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The Government approved resolution that will improve the position of Ukraine in the Doing Business rating
27.03.2019 | 15:30 | Directorate for relations with state bodies and public

On March 27 the Cabinet of Ministers of Ukraine adopted a comprehensive resolution initiated and developed by the Ministry of Economic Development and Trade of Ukraine, aimed at facilitating the conditions of doing business in Ukraine and raising Ukraine’s position in the international Doing Business rating.

“The business climate in Ukraine consists of many small solutions, which in complex give a significant result. One of our key tasks in improving the business climate is to minimize the number of direct contacts between businesses and officials. It is for this purpose that we are expanding the possibilities of e-government in the area of registration and receiving the permits and other documents by businesses. The approved government decree, in particular, defines the rules allowing the founders of limited liability companies electronically to elect own versions of the charter, and the construction customers to faster and less costly register declarations of readiness for construction using an electronic cabinet”, commented First Deputy Minister of Economic Development and Trade of Ukraine Maksym Nefiodov on the importance of the Government’s approval of the resolution in favor of business.

Thus, the Government simplified the process of bringing the charters of existing limited liability companies into compliance with the Law On Limited Liability Companies. According to amendments approved in the resolution, the founders of the company will be able to electronically elect the version of the charter that is more suitable for them. The very procedure of registration of limited liability companies will be accelerated to maximum extent.

At the same time, the Cabinet of Ministers allowed the banking institutions to receive information from the state registers about persons applying for loans. By this time, there was no such opportunity at the legislative level, which complicated the task for the banks to predict the ability of a person to fulfill own obligations to repay loans. This increases the risk of banking operations on loans, as well as leads to the accumulation of troubled loans, which in turn increases the value of money for customers. The expected result of the approval of the resolution will be the reduction in the cost of lending.

Among other things, the resolution adopted by the Cabinet of Ministers of Ukraine established a single, transparent and business-friendly procedure for the assignment of postal addresses to the construction sites and real estate facilities. By this time, the legislative framework of Ukraine lacked a clearly defined procedure for the assignment of addresses to ready-made construction sites. The postal addresses were assigned by local authorities at their discretion. The lack of a clear procedure for the assignment of addresses often led to abuses: artificially delaying the procedure and further creating the barriers to registration of new real estate facilities.

The Government also simplified the registration of declarations of the readiness of the construction site for operation through the expansion of functions of the electronic cabinet of employees of state architectural and construction control, as well as determining the status of electronic service as an electronic cabinet of the customer. This decision will encourage the construction customers to make more use of e-government opportunities in the area of registration of real estate facilities and reduce their personal interaction with state architectural and construction control authorities.

The Cabinet of Ministers of Ukraine brought the procedures of environmental control over discharge of waters containing pollutants during the stay of vessels in inland seawaters or territorial sea into compliance with the requirements of the Customs Code of Ukraine (exclusion of ballast water control). By this time, the legislation of Ukraine had an imperfect procedure for the implementation of marine environmental inspections by the State Ecological Inspectorate for the control over discharge of waters containing pollutants during the stay of vessels in the inland waters of Ukraine. The result of the adoption of the decision determined by the resolution will be the reduction of corruption risks in the environmental area.

Another decision of the Government adopted in favor of business is to simplify the import of automobile spare parts, which will reduce the administrative pressure on the enterprises importing these products. By this time, the import of automobile spare parts was complicated by the need to obtain type and quality certificates exclusively from competent authorities of Ukraine. This, in turn, contradicted the conditions of the international treaties between Ukraine and the EU, in particular, the Association Agreement. Due to the adopted resolution, the importing companies will be able to import automobile spare parts to Ukraine, having the certificates of type and quality of automobile spare parts of the countries issued in the EU countries.

More information about decisions adopted in favor of business is available at: http://bit.ly/2TFPqOo.

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