How to Convert a Private Enterprise (PE) into an LLC: Reorganization Procedure
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Due to the repeal of the Commercial Code of Ukraine, certain legal entities established under its provisions, particularly private and foreign enterprises, now find themselves in a zone of legal transformation. According to the law enacted on August 28, 2025, you are required to bring your constituent documents into compliance with the Civil Code of Ukraine. In effect, this means undergoing reorganization into the form of a limited liability company (LLC).
Although the transition period lasts until August 2028, the "red zone" for business begins now, in 2026. Why shouldn't you wait until 2028? Many PE owners believe they still have two years. However, the legal reality is different. The process of converting into a company takes several months, and as 2028 approaches, the workload on registrars and notaries will increase tenfold. The cost of urgent services will skyrocket, and queues will drag the process out for six months. Furthermore, banks, counterparties (especially large retail chains), and investors are already treating PEs with caution.
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