Changes in the registration procedure concerning notarization

 In the course of the reform in the state
registration system at 6 October 2016 was adopted the Law of Ukraine «On the Amendments
to Certain Legislative Acts of Ukraine regarding the improvement of the
official registration of rights to immovable property and protection of
property rights» and it came into force almost one month later.

Particularly, the
Law of Ukraine «On state
registration of legal entities and natural persons-entrepreneurs and
non-governmental organizations» (hereinafter –
the Law) was amended by the aforementioned law. The main changes were related
to the notarization of signatures of legal entities’ members on the documents
submitted to the state registrar.

It is interesting
that recently in the course of this reform the obligatory notarization of legal
entity participants’ signatures on its statute was cancelled. This provision
was intended to simplify the procedure and reduce the price of registration for
entrepreneurs. However, it had some negative consequences i.e. radical response
of banks and contractors to non-notarized statutes etc.

In Article 15,
p.1 (9) of the amended Law was established the rule that the authenticity of
signatures on the instrument of incorporation must be notarized. However, there
are some exceptions, for example, it is not obligatory to notarize a signature
on the statute of newly incorporated legal entity.

In addition,
Article 15, p. 6 (1) of the Law of Ukraine «On the
Amendments to Certain Legislative Acts of Ukraine regarding the improvement of
the official registration of rights to immovable property and protection of
property rights» provided obligatory
notarization of signatures on the decision of the authorized governing body of the
legal entity. It means that from this time forward the authenticity of
signatures on the protocols to amend instruments of incorporation of the legal
entity or the information in the Unified State Register of Legal Entities, Natural
Persons-entrepreneurs and Non-governmental Organizations must be notarized.

Consequently,
though these amendments the legislation returned to the rule, which existed
before, that the signature on the statute must be notarized, and these changes
complicated the registration process for entrepreneurs establishing obligation
to notarize signatures on the decision of the authorized governing body of a
legal entity.

In addition to
the abovementioned changes, it is made possible to obtain an extract from the
Unified State Register of Legal Entities, Natural Persons-entrepreneurs and
Non-governmental Organizations with the signature and stamp of the state
registrar, also Article 34-1 was added to the Law which relates to control in
the sphere of state registration, and some provisions concerning payment for
state registration were changed.