Law of Ukraine
“On Licensing of Certain Types of Economic Activity”
Date of Entry into Force:
October 21, 2000
This law defines the types of economic activity which are subject to licensing; sets forth licensing procedures; establishes state control in the field of licensing; determines responsibilities of economic entities and licensing bodies for violation of licensing legislation.
The Law applies to all business entities and to all types of activity, except for banking activity, foreign economic activity, licensing of broadcasting channels, licensing in the field of electric power industry and use of nuclear energy, licensing in the field of intellectual property.
Types of economic activity, except for cases envisaged by the previous paragraph, which are not included into the list of types of economic activity determined by Article 9 of this Law, are not subject to licensing. Article 9 of this law determines 60 types of economic activity, which are subject to licensing. They include the following:
- search for (prospecting of) minerals;
- production of explosive substances and materials;
- production of especially dangerous chemical substances;
- production of medications, wholesale and retail trade with medications;
- production of forms for securities, documents of strict reporting;
- development, production, manufacturing, storage, transportation, purchase, transfer, import, sale, destruction of narcotic and psychotropic substances and precursors;
- medical practice;
- organization and maintenance of totalizators, gambling facilities, release and raffle of lotteries;
- provision of services on transportation of passengers, cargoes by air, river, sea, automobile, railway transport;
- stocking, processing, metallurgical processing of ferrous and non-ferrous scrap metal;
- provision of educational services;
- provision of services related to safeguarding state and other property, provision of services on guarding citizens;
- provision of services on radio and telephone communication;
- organization of foreign, domestic tourism, excursion activity;
- production of ethyl, cognac and fruit alcohols, alcoholic beverages, wholesale trade with ethyl, cognac and fruit alcohols, wholesale and retail trade with alcoholic beverages;
- production of tobacco products, wholesale and retail trade with tobacco products;
- insurance activity;
- professional activity at the market of securities.
The law establishes the uniform procedure for issuance of licenses. For the purposes of obtaining a license it is necessary to submit a standard application and other necessary documents to a relevant licensing body, which within 10 days (unless specific laws governing relations in some fields of economic activity provide for other deadlines) makes a decision on whether to issue the license. The application should also be accompanied by a copy of certificate for state registration of subject of entrepreneurial activity. For some types of economic activity - subject to licensing - the application for obtaining license shall enclose documents, the full list of which is to be determined by the Cabinet of Ministers of Ukraine.
Article 12 provides for tenders on obtaining licenses for those economic activities performance of which is related to use of limited resources. The procedure for carrying out such tenders is established by the Cabinet of Ministers of Ukraine, if otherwise is not envisaged by the Laws of Ukraine. Types of economic activity, performance of which is related to use of limited resources include:
- extraction of uranic ores;
- extraction of precious metals and precious stones;
- supply of natural gas under regulated or non-regulated tariffs;
- storage of natural gas in volumes exceeding the level, stipulated by license requirements, other.
- rendering of services on radio communication (with use of radio frequencies).
Article 13 stipulates that licensing bodies use license forms of unique sample within the territory of Ukraine. A license form of unique sample is approved by the Cabinet of Ministers of Ukraine. This article also specifies license properties.
On the basis of a license, issued by a licensing body, which is the central body of executive power, economic activity shall be performed within the entire territory of Ukraine. Economic activity based on the license issued by a licensing body, which is a local body of executive power or a specially authorized executive body of local government, may be performed within the territory of a relevant administrative-territorial unit.
A duty shall be paid for issuance of the license. The rate of duty and the procedure for remitting it to the State Budget of Ukraine are determined by the Cabinet of Ministers of Ukraine.
The Law also sets forth the procedure for re-registering licenses, issuing copies and canceling licenses. The Law envisages introduction of a unified register for all issued licenses.
The Law also determines norms related to responsibility for violation of provisions of this Law (Article 22 of this Law) and compensation of damages due to violation of the legislation in the field of licensing (Article 23 of this Law).