She noted that farms actually duplicate the functions of limited liability companies (LLCs) and individual entrepreneurs (IEs).
The draft law proposes to apply the same approach to all business entities, and farms as an organizational and legal form will not exist.
«The draft law contains transitional provisions that guarantee farms a painless transition to the new organizational and legal form. Within 5 years from the date of entry into force of the law, farms will have the opportunity to decide to transform into business companies or merge with others,» emphasized Lyudmyla Shemelynets.
During the transitional period, the draft law, in particular, proposes that
— during reorganization, creditors cannot demand security for fulfillment of obligations by entering into pledge or surety agreements, early termination or fulfillment of obligations to the creditor and compensation for losses;
— a business entity (successor to a sole proprietorship) may use licenses and other permits obtained for a sole proprietorship until their expiration;
— the right of permanent use of land plots acquired by enterprises at the time of the Law's entry into force is transferred to the successor company;
— registration actions for the transformation of a farm into a business entity and administrative services related to the reissuance of permits and property rights are free of charge.
As a reminder, a farm is an entrepreneurial activity of citizens, which consists in the production of marketable agricultural products, their processing and sale for profit.
A farm may be established by one citizen of Ukraine or several citizens of Ukraine who are relatives or family members in accordance with the law.
Establishment of a farm allows farmers to participate in market relations, produce and officially sell their products.
PigUA.info by agrotimes.ua