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Procedure of the penalties under Article 336 of the Code of Civil Procedure

Procedure of the penalties under Article 336 of the Code of Civil Procedure

When initiating a property dispute, the lawyer, in addition to assessing the victory of his legal position, should think about the prospective recovery of funds in case of victory. The classic scheme is to expect when the debtor will receive at least some money from the counterparties or his debtors on the arrested bank accounts.

However, there is another way.

The Commercial Procedure Code of Ukraine (hereinafter referred to as the Code of Civil Procedure of Ukraine) introduced in 2017 a new mechanism for enforcing a court decision on recovery of funds – through recovery of funds from third parties who have debts to the debtor.

Such a mechanism is provided by Article 336 of the Code of Civil Procedure, which provides for the possibility of foreclosure on funds belonging to other persons and real estate, the ownership of which is not registered in the prescribed manner.

The application of such a procedure is relevant when enforcement proceedings are opened, seizures are imposed on the accounts, but debt collection is not carried out because of zeros on the accounts.

Recovery procedure

The first thing you need is a decision that has come into force to recover money from the debtor.

The next most important step is to search for the undisputed debt or to confirm the debt by a court decision that has entered into force that third parties have before the debtor.

After such a debt has been identified, we apply to the court – submit an application for recovery of funds belonging to the person who has a debt to the debtor. Such an application is submitted as part of your case, in which a decision was made to recover the money. Such a statement must indicate the decision on the basis of which the debtor is recovered, evidence of non-enforcement of the judgment on the date of application, evidence of a valid undisputed debt of a third party to the debtor or a judgment from which such debt is seen.

In its conclusions, the Supreme Court notes that the subject of such applications is 1) non-repayment debt to the debt collector and 2) the fact that there is an actual third party debt to the debtor, as evidenced by relevant evidence (including court decisions).

We recommend you to contact a professional lawyer in such procedures as finding the debt of third parties to the debtor, compliance with all procedural aspects, obtaining evidence of the relevance of the debt, as well as the correct wording of the claim in such a statement . 

In addition, the costs of his services can also be indicated as the costs of professional legal assistance, which are reimbursable by the debtor when filing the Application.

 

Author Lindyuk Svyatoslav, lawyer of corporate law practice and court representation Patriot.Legal.

Patriot.Legal is a company that provides legal and audit services.

Patriot.Legal opens new direction of registration of companies in foreign jurisdictions

Continuing its growth and rapid development, the Patriot.Legal team announces the expansion of corporate law practice and opens a direction for registration and support of business in foreign jurisdictions.

Today Patriot.Legal carries out registration of companies in the jurisdictions of Poland, Portugal, Great Britain, Slovakia, Estonia, USA (Delaware). The list of jurisdictions is constantly expanding.

Registered companies in foreign jurisdictions will allow you to structure your business reliably, in particular, use additional mechanisms to protect assets from raider seizures and illegal activities of law enforcement agencies, attract cheap loans to expand your business, and expand the list of counterparties.

We will be glad to help you expand your business to new markets.

 

Patriot.Legal is a legal and audit services company

Stopping of execution of the contested court decision in the economic process

Any proceeding involves the possibility of going through three instances (first instance, appeal, cassation) during the resolution of the dispute.

In commercial proceedings (as in other types of legal proceedings), the decision comes into legal force from the date of its adoption by the court of appeal (if an appeal was made).

If the court of appeal has made a decision to recover from you a certain amount of penny funds, but you do not agree with such decision and there are grounds for a cassation appeal, the issue of stopping the execution of the decision during the consideration of the case in the cassation instance becomes relevant.

What is it for? After the full text of the decision of the appellate instance has been drawn up and it will be published in the Unified State Register of Court Decisions (hereinafter referred to as the USRSR), the recoverer can apply to the court of first instance with an application for the issuance of a court order to collect pennies. The court of first instance considers such an application within five days from the date of its receipt. At the same time, the court of first instance may not wait until the case is received by it, but issue an order on the basis of the existing published resolution in the USRCD.

Immediately after the claimant receives such an order, he can immediately begin to take action to enforce the collection of penny funds, to seize accounts and property. In fact, even in 5-7 days, you can collect funds.

So that your accounts and property are not arrested, and then, with a positive decision of the cassation instance, you do not have to take forced actions to return the collected funds – you must act without delay.

How to act

1. Do not delay filing a cassation appeal.

Of course, sometimes you want to thoroughly write out and deduct a cassation appeal, and therefore this process is often stretched out for all the 20 days provided for a cassation appeal, and there you can additionally restore the deadlines from the date of delivery of the decision. But if you want to stop the execution of the court decision, such a legal delay will not be in your favor, since during all this time the decision is already subject to execution.

Therefore, immediately after the announcement of the appeal ruling and patents, it is necessary to prepare the basis for a future cassation appeal, and after the publication of the complain in the USRCD, immediately within 1-3 days, prepare and file a cassation appeal (at the same time, do not forget to indicate the grounds for cassation appeal provided for by Article 287 of the Code of Civil Procedure of Ukraine) …

2. Submit an application to suspend the execution of the judgment.

Such an application can be filed separately from the statement of claim or you can ask for the stopping of the execution of the court decision in the cassation appeal. Stopping the execution of a court decision or stopping its action must be motivated and contain reasonable grounds for suspending the execution of the court decision, which is confirmed by evidence.

The court of cassation will not stop the execution of the contested decision without proper and sufficient grounds to do so. In its jurisprudence, the Supreme Court indicates that the motives for stopping the execution of a decision or stopping its action, among other things, may be the opening of enforcement proceedings on account of the compulsory execution of court decisions, the impossibility of turning the execution of a decision in case of its cancellation or the need to take additional measures to restore violated rights …

So, in our own practice in one of the proceedings, the grounds for stopping the execution of the court decision were the substantiation of the materiality of the collection amount (almost UAH 2 million), for which enforcement proceedings were opened and the debtor’s accounts and property were seized, which led to the complication of his economic activities.

In another proceeding, such grounds for stopping the execution of the decision were the justification for open enforcement proceedings, and also that the recoverer himself has an open enforcement proceeding, in which he acts as a debtor, which has not been fulfilled within 3 months. As a result, not stopping the execution of the court decision will lead to the impossibility of turning the execution of the decision, since the recoverer does not have funds, and the recovered funds will go to repay the recoverer’s debt in another obligation.

3. Communication with performers.

This action is the most subjective, since it largely depends on the will and desire of the executor not to rush to issue a decision to suspend the execution of the court decision or refusal to transfer funds to the claimant.

If, however, the court of cassation issued a decision to suspend the execution of the court decision, such a decision must be immediately provided to the executor and demand from him to cancel the arrests.

As a result of quick and reasonable actions, it is possible to prevent the execution of the court decision and continue the usual business activities during the consideration of disputes in cassation.

The author is Lindyuk Svyatoslav, the lawyer of the corporate law practice and legal representation of Patriot.Legal.

Patriot.Legal is a company that provides legal and audit services.

Protection of rights and interests in court. Is it so long and expensive?

Everyone is used to think that litigation is a) expensive and b) long, and therefore there is a little hope that through the court it is possible to restore violated rights quickly and unprofitably .
What is the current and long-term situation in commercial courts, how much will it cost to file a lawsuit and how long will it take for the court to consider the lawsuit?

Is it expensive to litigate?

The costs of the proceedings can be divided into two parts: the payment of court fees and the costs of professional legal assistance ( a lawyer).
Court fee. If the claim in your case is the recovery of funds (property claim), you must pay 1.5% of the amount of the claim. For example, if you want to collect a debt from a counterparty for unfulfilled obligations under the contract in the amount of UAH 1 million, you need to pay UAH 15,000 court fees.
If the claim is of a non-material nature (for example, invalidation of the contract, invalidation of the decision of the general meeting of the business entity, etc.), the amount of the court fee is 1 subsistence level per able-bodied person (UAH 2,189 as of the date of publication).

Lawyer. Another category of costs is the services of a lawyer. The services of a lawyer in the court of first instance, as a rule, start from UAH 10,000. This amount will include analysis of the case, formation of a legal position, writing and filing a statement of claim, participation in court hearings. The formation of the cost of a lawyer’s services depends on the complexity and circumstances of the case, as well as the amount of the dispute.
Until November 2017, the payment for the services of a lawyer was non-refundable, and unlike the court fee, you could not collect these costs from the defendant. In the adopted amendments to the procedural legislation, the legislator provided for the possibility of recovering from the losing party in the dispute the costs of professional legal assistance (lawyer). In order to exercise this right, it is necessary to submit a preliminary calculation of court costs in the filed statement of claim, and not later than 5 days after the court decides to submit to the court a calculation of court costs, which must include an act of services and a contract .

 

How long to litigate?

It must be said that the courts of commercial jurisdiction most clearly adhere to the deadlines for proceedings. Disputes can be considered by the Commercial Court in the form of general and simplified (without holding court hearings) proceedings.
The deadline for consideration of the case by the court of first instance of the general proceedings is 105 days: within 5 days from the date of filing the claim proceedings are opened, 60 days are given for preparatory proceedings (but in exceptional cases may be extended for 30 days), within 30 days the essence of the dispute, and finally within 10 days from the date of the decision is its full text.
The maximum consideration of the term of consideration of the case in the simplified procedure is 70 days: within 5 days from the date of filing the claim proceedings are opened, within 60 days the dispute is considered, and at the end within 5 days the full text of the decision.

Conclusion. There is no doubt that the best way for the parties to resolve a dispute is through mediation (dispute settlement procedure with the participation of a neutral mediator) and pre-trial settlement of the dispute. This will save time, nerves and can maintain a good relationship with the contractor. But there are cases when the other party does not want to go to conciliation, and in such cases the legal way to protect their rights is to go to court. If you dare to defend your rights in court, such protection in the commercial court of first instance will be about three months, and at the end of the trial, in case of victory, you will be reimbursed.

Author Lindyuk Svyatoslav, lawyer of corporate law practice and court representation Patriot.Legal.

Patriot.Legal is a company that provides legal and audit services.

Innovations in the Tax Code of Ukraine

The new tax reality of 2020

First of all, the norms of the Law attract attention, which have already entered into force, and the observance of which can already make life easier for taxpayers and cause trouble, in case of violation of legal requirements.

Among the main current innovations:

 

  • New possibilities of functioning of an electronic office;
  • Improved approach to calculating the term of tax payment: if the deadline falls on a weekend or holiday, the taxpayer has the legal right to pay the tax liability on the next business day following the weekend;
  • Changes in the tax audit: restrictions on making changes to the schedule of documentary scheduled inspections, the possibility of stopping the audit of all categories of taxpayers, etc .;
  • Changes in taxpayer accounting;
  • Changes in debt collection;
  • New rules for limitation periods;
  • New opportunities to appeal some decisions of regulatory authorities;
  • Innovations in the payment of corporate income tax, value added tax, personal income tax, real estate tax.

 

Taxpayers need to carefully review the new rules for accounting for taxpayers, the timing, order and procedure for payment of tax liabilities, the size of tax rates and penalties.

There is no doubt that the legislator sought to bring the Ukrainian tax system and tax relations in line with generally accepted international standards. We will see in time how successfully and efficiently the updated Tax Code will work. But even today, taxpayers and state fiscal authorities need to take care of compliance with the law, as well as showing respect for each of the subjects of tax relations.

How to get a license for financial activities?

There have been some changes in the procedure for issuing licenses for financial activities. Instead of Natskomfinposlug of Ukraine from 01.07.2020 licenses are issued by the National Bank of Ukraine (NBU). From now on, it will act as a regulator of insurance companies, pawn shops and other institutions. At the same time, all licenses previously issued by Natskomfinposlug are valid, so licenses will not be automatically revoked.

 

What types of licenses does the National Bank have from now on?

You should contact this institution if you plan to do:

 

  • factoring;

 

  • lending, financial loans;

 

  • financial leasing;

 

  • deposits for credit unions;

 

  • insurance;

 

  • management of the building financing fund / real estate fund;

 

  • administration of the purchase of goods in groups, which attracts funds from individuals.

 

NBU licenses are indefinite. For example, to obtain a license for financial leasing, you need to go through two stages: company registration (inclusion to the register) and issuance of a license.

In this case, the applicant may be included in the register of I – financial institutions, or the register II – legal entities that are not financial institutions. If the company is included in Register II, it will be able to work only in the field of financial leasing.

 

Documents for obtaining a license

To obtain the appropriate license, the company must prepare an application for a license and submit it to the NBU. The following documents should be attached to the application:

 

  • Documents on financial statements. The information must be submitted as of the last day of the quarter preceding the submission of the application. All data must be pre-verified by an auditor who has the right to conduct an audit of the financial institution.

 

  • Questionnaire about the head of the institution and a questionnaire concerning the chief accountant. If the company has a supervisory board, it is necessary to submit a questionnaire of the head of each member of the supervisory board.

 

  • Two copies of the description of documents.

 

  • The applicant must submit a document confirming that he has paid for the services of the license.

 

After reviewing the documents, the NBU may issue a license or refuse to issue a license. It is also necessary for the decision to supervise over the company’s activities in the financial services market.

If the license is denied, the applicant will be given a written response. It states the reason for the refusal. A non-banking institution may re-apply for a license within 90 days and provided that the grounds for refusal have been removed.

It is planned to switch to electronic reporting and simplify it a bit, for example for insurance companies. If the institution has previously engaged in certain licensed activity, but also wants to engage in financial activities, it can also apply for a license. If an institution already provides financial services and wants to expand its activities, it will have to submit only those documents that it has not previously submitted to the NBU. This is done to make it easier for companies to access new markets.

Procedure of the penalties under Article 336 of the Code of Civil Procedure

When initiating a property dispute, the lawyer, in addition to assessing the victory of his legal position, should think about the prospective recovery of funds in case of victory. The classic scheme is to expect when the debtor will receive at least some money from the counterparties or his debtors on the arrested bank accounts.

However, there is another way.

The Commercial Procedure Code of Ukraine (hereinafter referred to as the Code of Civil Procedure of Ukraine) introduced in 2017 a new mechanism for enforcing a court decision on recovery of funds – through recovery of funds from third parties who have debts to the debtor.

Such a mechanism is provided by Article 336 of the Code of Civil Procedure, which provides for the possibility of foreclosure on funds belonging to other persons and real estate, the ownership of which is not registered in the prescribed manner.

The application of such a procedure is relevant when enforcement proceedings are opened, seizures are imposed on the accounts, but debt collection is not carried out because of zeros on the accounts.

Recovery procedure

The first thing you need is a decision that has come into force to recover money from the debtor.

The next most important step is to search for the undisputed debt or to confirm the debt by a court decision that has entered into force that third parties have before the debtor.

After such a debt has been identified, we apply to the court – submit an application for recovery of funds belonging to the person who has a debt to the debtor. Such an application is submitted as part of your case, in which a decision was made to recover the money. Such a statement must indicate the decision on the basis of which the debtor is recovered, evidence of non-enforcement of the judgment on the date of application, evidence of a valid undisputed debt of a third party to the debtor or a judgment from which such debt is seen.

In its conclusions, the Supreme Court notes that the subject of such applications is 1) non-repayment debt to the debt collector and 2) the fact that there is an actual third party debt to the debtor, as evidenced by relevant evidence (including court decisions).

We recommend you to contact a professional lawyer in such procedures as finding the debt of third parties to the debtor, compliance with all procedural aspects, obtaining evidence of the relevance of the debt, as well as the correct wording of the claim in such a statement . 

In addition, the costs of his services can also be indicated as the costs of professional legal assistance, which are reimbursable by the debtor when filing the Application.

 

Author Lindyuk Svyatoslav, lawyer of corporate law practice and court representation Patriot.Legal.

Patriot.Legal is a company that provides legal and audit services.

Patriot.Legal opens new direction of registration of companies in foreign jurisdictions

Continuing its growth and rapid development, the Patriot.Legal team announces the expansion of corporate law practice and opens a direction for registration and support of business in foreign jurisdictions.

Today Patriot.Legal carries out registration of companies in the jurisdictions of Poland, Portugal, Great Britain, Slovakia, Estonia, USA (Delaware). The list of jurisdictions is constantly expanding.

Registered companies in foreign jurisdictions will allow you to structure your business reliably, in particular, use additional mechanisms to protect assets from raider seizures and illegal activities of law enforcement agencies, attract cheap loans to expand your business, and expand the list of counterparties.

We will be glad to help you expand your business to new markets.

 

Patriot.Legal is a legal and audit services company

Stopping of execution of the contested court decision in the economic process

Any proceeding involves the possibility of going through three instances (first instance, appeal, cassation) during the resolution of the dispute.

In commercial proceedings (as in other types of legal proceedings), the decision comes into legal force from the date of its adoption by the court of appeal (if an appeal was made).

If the court of appeal has made a decision to recover from you a certain amount of penny funds, but you do not agree with such decision and there are grounds for a cassation appeal, the issue of stopping the execution of the decision during the consideration of the case in the cassation instance becomes relevant.

What is it for? After the full text of the decision of the appellate instance has been drawn up and it will be published in the Unified State Register of Court Decisions (hereinafter referred to as the USRSR), the recoverer can apply to the court of first instance with an application for the issuance of a court order to collect pennies. The court of first instance considers such an application within five days from the date of its receipt. At the same time, the court of first instance may not wait until the case is received by it, but issue an order on the basis of the existing published resolution in the USRCD.

Immediately after the claimant receives such an order, he can immediately begin to take action to enforce the collection of penny funds, to seize accounts and property. In fact, even in 5-7 days, you can collect funds.

So that your accounts and property are not arrested, and then, with a positive decision of the cassation instance, you do not have to take forced actions to return the collected funds – you must act without delay.

How to act

1. Do not delay filing a cassation appeal.

Of course, sometimes you want to thoroughly write out and deduct a cassation appeal, and therefore this process is often stretched out for all the 20 days provided for a cassation appeal, and there you can additionally restore the deadlines from the date of delivery of the decision. But if you want to stop the execution of the court decision, such a legal delay will not be in your favor, since during all this time the decision is already subject to execution.

Therefore, immediately after the announcement of the appeal ruling and patents, it is necessary to prepare the basis for a future cassation appeal, and after the publication of the complain in the USRCD, immediately within 1-3 days, prepare and file a cassation appeal (at the same time, do not forget to indicate the grounds for cassation appeal provided for by Article 287 of the Code of Civil Procedure of Ukraine) …

2. Submit an application to suspend the execution of the judgment.

Such an application can be filed separately from the statement of claim or you can ask for the stopping of the execution of the court decision in the cassation appeal. Stopping the execution of a court decision or stopping its action must be motivated and contain reasonable grounds for suspending the execution of the court decision, which is confirmed by evidence.

The court of cassation will not stop the execution of the contested decision without proper and sufficient grounds to do so. In its jurisprudence, the Supreme Court indicates that the motives for stopping the execution of a decision or stopping its action, among other things, may be the opening of enforcement proceedings on account of the compulsory execution of court decisions, the impossibility of turning the execution of a decision in case of its cancellation or the need to take additional measures to restore violated rights …

So, in our own practice in one of the proceedings, the grounds for stopping the execution of the court decision were the substantiation of the materiality of the collection amount (almost UAH 2 million), for which enforcement proceedings were opened and the debtor’s accounts and property were seized, which led to the complication of his economic activities.

In another proceeding, such grounds for stopping the execution of the decision were the justification for open enforcement proceedings, and also that the recoverer himself has an open enforcement proceeding, in which he acts as a debtor, which has not been fulfilled within 3 months. As a result, not stopping the execution of the court decision will lead to the impossibility of turning the execution of the decision, since the recoverer does not have funds, and the recovered funds will go to repay the recoverer’s debt in another obligation.

3. Communication with performers.

This action is the most subjective, since it largely depends on the will and desire of the executor not to rush to issue a decision to suspend the execution of the court decision or refusal to transfer funds to the claimant.

If, however, the court of cassation issued a decision to suspend the execution of the court decision, such a decision must be immediately provided to the executor and demand from him to cancel the arrests.

As a result of quick and reasonable actions, it is possible to prevent the execution of the court decision and continue the usual business activities during the consideration of disputes in cassation.

The author is Lindyuk Svyatoslav, the lawyer of the corporate law practice and legal representation of Patriot.Legal.

Patriot.Legal is a company that provides legal and audit services.

Protection of rights and interests in court. Is it so long and expensive?

Everyone is used to think that litigation is a) expensive and b) long, and therefore there is a little hope that through the court it is possible to restore violated rights quickly and unprofitably .
What is the current and long-term situation in commercial courts, how much will it cost to file a lawsuit and how long will it take for the court to consider the lawsuit?

Is it expensive to litigate?

The costs of the proceedings can be divided into two parts: the payment of court fees and the costs of professional legal assistance ( a lawyer).
Court fee. If the claim in your case is the recovery of funds (property claim), you must pay 1.5% of the amount of the claim. For example, if you want to collect a debt from a counterparty for unfulfilled obligations under the contract in the amount of UAH 1 million, you need to pay UAH 15,000 court fees.
If the claim is of a non-material nature (for example, invalidation of the contract, invalidation of the decision of the general meeting of the business entity, etc.), the amount of the court fee is 1 subsistence level per able-bodied person (UAH 2,189 as of the date of publication).

Lawyer. Another category of costs is the services of a lawyer. The services of a lawyer in the court of first instance, as a rule, start from UAH 10,000. This amount will include analysis of the case, formation of a legal position, writing and filing a statement of claim, participation in court hearings. The formation of the cost of a lawyer’s services depends on the complexity and circumstances of the case, as well as the amount of the dispute.
Until November 2017, the payment for the services of a lawyer was non-refundable, and unlike the court fee, you could not collect these costs from the defendant. In the adopted amendments to the procedural legislation, the legislator provided for the possibility of recovering from the losing party in the dispute the costs of professional legal assistance (lawyer). In order to exercise this right, it is necessary to submit a preliminary calculation of court costs in the filed statement of claim, and not later than 5 days after the court decides to submit to the court a calculation of court costs, which must include an act of services and a contract .

 

How long to litigate?

It must be said that the courts of commercial jurisdiction most clearly adhere to the deadlines for proceedings. Disputes can be considered by the Commercial Court in the form of general and simplified (without holding court hearings) proceedings.
The deadline for consideration of the case by the court of first instance of the general proceedings is 105 days: within 5 days from the date of filing the claim proceedings are opened, 60 days are given for preparatory proceedings (but in exceptional cases may be extended for 30 days), within 30 days the essence of the dispute, and finally within 10 days from the date of the decision is its full text.
The maximum consideration of the term of consideration of the case in the simplified procedure is 70 days: within 5 days from the date of filing the claim proceedings are opened, within 60 days the dispute is considered, and at the end within 5 days the full text of the decision.

Conclusion. There is no doubt that the best way for the parties to resolve a dispute is through mediation (dispute settlement procedure with the participation of a neutral mediator) and pre-trial settlement of the dispute. This will save time, nerves and can maintain a good relationship with the contractor. But there are cases when the other party does not want to go to conciliation, and in such cases the legal way to protect their rights is to go to court. If you dare to defend your rights in court, such protection in the commercial court of first instance will be about three months, and at the end of the trial, in case of victory, you will be reimbursed.

Author Lindyuk Svyatoslav, lawyer of corporate law practice and court representation Patriot.Legal.

Patriot.Legal is a company that provides legal and audit services.

Innovations in the Tax Code of Ukraine

The new tax reality of 2020

First of all, the norms of the Law attract attention, which have already entered into force, and the observance of which can already make life easier for taxpayers and cause trouble, in case of violation of legal requirements.

Among the main current innovations:

 

  • New possibilities of functioning of an electronic office;
  • Improved approach to calculating the term of tax payment: if the deadline falls on a weekend or holiday, the taxpayer has the legal right to pay the tax liability on the next business day following the weekend;
  • Changes in the tax audit: restrictions on making changes to the schedule of documentary scheduled inspections, the possibility of stopping the audit of all categories of taxpayers, etc .;
  • Changes in taxpayer accounting;
  • Changes in debt collection;
  • New rules for limitation periods;
  • New opportunities to appeal some decisions of regulatory authorities;
  • Innovations in the payment of corporate income tax, value added tax, personal income tax, real estate tax.

 

Taxpayers need to carefully review the new rules for accounting for taxpayers, the timing, order and procedure for payment of tax liabilities, the size of tax rates and penalties.

There is no doubt that the legislator sought to bring the Ukrainian tax system and tax relations in line with generally accepted international standards. We will see in time how successfully and efficiently the updated Tax Code will work. But even today, taxpayers and state fiscal authorities need to take care of compliance with the law, as well as showing respect for each of the subjects of tax relations.

How to get a license for financial activities?

There have been some changes in the procedure for issuing licenses for financial activities. Instead of Natskomfinposlug of Ukraine from 01.07.2020 licenses are issued by the National Bank of Ukraine (NBU). From now on, it will act as a regulator of insurance companies, pawn shops and other institutions. At the same time, all licenses previously issued by Natskomfinposlug are valid, so licenses will not be automatically revoked.

 

What types of licenses does the National Bank have from now on?

You should contact this institution if you plan to do:

 

  • factoring;

 

  • lending, financial loans;

 

  • financial leasing;

 

  • deposits for credit unions;

 

  • insurance;

 

  • management of the building financing fund / real estate fund;

 

  • administration of the purchase of goods in groups, which attracts funds from individuals.

 

NBU licenses are indefinite. For example, to obtain a license for financial leasing, you need to go through two stages: company registration (inclusion to the register) and issuance of a license.

In this case, the applicant may be included in the register of I – financial institutions, or the register II – legal entities that are not financial institutions. If the company is included in Register II, it will be able to work only in the field of financial leasing.

 

Documents for obtaining a license

To obtain the appropriate license, the company must prepare an application for a license and submit it to the NBU. The following documents should be attached to the application:

 

  • Documents on financial statements. The information must be submitted as of the last day of the quarter preceding the submission of the application. All data must be pre-verified by an auditor who has the right to conduct an audit of the financial institution.

 

  • Questionnaire about the head of the institution and a questionnaire concerning the chief accountant. If the company has a supervisory board, it is necessary to submit a questionnaire of the head of each member of the supervisory board.

 

  • Two copies of the description of documents.

 

  • The applicant must submit a document confirming that he has paid for the services of the license.

 

After reviewing the documents, the NBU may issue a license or refuse to issue a license. It is also necessary for the decision to supervise over the company’s activities in the financial services market.

If the license is denied, the applicant will be given a written response. It states the reason for the refusal. A non-banking institution may re-apply for a license within 90 days and provided that the grounds for refusal have been removed.

It is planned to switch to electronic reporting and simplify it a bit, for example for insurance companies. If the institution has previously engaged in certain licensed activity, but also wants to engage in financial activities, it can also apply for a license. If an institution already provides financial services and wants to expand its activities, it will have to submit only those documents that it has not previously submitted to the NBU. This is done to make it easier for companies to access new markets.