immovable Property and Encumbrances” No. 834-VIII dated 26 November 2015.
3. Regulation of Cabinet of Ministers of Ukraine “On Termination of Providing Administrative Services on the State Registration of Rights to Immovable Property and their Encumbrances, Legal Entities and Individual Entrepreneurs by Certain State Registration Authorities Established by the Ministry of Justice” No. 304-р dated 20 April 2016.
Daniel Bilak, Managing Partner, Daniel.Bilak@cms-cmck.com
Natalia Kushniruk, Senior associate, Natalia.Kushniruk@cms-cmck.com