The Law on deregulation is adopted

On February, 12, 2015 Verkhovna Rada of Ukraine in the second reading adopted the Law “On Amendments to Certain Legislative Acts of Ukraine on simplification of business conditions,” or so-called “Law on deregulation.”

Above mentioned law is developed on the initiative of the Cabinet of Ministers to accelerate the European integration process in our country and concerns such important issues as simplification of starting a business in general, significant reduction of various licensing procedures, and so on.

The Law introduces significant changes to the characteristics of the land lease regulation, namely reduces list of essential terms of the contract to three (the object of the lease, and rent period), the object of the lease under the contract can only be transferred from moment of state registration of the lease object unless otherwise is required by law; provides cancellation of the labor form of rent.

The changes also concern procedures of state registration of legal entities and individual entrepreneurs. Thus, due to the recent events taking place in Ukraine now state registration can be carried outside the location of the legal entity or residence of an individual. For the state registration now an administrative fee would be paid that will be charged based on the minimum salary. Information on the state registration will be published in on the official website of the Ministry of Justice.

The Law on deregulation also cancels compulsory state registration of franchise agreements.