Cabinet simplifies doing business in Ukraine

Ukraine's Economic Development and Trade Ministry says the Cabinet of Ministers has adopted a comprehensive resolution to facilitate the conditions for doing business in Ukraine, as well as to increase the country's position in the Ease of Doing Business ranking.

Among other things, the resolution simplified the procedure of bringing the charters of existing limited liability companies in line with the existing LLC law. Now they will be able to electronically choose the charter versions that suit them best, and the LLC registration procedure will be as fast as possible, the ministry's press service said in a statement on March 27.

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At the same time, the Cabinet allowed banking institutions to receive information from state registries about persons applying for loans.

"Until then, there had been no such possibility at the legislative level, which made it difficult for banks to predict clients' ability to meet their own loan payment obligations. This adds risks to banks' loan operations and also leads to the accumulation of bad loans, which in turn increases the value of money for customers," the press service said, adding that the adoption of the document will lead to a decrease in the cost of lending.

Moreover, the resolution established a standard, transparent and business-friendly procedure for assigning postal addresses to construction and real estate facilities.

"Until now, there has been no clearly defined procedure for providing addresses to facilities of finished construction projects in Ukraine's legislative field. Local authorities provided the postal addresses at their discretion. The lack of a clear procedure often led to abuses: deliberate delays and the subsequent creation of obstacles to the registration of new properties," the ministry said.

The government also simplified the registration of declarations on the readiness of the construction sites for operation by expanding the functionality of the electronic office of employees of the state architectural and construction control, as well as determining the e-service status for customers' e-offices.

"The move will stimulate construction customers to actively use e-government capabilities in the field of real estate registration and facilitate their interaction with the state architectural and construction control authorities," the report said.

The Cabinet also brought environmental control procedures for the discharge of water containing pollutants during the presence of ships within inland waters or the territorial sea in accordance with the requirements of the Customs Code of Ukraine.

The resolution also simplifies imports of spare parts for cars, which will lead to a reduction in administrative pressure on importers of vehicle components.

"Until then, imports of spare parts for cars had been complicated by the need to obtain type and quality certificates exclusively from authorized agencies in Ukraine. This, in turn, contradicted the conditions of international treaties between Ukraine and the European Union, in particular, the Association Agreement. Due to the adoption of the resolution, importing companies will be able to ship spare parts to Ukraine from abroad, using type and quality certificates issued in the EU," the press service added.

Ukraine is 71st in the Ease of Doing Business ranking.