Legal updates (19.08.22)

Below you will learn about:

• Changes in state registration process
• Changes to the Law of Ukraine “On Land Lease”
• Decision of the National Bank of Ukraine
• Entry into force of new provisions regarding state language and introduction of administrative liability for violations
• A new wording of the Law of Ukraine «On joint-stock companies»
• Updated list of critical import services

The process of performing automatic registration actions through the Diia Portal has been improved.

In particular, it has been provided for the possibility to carry out list of registration actions regarding the individual entrepreneurs and legal entities in automatic mode (without participation of the state registrars) through the Diia Portal.

On September 26, 2022, other changes are expected to enter into force. The changes will provide legal entities for the possibility to conduct state registration of changes to information about a legal entity in the Unified State Register, as well as decisions to terminate a legal entity or on revoking decisions to terminate a legal entity through the Diia Portal in automatic mode (without participation of the state registrars).

Such changes should significantly speed up the registration process.

Changes to the Law of Ukraine “On Land Lease”

On September 26, 2022, amendments to the Part 3 of Article 31 of indicated Law will enter into force. Respective changes establish that the transactions on termination of the lease (sublease) agreements of agricultural lands, the lessees (sublessees) in which are legal entities of private law (except for a joint-stock companies, general partnership and limited partnership), are significant transactions. Preapproval on execution of such significant transactions by general meeting of shareholders or another management body of legal entity is required (unless the charter of the legal entity expressly provides that such transactions are not significant). In case failure to obtain respective preapproval such transactions are void.

Decision of the National Bank of Ukraine

The National Bank of Ukraine fixed the new official exchange rate of the hryvnia to the US dollar.

The National Bank of Ukraine corrected the official exchange rate of the hryvnia to the US dollar and fixed it at 36.5686 hryvnias per US dollar.

According to the National Bank of Ukraine notification, such a correction will make it possible to maintain control over the dynamics of inflation, maintain the smooth operation of the financial system during the war, will increase the inflow and sale of foreign exchange earnings by exporters, minimize speculations in the market and stabilize exchange rate expectations.

Conditions for setting the rate of sale and purchase of currency in the cash and non-cash market segments remain unchanged.

The sale and purchase of currency by banks in the non-cash segment of the currency market will be carried out at an exchange rate that cannot deviate from the official rate by more than 1%.
The currency sale rate in the cash segment of the currency market will be determined by supply and demand.

Ukrainian banks and payment systems will recognize electronic trust services from the European Union.

The National Bank of Ukraine settled the issue of recognition of qualified electronic trust services provided in the European Union. From now on, banks of Ukraine, branches of foreign banks and participants of Ukrainian payment systems should recognize:

• qualified electronic signatures and/or qualified electronic seals created in accordance with the legislation of the European Union;
• means of a qualified electronic signature or seal, certified in accordance with the legislation of the European Union.

According to the National Bank of Ukraine notification, such a decision will speed up the process of integration of the banking system of Ukraine into the Single Digital Market of the European Union.

Entry into force of new provisions regarding state language and introduction of administrative liability for violations

Starting from July 16, 2022, certain provisions of the Law of Ukraine “On Ensuring the Functioning of the Ukrainian Language as a State Language” entered into force. According to it:

• any product on which a computer program is installed (be it a vehicle or household appliances) must have a Ukrainian-language interface, regardless of whether this interface uses an electronic screen or has a control panel with buttons;
• all Internet resources (websites, social networks pages, YouTube channels, Viber channels, Telegram channels, mobile applications, etc.) used by legal entities registered in Ukraine should have the Ukrainian-language version, which must be downloaded for users in Ukraine by default. Such a Ukrainian-language version may have less information than the versions in other languages, but the information should be sufficient for a user from Ukraine to fully understand the purpose of activity of the legal entity.

In case of violation requirements, managers and employees of legal entities may be fined for up to UAH 11,900.

A new wording of the Law of Ukraine «On joint-stock companies» was adopted

Certain provisions of the law on joint-stock companies were introduced, in particular:

• the minimum amount of the charter capital of a joint-stock companies was reduced to 200 amounts of the minimum wage;
• possibility to hold the general meetings of shareholders by electronic voting and remote meetings along with the traditional face-to-face general meetings of shareholders;
• the institute of advisers on corporate rights to help shareholders;
• the possibility to establish one-levels or two-levels management system in joint-stock companies;
• the possibility for shareholders to alienate their shares without the consent of other shareholders;
• certain issues of responsibility of officials of joint-stock companies were settled.

The new wording of the law on joint-stock companies should enter into force on January 1, 2023.

The list of critical import services has been updated

The Cabinet of Ministers of Ukraine, by its Resolution No. 814 dated July 22, 2022, updated the list of critical import services, presenting it in a new wording.

Following services were excluded from the list: settlements under vehicle leasing contracts, advertising activities, vehicle lease, settlements under license contracts, in particular royalties.

Some services were included to the list such as services for repairing drilling equipment, a telemetry system, amending the randomization list, hosting an electronic individual registration forms, payment for the services of the personnel provision by non-resident companies to residents of Ukraine, services for the organization and conducting of recreational, sports and health camps for children, teenagers and young people.

The full list of services, works, intellectual property rights, other non-property rights intended for sale (payment transfer), for the import operations of which the National Bank of Ukraine is recommended to ensure transfers, can be found below:

View the list

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