Our lawyers changed charter of an NGO in Ukraine

Legal services of NGO's charter changing

For the last two years our law firm has supported more than a dozen of projects related to amendment of charters of non-governmental organizations in Ukraine.We are talking about fairly large organizations, sports federations, associations of medical workers, organizations of entrepreneurs, uniting thousands of members.

The need for such changes is due to several circumstances.

Firstly, in January 2013, the Law of Ukraine “On Public Associations” entered into force, which substantially changed the requirements for the activities of public organizations. The concept of a local cell, local, regional and international status of public associations and much more have been retired. For more detail, read the material of our lawyer.

The aforementioned law provided five years for existing organizations to bring their charters in line with the new requirements. This deadline ends on January 1, 2018, so it is not surprising that activity is increasing.

Secondly, in mid-2015, significant changes occurred in the Tax Code of Ukraine, namely in the articles governing the activities of non-profit, non-commercial organizations. So to replace Art. 157 of the Code, which fully determined the status, types of income of nonprofit organizations, the procedure for including associations in the register of nonprofit organizations, art. 133 of the Code, which slightly changed the approach to determining a nonprofit organization, established new criteria. We also wrote about this in a separate comment.

This summer, another good reason was added to amend the charter of a public association. On July 16, 2016, the Resolution of the Cabinet of Ministers of Ukraine dated July 13, 2016 No. 440 “Procedure for maintaining the register of non-profit institutions and organizations, the inclusion of non-profit enterprises, institutions and organizations in the Register and removal from the Register” entered into force. The resolution was adopted in compliance with the requirements of the Law of Ukraine of 07.17.2015r. No. 652-VII “On Amending the Tax Code of Ukraine Concerning the Taxation of Nonprofit Organizations” (hereinafter referred to as Law No. 652) with the aim of bringing documents of nonprofit organizations into line with the requirements of Clause 13.34 of Article 134 of the Tax Code of Ukraine for inclusion in the new Register.

In short, we are talking about creating a new registry of nonprofit organizations. The need for this step by the state has been many years in the making . A huge number of non-profit organizations and even more amendments to the Tax Code registered much earlier than the Law of 2013, made no haste to amend their charter. We had to see the charters of organizations registered in the 90s and 2000s - these documents are so outdated that it was no longer possible to carry out activities on their basis.

Now, fiscal authorities have the opportunity to annul the nonprofit status of all organizations that until January 1, 2017 will not submit their charters for verification and confirm their compliance.Strictly speaking, from the beginning of 2017, only those organizations that will submit their statutory documents for verification during 2016 and successfully pass it will keep their non-profit status.

The requirements to the charters of public associations are not overly complicated, however, as with any professional matter, special knowledge is indispensable. Our company proves by its activity the fact that with us this work will be carried out as quickly and as successfully as possible. Our services are optimized both for large and active non-profit organizations, as well as for small “pocket” associations.

Details about the service for bringing the charter of a public organization in accordance with the requirements of the law can be found here. If you are interested in such work for a charitable foundation, the information is available here.

Publication date: 10/08/2016

About author

Name: Volodymyr Gurlov

Position: Partner

Education: National Academy of the Security Service of Ukraine

Knowledge of languages: Russian, Ukrainian, English

Email: [email protected]

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