New law on licensing of economic activity

On 2 March 2015, the Verkhovna Rada adopted the Law of Ukraine on licensing which significantly simplified receipt of licenses, reduced the number of economic activities subject to licensing, established control in the licensing area. The Law will become effective on 1 July 2015.

The number of economic activities which require licensing was halved, including some that were consolidated. No licensing is required for, inter alia, construction activities (except for the objects of IV and V levels of difficulty), trade in pesticides and agrochemicals, processing of blood and its components, processing of scrap ferrous and non-ferrous metals.

The Law allows an applicant to submit its application to the licensing authority electronically via means of telecommunication in accordance with the requirements of laws on electronic documentation submission.

As of now, the licensing authority issues the license in electronic form. Nevertheless, the licensing authority, if requested by the applicant or the licensee, may issue the license (its copy) in paper form.

The license, irrespective of the type of economic activity, may be issued for unlimited term. A one-off payment in the amount of one minimal wage is required for issuance of the license. Renewal of the license is free of charge.