L&M Finance Group

Simplifying the conditions for doing business during martial law: a detailed analysis of the draft law

On September 2, 2024, the President of Ukraine signed draft law No. 7331 "On Amendments to Certain Legislative Acts of Ukraine on Simplifying the Conditions for the Introduction of Economic Activities During Martial Law". This law aims to facilitate procedures related to starting and running a business during martial law in order to support the economy and ensure a stable supply of goods and services to citizens.

Let's consider the key provisions of the draft law, taking into account additional nuances.

The main provisions of the draft law

The draft law offers significant simplifications for business entities during martial law. In particular, entrepreneurs will be able to start certain types of activities based on the submission of a declaration to the relevant licensing authorities, permitting authorities and Administrative Service Centers (CSCs), without the need to obtain the permits normally required by law. Such a system will allow entrepreneurs to avoid bureaucratic procedures and significantly speed up the process of starting a business.

It is important to note that declarations will be valid not only during martial law, but also until the end of the calendar year in which martial law was suspended or revoked. In addition, after the end of martial law, the validity of the declarations was extended for at least another three months. This provision will give entrepreneurs additional time to adapt to the new conditions and issue the necessary permit documents after the situation stabilizes.

Also, all licenses previously issued are automatically extended for the period of martial law and until its termination, with a similar extension of at least three months after the termination or lifting of martial law.

Inspections and controls

One of the key aspects of the draft law is the temporary suspension of scheduled inspections by licensing authorities regarding compliance with the requirements of legislation in the field of licensing. This will allow entrepreneurs to focus on maintaining and developing their business without additional checks during a difficult period for the country.

The Government of Ukraine will also be authorized to establish the rules for submitting declarations, determine the list of information that must be included in the declaration, as well as approve the list of types of economic activity that cannot be carried out on the basis of such a declaration. This will provide flexibility in identifying and regulating specific areas of activity that are critical to security and the economy.

Expected results and impact

The introduction of this draft law will have several positive consequences. First of all, entrepreneurs will have the opportunity to start or continue business faster and more efficiently, without wasting time on processing permit documents. This will not only promote business development, but also ensure a stable supply of goods and services, which is critically important for citizens in times of crisis.

It is also important that the extension of licenses and simplification of bureaucratic procedures will allow businesses to work even in the most difficult conditions, which will support the country's economy. In turn, this will have a positive effect on the general functioning of state bodies, reducing the administrative burden and reducing the need to control the issuance of new documents during the war.

Thus, the draft law "On Amendments to Certain Legislative Acts of Ukraine on Simplifying the Conditions for the Introduction of Economic Activities During Martial Law" is critically important for supporting the Ukrainian economy. The introduction of simplified procedures, the extension of the validity of declarations and licenses, as well as the suspension of inspections will help entrepreneurs to continue their activities and maintain economic stability in the country.