Law of Ukraine
“On Enterprises in Ukraine”
Date of Entry into Force:
April 1, 1991
On January 1, 2004 the present Law has become invalid
(according to the Commercial Code of Ukraine
N 436-IV of January 16, 2003)
The law defines an enterprise in Ukraine as an independent business statutory entity with the rights of a legal entity; it performs certain activity (productive, scientific and research, and commercial) with the purpose of generating profit.
The following enterprises may be created in Ukraine:
- private enterprises (established on the basis of assets owned by a natural person);
- collective enterprises (established on the basis of assets owned by labor collectives of an enterprise);
- business associations (includes joint stock companies, limited liability companies, additional liability companies (partnerships), unlimited partnerships, limited partnerships);
- enterprises established on the basis of assets owned by an association of citizens (associations of citizens are organized according to the Law “On Associations of Citizens”);
- communally owned enterprises (established on the basis of property owned by relevant territorial communities);
- state-owned enterprises (established on the basis of property owned by the state), including special government enterprises. A special government enterprise is an enterprise, which is not subject to privatization and is transformed into a special government enterprise according to the decision of the Cabinet of Ministers of Ukraine.
An enterprise is considered established and shall acquire the rights of a legal entity from the date of its registration with state authorities. In Ukraine state registration is performed by executive bodies of the city council, district council located in the city, district council, Kyiv and Sevastopol district state administration in the location of enterprises (Law of Ukraine “On Entrepreneurship”).
Under the Law enterprises are permitted to establish branches, representative offices, departments and other structural units. In these cases enterprises have to adopt relevant regulations (statutes) on such entities and grant the rights to open current and settlement accounts.
Under this Law enterprises are permitted to integrate and form the following entities:
- associations (operate on the basis of a charter with the purpose of permanently coordinating economic activity. Associations do not intervene into productive or commercial activities of its participants).
- corporations (operate on the basis of a charter by combining productive, scientific and commercial interests. Each participant delegates some authority to the corporation for centralized regulation of its activity).
- consortiums (operate on the basis of statutes by combining industrial and banking capital. A consortium is usually established for a temporary period since the purpose of its participants is to achieve some common objectives);
- concerns (operate on the basis of statutes by combining industrial enterprises, scientific organizations, transport facilities, banks, trading enterprises, etc. Members of concerns are fully financially dependent on one entrepreneur or a group of entrepreneurs).
- other alliances of enterprises organized according to sector, territorial or other principles.
Enterprises, which form an alliance, retain their rights as legal entities.