Taras Miroshnychenko

Head of practice

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miroshnychenko@prikhodko.com.ua

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Head of Corporate Law and Fintech Practice. Expert in the creation and reorganization of companies, support of M&A transactions, as well as legal support for opening and running a business in the EU, Asia, and North America.

Farm registration

State registration gives a farm (hereinafter referred to as a farm) the status of a legal entity and allows it to carry out activities on legal grounds. Entering information into the unified register about a farm is carried out in the same manner as for any other legal entity or individual entrepreneur. The only difference is that a farm can be registered in two main forms, namely as a legal entity or without such legal status. More details on this can be found in the article below.

Who can register a farm?

Farm registration

A farm can be established only by citizens of Ukraine who:

firstly, have reached the age of 18;
secondly, are fully capable;
thirdly, have adult and capable members of their own family who will later become members of the family farm (to establish a family farm).

It is worth emphasizing that the criteria for becoming the founder of a family farm and its member are separated. In accordance with the provisions of the Law of Ukraine “On Farming”, participants in a family farm can also be the second spouse, the parents of the founder, his children aged 14 and over and other close relatives. It is also important that to establish a family farm, a person must have a land plot intended for carrying out the relevant activity (production of marketable agricultural products, for example).

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What documents are required to register a farm?

For state registration of a family farm (as a legal entity), the founder or authorized person submits the following package of documents to the state registrar:

application for state registration (of the form established by the Ministry of Justice);
charter (in two copies);
decision to establish a family farm (in the form of minutes of the meeting of its founders);
documents for a land plot for the farm;
schematic information about the ultimate beneficial owners (those who have 25% or more in the authorized capital).

Important to know! A family farm can be registered by law as an individual entrepreneur (without the status of a legal entity). In this case, the list of documents will differ only in that, firstly, it will not be necessary to develop a charter, and secondly, instead of a decision to establish it, it will be necessary to provide the state registrar with an agreement on the establishment of a family farm. To learn more, order a consultation with our lawyer.

It will also be useful: Invitation for a foreigner to Ukraine

What is the procedure for registering a farm?

Depending on the status of a family farm, its registration will involve several stages:

stage one — concluding an agreement between family members to create a family farm or drawing up a declaration and their notarization/development of the charter and the protocol on creation;
stage two — preparation and submission to the state registrar of the necessary documentation for entering information into the unified register, payment of an administrative fee;
stage three — submission of an application to the tax service and registration (for a family family farm, a simplified taxation system is best suited, namely – group 4 of the single tax);
stage four — obtaining an extract from the single state register.

Farm — payer of the single tax of group 4: what are the features?

The main condition for applying the 4th group of the single tax is, firstly, the registration of the farm in a legal manner, and secondly, the presence of the status of an agricultural producer. In addition, in order to be registered in the simplified tax system, a farm must meet the following criteria:

the share of income received from the sale of its own agricultural products must be at least 75% of the total income of the farm for the year;
the farm must own, lease or register the right of permanent use of land or water fund lands (the total area must not exceed 20 hectares).

Important! Payment of the single tax replaces the farm’s income tax, land tax, personal income tax, as well as rent for special water use. It is calculated as a percentage of the normative monetary value of 1 hectare of land (arable land, hayfields, pastures) and is 10% (first and second quarter), 50% (third quarter) and 30% (fourth quarter).

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Legal support for farm registration: what do we offer?

Legal support from the Law Firm “Prikhodko and Partners” is aimed at ensuring the legality, correctness and efficiency of all procedures for registering a farm. Our qualified lawyers, understanding the main subtleties and complexities of the process, are ready to provide interested clients with:

Farm registration

Who can register a farm?

What documents are required to register a farm?

What is the procedure for registering a farm?

Farm — payer of the single tax of group 4: what are the features?

Legal support for farm registration: what do we offer?

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Andrey Prikhodko