Regulatory Update - Business Now Easier in Ukraine

On 19 July 2017 the Law introducing amendments to some regulatory acts of Ukraine regarding the use of seals by legal entities and individual entrepreneurs (the Law # 1982-VIII) shall enter into force. The Law aims at further simplification of conducting business in Ukraine and abolishes the use of corporate seals. 
Thus, the Law specifically states that seal impression on a document has no legal implications and no document to be submitted to the state authorities should have a seal impression on it as its obligatory attribute. Notary attestation of a signature on a document cannot also be required in the absence of a seal unless such requirement is specifically provided for by the Law. Thus, powers of attorney issued in behalf of a company and copies of documents should only be attested by a signature of a company’s authorized official. 
Any demands on the part of the state or local authorities for seal impression on documents or their notary attestation, in cases when such attestation is not explicitly required by the law, shall now be deemed as a punishable administrative offence.
The above changes make the reliance on business partners acting in good faith more important. However, in order to avoid risks of fraudulent business practices, the attention should be given to verification of signatories’ rights before entering into any contractual relationships.