Recently, the #corporate #seal #requirement for #legal #entities and #individual #entrepreneurs has been #lifted in Ukraine. #State #authorities are #prohibited from requiring the corporate seal use on the documents. Now, the documents shall, in order to be deemed #valid, be only signed by the duly #authorized person.
The Law of Ukraine No. 1982 VIII “On Amendments to Several Legislative Acts of Ukraine regarding the Corporate Seal Use by Legal Entities and Individual Entrepreneurs” entered into force on 19 July 2017. Thus, the corporate seal requirement was lifted for Ukrainian business entities which should simplify starting a business in Ukraine.
In particular, the Commercial Code of Ukraine provides that the corporate seal shall not be an essential requirement for documents to be submitted to the state authorities on behalf of the business entity. Moreover, the state authorities are prohibited from requesting the corporate seal imprint on the documents.
The Law on lifting the corporate seal requirement in Ukraine has excluded provisions concerning the obligatory corporate seal use from a number of legislative acts. Now, to be deemed valid, the documents must be signed by the duly authorized person.
In addition, administrative liability applies to the persons requesting the corporate seal imprint on the company documents. The officials taking such actions shall be subject to a fine of 50 to 100 untaxed minimum incomes of citizens (UAH 850-1,700).
The Law on lifting the corporate seal requirement for business entities was passed in March 2017 by the Verkhovna Rada of Ukraine. On 14 April, the President signed the law.
The authors of the draft law clarified in the accompanying notes to the Law that a transition from compulsory to voluntary corporate seal use for business entities had started three years ago and caused a lot of confusion. The relevant provisions on corporate seal requirement had been replaced not in all laws and sometimes compulsory use of the corporate seal was required if the company had one, and not if the company had decided to do so. Therefore, the companies had a difficult time distinguishing when the seal was required and when it was not, which enabled officials to request the documents bearing a seal.