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Our firm acted as legal advisor on the matters of financial lease company licensing in Ukraine

In the second half of 2017, our company provided legal support and assistance to a Client from the Kharkiv region in obtaining a financial services license. The key areas of the company’s activity should have been a finance leasing of agricultural machinery and equipment.

As part of the project, our lawyers were involved in:

  • Advising on the best possible type of the financial services provider and other aspects related to the licensing procedure;
  • Developing a full package of documents for obtaining a leasing license;
  • Organizing a pre-licensed audit by an accredited company;
  • Submitting documents and representing the Client before the state regulator - the National Commission for the Regulation of Financial Services Markets in Ukraine.

The initial key task of our lawyers was to select the register in which the Client should be included. The fact is that before obtaining a financial services license the company shall be included in one of the registers of the National Commission for the Regulation of Financial Services Markets in Ukraine:

  • The State Register of Financial Institutions;
  • The State Register of Legal Entities that are non-financial service companies, but can provide certain financial services.

On the basis of the results of the consultation process, we decided to register the Client’s company as a legal entity that is a non-financial service company, which is authorised to provide certain financial services. This decision was made due to the fact that financial leasing was expected to be an exclusive type of the Client’s activity and that the procedure for inclusion in the abovementioned register was much simpler.

Other issues that were considered at the consultative stage included:

  • Qualification requirements, including special training programs, for the CEO, chief accountant and a person responsible for internal financial monitoring;
  • Requirements for constituent documents;
  • Required regulations, orders and other internal documents.

Once the company was registered as a legal entity, our lawyers initiated its inclusion into the State Register. In view of a rather long standard term for processing the corresponding application and supporting documents (up to one (1) month), it is extremely important to thoroughly prepare all the required documents at this stage, since the reapplication takes the same time. Since our lawyers have extensive expertise in implementing such projects, the Client received a positive decision on his application, confirmed by a relevant Certificate, in three (3) weeks.

Alongside the procedure for inclusion of a legal entity in the Register, we took all necessary actions to obtain an audit opinion on the financial statements and reported data of our Client, which is a mandatory document for the last stage of the legal entity registration, namely, for obtaining a Financial Service License. In this process, it is important not only to obtain a positive opinion of the auditors, but first to choose the appropriate auditor that is included in the relevant register of the National Commission for the State Regulation of Financial Services Markets. Since we cooperate with a number of auditors and audit firms, we fully assist our clients in arranging this process. In this case, our network of contacts allowed us to immediately, upon the client’s company registration, submit all the documents required for obtaining a leasing license. It took us another two weeks to get notified about a positive decision taken by the National Commission for the State Regulation of Financial Services Markets.

As a result, it took our Client just two (2) months to successfully start his financial services business.

 

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