The draft law "On amendments to some legislation regulations of Ukraine on the accreditation of separate subdivisions of foreign legal entities on the territory of Ukraine" (No. 5148) is imperfect, controversial and it complicates the procedure of the legalization of foreign representative offices in Ukraine, Olha Herasymova, lawyer of the Adler and Partners advocatory bureau has said.
“Separate subdivisions of the above-mentioned legal entities will in
actual fact not be able to fulfill their obligations in line with the
draft law, as the draft law doesn’t clearly determine the organ
authorized to fulfill the accreditation of subdivisions of foreign
representative offices,” she said in an interview with Interfax-Ukraine.
As the lawyer explained, this concerns the clause of the draft law
that foresees that separate subdivisions of foreign legal entities, to
legalize their activity in Ukraine, should obtain accreditation and
then have their information included on the state register of
entrepreneurs.
According to item 10 of the draft law, only the authorized organ that conducted the accreditation can provide such information.
In addition, Herasymova said that the clause of the draft law on
obligatory accounting and financial reports of subdivisions of foreign
representative offices to the tax authorities of Ukraine gives equal
treatment to the two types of representative offices: those conducting
and not conducting business activity in Ukraine.
As the lawyer said, according to the instruction, a representative
office that doesn’t conduct business activity on the territory of
Ukraine is not required to register with the tax agency of Ukraine, as
it performs services only in interests of a foreign subject.
As reported, the government registered recently the draft law “On
amendments to some legislation regulations of Ukraine on the
accreditation of separate subdivisions of foreign legal entities on the
territory of Ukraine” (No. 5148) in the parliament.
According to the draft law, the Cabinet of Ministers of Ukraine
proposed to charge various subdivisions and offices of foreign legal
entities accredited on the territory of Ukraine with performing
accounting and financial reports in accordance with national
legislation.
