In the same way as almost around whole modern World, most business transactions in Ukraine are made using corporate entities. However among Ukrainian citizens (in fact among Ukrainian residents in the most wide understanding of this word) there is also popular so called "private entrepreneurship", which also will be described here below.

Practice of commercial relations is rather young when we are talking about Ukraine and goes back to the year 1991, when the former USSR collapsed and Ukraine gained its independence. Starting form that period Ukraine has founded its own regulations as regarding entrepreneurship and commerce, which have being based on quite new and progressive principles partially taken from other most democratic and progressive state and legal systems of the World. Before year 1991 most part of commercial activity was allowed only for state owned companies and enterprises, whilst conduction of such activity by non-state individuals was considered a crime entailing the criminal responsibility.

As you can see, the legal system of Ukraine is rather young and due to this is in a continuous process of adjustments and reformation, which means constant work of the Ukrainian legislative body called upon to improve Ukrainian laws and regulations as well as collisions among the same. Therewith regardless all the above, Ukrainian laws and regulations do provide good and effective regulation of commercial, banking, insurance, corporate, public, civil (private), family and other relations.


Ukrainian corporate laws and regulations

From one hand Ukrainian corporate legislation is well-developed, but from the other hand it is represented by several laws and regulations (not by a single legislative act such as a code for instance), which could be effectively applied only by an attorney at corporate law, who knows how to apply the collision rules in order to supersede the existing collisions in the corporate regulatory acts.

The main acts, which regulate establishment of corporate entities in Ukraine, are:

- The Civil Code of Ukraine effective as of January 1, 2004 with numerous subsequent amendments, which are continuously included into the same by Ukrainian Parliament (Verkhovna Rada of Ukraine);

- The Commercial Code of Ukraine effective as of January 1, 2004 with numerous subsequent amendments, which are continuously included into the same by Ukrainian Parliament (Verkhovna Rada of Ukraine);

- The law of Ukraine "About commercial entities" effective as of October 1, 1991 with numerous subsequent amendments, which are continuously included into the same by Ukrainian Parliament (Verkhovna Rada of Ukraine);

- The law of Ukraine "On state registration of corporate entities and private entrepreneurs" effective as of July 1, 2004 also with numerous subsequent amendments, which are continuously included into the same by Ukrainian Parliament (Verkhovna Rada of Ukraine).

The first three above regulations mainly provide regulatory norms on foundation, functioning, managing and liquidation of various corporate structures as well as provide limits of responsibility of each type corporate entity and the minimal amount of share capital, which should be paid-up as on the date and/or within certain period of time starting from the moment of state registration (incorporation) of a corporate entity in Ukraine.

And the forth one provides procedures and rules for incorporation and termination of Ukrainian corporate entities and private entrepreneurs.

Also there are a lot of bylaws, which describe rules and procedures for corporate entities and in strict accordance with the above four regulations, but in each and every detail.

The above information is provided herein in educational and informative purposes only. It is provided that you have to get appropriate legal advice as regarding the legal and other issues of your interest in Ukraine in order to have the exact, extensive and up-to-date legal and other related information.

Do not hesitate to contact us if you have any questions or issues of legal nature, our Law Firm is working for you and our experienced legal specialists are always ready to help providing the client with appropriate legal consultations, legal reports and summaries, reasonable legal advices and all the other required legal support, assistance, coverage and protection.