L&M Finance Group

The simplification of the procedure of conducting economic activity in Ukraine during the period of martial law

In order to adapt the economy and business to the existing functioning of Ukraine in the period of martial law, Verchovna Rada of Ukraine has registered the draft law №7331 of April 29, 2022 "On Amendments to certain Laws of Ukraine on simplification of conditions for economic activity during Martial law (Emergency situation) in Ukraine". The initiators of the joint work, named the State Regulatory Service of Ukraine and the Ministry of Economy of Ukraine, have developed this project on deregulation of business in Ukraine, in order to simplify the conditions for economic activity to support Ukraine's economy in its difficult times.

Thus, the draft law stipulates that during martial law the business entity has the right to carry out economic activity on the basis of free of charge submission of the Declaration of economic activity to the relevant permitting State authorities. Therefore, it simplifies the procedure for obtaining permits for the right to conduct certain economic activity without obtaining other permits, except the list of economic activities determined by the Cabinet of Ministers of Ukraine.

Also, the draft law provides for the receipt of such a service on the principle of extraterritoriality. It means that the application and documents for obtaining the permit, the Declaration of economic activity can be submitted by the choice of the economic entity regardless of the declared (registered) location (place of residence), place of economic activity or location of the relevant object. This procedure for obtaining permits will take place in the manner provided for in part 14 of Article 41 of the Law "On the permitting system in the sphere of economic activity" or in another way defined by the Cabinet of Ministers of Ukraine.

Such a declaration can be submitted through an administrator at any administrative service center or online – through the Unified State web-portal of electronic services, an appendix or the DIIA portal, designed in accordance with the requirements of laws in the field of electronic documents.

According to the established features of declarative principle, which is based on the draft law, in particular provides:
·      declaration of legal status is equal to the document of the permit nature, license and other results of provision public (electronic public) services on the usual procedure in peacetime;
·      the received declaration is valid during the entire period of the martial law and within three months of its termination (cancellation);
·      permit documents whose validity period is suspended during the period of martial law shall be valid during the entire period of the martial law and within three months of its termination (cancellation);
·      suspension of the time limit for reissuance (receipt) of permits, submission of reports, notifications, documents, which is determined by law at the time of the martial law;
·      suspension of scheduled inspections on the issuance of permits, the established procedure for their issuance at the time of martial law.

For nowadays, there is no list of types of economic activity that are changed into the declarative principle of obtaining permits. However, the Cabinet of Ministers of Ukraine has laid out a list of the types of activities specified in the annex to decree № 314 of March 18, 2022 which cannot be carried out on the basis of a declaration of martial law, in particular:
-       Transportation of passengers, dangerous cargoes and hazardous wastes by road or rail / international transportation of passengers and cargoes by road;
-       Banking, financial services and activities for the provision of collection services to banks;
-       Foreign economic activity;
-       Activities in the gambling market;
-       Lottery issuance and holding;
-       Activities in the field of television and radio broadcasting;
-       Provision of services in the field of cryptographic protection of information (except for electronic digital signature services) and technical protection of information;
-       Execution of construction (preparatory) works / commissioning, which according to the class of consequences (responsibility) belong to objects with minor consequences (СС1), with average (С2) and significant (С3) consequences.