The Law of Ukraine
On Farming Enterprise
Date of Entry into Force:
July 29, 2003
The Law defines legal, economic and social principles of creation and activity of the farming enterprises as a progressive form of citizens' entrepreneurial activity in the field of agriculture in Ukraine.
The farming enterprise is a form of citizens' entrepreneurial activity with establishment of legal entity. It may be established by one citizen of Ukraine or several citizens of Ukraine who are relatives or family members. Members of the farming enterprise may be a married couple, their parents, children who are 14 years olds, other family members, relatives who united to run the farming enterprise jointly. The farming enterprise shall have its name, seal and stamp and operate on the basis of the statute.
The right to create the farming enterprise shall have each citizen of Ukraine who is 18 years old.
The head of the farming enterprise shall be its founder or other person determined in the statute.
Land plots for running the farming enterprise are transferred in ownership to the citizens of Ukraine and leased from the lands of state (respective district state administration) or communal property (local council).
The farming enterprise shall be subject to state registration after receipt of State Deed for Land Ownership or conclusion of lease agreement on land plot and its state registration. State registration of the farming enterprise shall be performed in the executive committee of city, district in city council or in district, district in cities Kyiv and Sevastopol state administrations in the place of residence of a person or location of a land plot. After the state registration the farming enterprise shall receive the seal with its name and address, open accounts in banks and start relations with other enterprises.
Members of the farming enterprise shall have the right to receive free of charge in ownership land plots in amount of land share (pai) from lands of state and communal property. Ukrainian citizens who received land plots in permanent use or lease for running the farming enterprise until January 1, 2002 shall have privileged right to acquisition (redemption) of land plots in ownership in volume to 100 hectare of agricultural lands, including to 50 hectare of ploughed field. Thereto, payment may be conducted by installments for up to 20 years.
For its needs farming enterprise shall have the right to use generally found minerals, forests, water objects and sweet underground waters located on the territory of a land plot.
Property of the farming enterprise shall belong to it on the basis of ownership right. The farming enterprise shall be responsible under its liabilities exclusively within the limits of the property owned by it. Penalty on land plots granted in ownership in order to run the farming enterprise shall be imposed in cases when the farming enterprise does not have other property on which penalty may be imposed.
Pursuant to the legislation of Ukraine farming enterprise may be subject to inheritance.
The farming enterprise shall keep accounting of results of its work and give financial reports, statistic information and other data to respective bodies.
Activity of the farming enterprise may be stopped in case of:
- recognition of the farming enterprise insolvent (bankrupt);
- absence of any member of the farming enterprise or heir who wants to continue activity of the enterprise.