How to start agribusiness in Ukraine?
In Ukraine, there are more than one legal form for agribusiness – economic activities in the
field of agriculture.
The most optimal ones are a cooperative and a farm. A good choice will be a limited
liability company – the most widespread type of legal entity in Ukraine. However, forms
that are more «specialized» have their advantages.
To create a cooperative, it is necessary to make a decision, drawn up by a protocol, at the
constituent assembly. The protocol are signed by a chairman and a secretary.
There are production and service cooperatives. Production cooperatives created exclusively
individuals and in need of personal labor participation of these individuals. Service
cooperatives combine both individuals and legal entities. The aim of service cooperatives is
to protect the interests of agricultural producers – members of the cooperative.
After this you need to hold state registration of a new legal entity. To do this, apply to the
Center for the provision of administrative services, a state registrar or notary with the
constituent documents and confirmation of payment for the administrative service.
Signatures in Statute must be notarized. The registration deadline is 24 hours, but in practice
there may be delays associated with the technical problems of the system. In addition, these
24 hours do not include weekends and holidays.
The farm can only be created by family members or by one person. Employees of the farmer
may be not only family members, but also other persons.
The registration procedure is similar to the registration of any legal entity, except a farm can
exist in the form of an individual entrepreneur. There is some discrepancy regarding the
order of registration of a farm in accordance with various laws. The general law regulating
the registration of a legal entity, including a farm, does not contain a requirement to submit
documents confirming the right of ownership or use of land. Consequently, the state
registrar or notary does not have the right to demand such documents.
At the same time, the law on farming states that the farm is registered in the general
procedure, if the citizen acquires ownership or use of the land plot.
Conclusion about the need to acquire land before the farm's registration is premature due to
the absence of clear legal instructions in the law. A person may acquire the right after the
state registration of a farm.
Individual farms can also be incorporated into a cooperative.
Taxation of agribusiness can be general and simplified. After one year, farmers can become
taxpayers of the single tax of the fourth group if the share of agricultural production in the
previous year is not less than 75%. That means the taxation of land, not income.
Agricultural producers can also receive subsidies for development from the state.
The cooperative and the farm may have their own land, use the land of their members or
The Land Code provides for the possibility for every citizen to get a land plot free of charge
within certain limits established depending on its intended purpose.
To realize this right, it is necessary first to find out what land plots in a particular area are
"free". This can be done by submitting a request to the State Geocadaster or through the
Public Cadastral Map.
The results of online searches in the State Land Service may not be successful. The public
cadastral map contains errors, some rights to land, especially those received a long time ago,
have not been registered.
However, this does not mean that the search should not start. The main thing is to have the
patience and perseverance to go through the entire procedure.