Obtained a leasing license

In summer 2018, a client applied to us – the Kiev office of an international company specializing in renting out and leasing the automobile transport. 

Although the client’s company had been engaged already in economic activity in Ukraine upon the moment the client applied to us, that activity was limited only to hiring out the transport vehicles.

At the same time, the financial leasing needed a number of regulatory agreements, and therefore, before getting a license, the client wanted to have full understanding of legal requirements raised for lessors. And the client also wanted to make out the difference of financial leasing from its other types (for example, operational), and other procedural matters.

In case the planned activity fell under definition of a financial service, the client expected full legal support in getting a license and other permission document defined for leasing companies in Ukraine.

Difficulties that arose in the process

Since the lawyers had to do with an affiliated company of an international structure in which there were single internal standards, it was important to select correctly an auditor. He should comply not only with international requirements, but also with criteria of selecting our client’s contractors.

The client’s website was to contain considerable amount of information (for example, about financial factors, information about senior management etc.), and therefore it was necessary to organize correct placement of obligatory information, and with that, not to exceed the required amount, since the client referred a part of information to the sensitive category.

Upon the moment of including in the register of lessors, the standard quarterly accounting in the paper form was changed for electronic form. Many business entities and the regulator himself proved to be unprepared for that, and that had an effect on their work. Upon the moment of submission of documents for getting a license, it turned out that the accounting for the previous quarter that the client provided, the National Committee of Financial Services did not receive for technical reasons, and that became a hindrance for getting a license.

Since the client doubted whether it was required to get a license, the work on the project began with consulting. Based on what view of the future activity the management of the Ukrainian company had and based on experience of similar business in other countries, our lawyers came to the conclusion: it was required to get a financial license. Since the leasing was to be the only financial service, we suggested for the client the following option: getting a leasing license without status of financial company; that gives similar rights, but the procedure is considerably simpler.

Operations procedure for getting a license

The work on the project was performed in the two main stages: registering the company as a lessor, and actually getting a financial license.

At the first stage, our lawyers, based on information provided by the client, developed the full package of documents that they submitted to the National Committee of Financial Services. While waiting for decision about including in the register, preparation for the second stage began.

At first, selection of auditor was organized who was to perform the checking of client’s financial information in compliance with the Ukrainian financial law, and also client’s requirements for compliance.

The website was being filled actively, too, in compliance with requirements of the licensing conditions and other normative acts. At client’s wish, only the main information was selected, without excess of financial information and the like.

Upon the moment when all the documents were received/developed for getting a financial license, a rather unusual problem appeared. Although the client did provide the financial accounting in compliance the current law, the National Committee of Financial Services did not receive it. And as a consequence, enforcement actions were applied. Such a situation made the submission of documents for a license impossible, which not simply delayed the procedure of submitting, but it could entail the necessity of the repeated getting an auditors’ report, for it is valid for 1 quarter only. That problem was solved by means of a dialogue with the National Committee of Financial Services, including its technical department.

The documents were submitted in time, which allowed getting the license after 2 weeks already.

What value did the client get from us?

  • Full consulting support of the licensing and of lessors’ activity;
  • Getting all the necessary permission documents that are required by the current law;
  • Solving non-standard problems which are not provided in the law directly but which indirectly influence the possibility of getting a license (for example, the impossibility of submission of financial accounting for technical reasons).

Do you want to get a license for leasing? Please call: 0 800 330 967

Contact the author

ANY QUESTIONS LEFT?

Don't waste your time and entrust your legal matters to the team of professionals!

Learn about the price

Related materials

ASK LAWYER A QUESTION
SIDEBAR MENU
RELEVANT EXPERIENCE RELEVANT PUBLICATIONS