On July 7, 2014 the Bill of Ukraine “On amendments to some legislative acts of Ukraine to simplify the state registration procedure for termination of business activities of individual entrepreneurs based on the notification principle” dated 13.05.2014 No.1258-VII was passed into law (hereinafter the Law). The main purpose of the Law is to facilitate the procedures for the termination of business activities of individual entrepreneurs and reduce the term for such termination to 1 day.
The Law amends the Civil and Commercial Code of Ukraine as well as the laws of Ukraine "On State Registration of Legal Entities and Individual Entrepreneurs," "On the collection and accounting of a single fee for obligatory state social insurance," "On restoring the debtor's solvency or declaring it bankrupt," etc.
According to the proposed amendments, termination of an individual entrepreneur’s business activities will be registered immediately upon receipt of the entrepreneur’s appropriate expression of will (in the form of a registration card), without the right of regulatory bodies to block such registration. It should be noted that bankruptcy procedure applies to debts that have arisen in connection with the entrepreneur’s business activities, even if the person has lost its entrepreneur status.
It should be noted that if before the entry into force of the Law an individual entrepreneur applied for termination of her/his business activities but failed to submit the registration card for state registration of the termination, the state registrar shall complete a registration card for state registration of the termination of business activities at the entrepreneur’s own decision no later than 1 month from the date of entry into force of the Law, shall make a record on state registration of termination of the business activities in the Unified State Register and shall issue (mail with a list of enclosures) a notice of that record to the relevant individual.