Factoring has become an indispensable link in the world’s modern financial relations by opening new one’s opportunities for enterprises in the field of circulation of financial resources.
Implementation of factoring operations allows entrepreneurs to increase liquidity, decide problems with gathering funds for unfulfilled accounts, as well as to expand their activities.
Licensing and Proceedings providing activities factoring services are carried out in accordance with the Licensing and Registration Regulations provider’s financial services and conditions their implementation of provision activities financial services, regulatory and legal Acts in the industry finance and others regulatory acts of the state regulator, which are regularly changed and supplemented, that requires constant control and monitoring situations.
Understanding process licensing factoring activity is important for companies and specialists who plan to do business in this industry.
Therefore, the team is qualified experts “Prikhodko and Partners” company is always ready to accompany you through underwater stones and difficulties in financial legislation.
In this, we will reveal the article’s concept of factoring and registration requirements factoring companies in Ukraine.
Basically, factoring – is the assignment of rights (monetary requirements), where the factor transfers funds available client for a fee (in accordance with the terms of the contract), and the client transmits factors your right to money requirements to the debtor.
Banks or other financial institutions that received corresponding licenses from the regulatory body have the right to carry out factoring operations.
Registration requirements factoring companies
Companies that have the intention to conduct provision activity factoring services should apply to the National Bank of Ukraine (hereinafter referred to as the Regulator) and respond to requirements regarding:
- structures property and system management;
- financial status and sources origin funds owner’s essential participation and other participants who carried out contributions to the authorized capital regardless of their size;
- flawless business reputation and professional suitability owner’s essential participation, managers, chief accountant, and key persons the applicant;
- compliance formed authorized capital requirements legislation;
- audit approved report according to international standards;
- compliance requirements financial legislation;
- compliance internal documents the applicant to the acts of the Regulator;
- politician prevention, detection, and management of conflicts of interest;
- business plan (developed at least for the current year);
- premises, accounting and registration systems, trademarks, and websites.
The applicant is also obliged to form statutory capital in the amount of at least 3 million hryvnias, paid in cash form.
Decision on extradition license The National Bank accepts no more than 30 workers per term days from the date of receipt of the application and a complete package of documents.
The regulator has the right to continue consideration of the application, but no more than for 30 workers’ days, if necessity checks the credibility of submitted documents/information and/or receiving additional data required for acceptance solution.
For consideration of the application and documents, the applicant is obliged to pay a fee in the amount specified by the National Bank.
License gains effective from the date of entry by the Regulator to the relevant of the register and is valid throughout the territory of Ukraine.
Not a banking financial institution that has a license to provide financially has the right to provide factoring services settlement activity overdue arrears in interest’s other persons under the condition inclusion in the register collector’s companies.
Law company “Prikhodko and Partners ” is ready to provide legal help of solutions as separate related tasks with creation factoring companies, and to ensure complex accompaniment businesses such as financial companies.