Ukraine Leaps to Business Deregulation

KYIV, Ukraine, June 10, 2013 /PRNewswire/ --

Deregulation of business activity has become one of the reform priorities for Ukraine in 2012. It was conducted in four major areas - simplifying procedures for opening and closing a business, simplifying property registration, lifting the tax burden, as well as reforming public services system and narrowing state control for businesses. The results and prospects of business deregulation were addressed by the President of Ukraine Viktor Yanukovych in his annual message to the parliament of the country http://president.gov.ua/docs/poslannia2013.pdf.

Ukraine reduced the number of license-restricted business activities, introduced beta version of the single state administrative services website http://poslugy.gov.ua/, opened 114 regional centers for administrative services. The minimum authorised capital and the requirement to notarize business statutory documents have been dropped. The option of online business registration has made the process faster and cheaper.

Some of the major conveniences for businesses are related to reporting. Companies no longer report opening a bank account to the state, the banks are doing the job instead. Medium and large companies in Ukraine are now able to conduct electronic filing and payment. Since 2013, businesses provide annual income reports, while previously the reports were submitted quarterly.

Ukraine is also broadening the application of automatic VAT refunds. Currently, more than half of refunds is paid out automatically. The ongoing tax reform has led to income tax decrease to 19 percent in 2013. As part of the reform, Ukraine introduced a VAT relief for software operations, established income tax for companies working in this area at 5 percent, as well as decreased license fees for hydrocarbon producers.

Additionally, Ukraine simplified bankruptcy procedures by limiting the maximum duration of liquidation (no longer than one year). The announcement on bankruptcy proceedings in a company will be published by the official website of the High Commercial Court of Ukraine.

Aiming for further business deregulation, the Eastern European country aims to provide electronic registration of businesses, decrease paperwork by eliminating the need for businesses to place multiple inquiries to state bodies, and introduce the procedure of closing a business by declaration.

Ukraine's improvement in starting a business, registering property, and paying taxes has been highlighted by Doing Business 2013 World Bank report.

SOURCE Worldwide News Ukraine