We registered a garage construction co-operative in the Kyiv region
In this material, we will look at a case from the practice of our Company that demonstrates clearly the answers to the following questions:
- what to do in case it has been found that a garage co-operative registered back in Soviet times is missing in the Unified State Register?
- how to confirm the unprofitability status of a garage co-operative?
The facts of the case: In March 2019, the head of the garage construction co-operative from the Kyiv region contacted our company. According to him,, the cooperative needed to make changes to the information in the Unified State Register (hereinafter - the USR), but the state registrar refused to make the changes. The reason for the refusal was the fact that a record of registration of the cooperative was missing in the USR. The Client turned to several law firms, but could not get answers to their questions.
Our task was to find out why the cooperative was missing in the Unified State Register and to enter relevant information about the cooperative into this register.
While working on the case, the following became clear:
- the cooperative was established by the constituent assembly in 1989;
- there is an agreement of the local Soviet authorities on the provision of a land plot for the placement of a cooperative;
- there is a copy of the conclusion of the local authorities on the possibility of registering a cooperative, but there is not a single certificate or other document that would testify to its registration and assignment of a code.
The registration of the cooperative in the Soviet Union was something new and incredible, especially in 1989. In May 1988, the USSR Law "On Cooperation in the USSR" was issued. According to Part 3 of Art. 11 of this Law, the cooperative was registered by the local council of people's deputies on the basis of the conclusion of the deputy commissioner of this Council. According to this norm, if a cooperative needed a land plot to carry out its activities, then its registration required the consent of the relevant state body to provide a land plot.
This means: to register a cooperative, it was necessary to go through a long multi-stage bureaucratic red tape. Therefore, obtaining consent to provide a land plot and a conclusion on registration could be regarded by the founders as the fact of the completed state registration of the cooperative. Moreover, legally, the registration act was not completed.
What is the way out of this situation?
We proposed the following solution procedure:
- If the cooperative actually just existed, considering itself registered, the fastest way out would be to simply register it again - this time under the current Ukrainian legislation.
- If there is any doubt whether it is registered or not, such information can be checked rather easily and free of charge. To do this, you need to enter the name of the cooperative on the website of the Ministry of Justice of Ukraine in the search feed.
You can also get an official response from government agencies in paper form by submitting a request to your local statistical office or to the Main Directorate of Regional Statistics.
If it turns out that such a legal entity does not exist, you can safely register a cooperative with the same name.
During the consultation stage, we also pointed it out to the Client that it would be better for a garage construction cooperative to get itself registered register as a non-profit organization since this would satisfy the needs of the garage construction cooperative.
Related article: Non-profit organizations. Types and regulatory framework in Ukraine
Result of work
After consultation between our company and the Client, an agreement was signed on the provision of legal services. On the same day, our experts prepared all the necessary documents and made an appointment with a notary to draw up letters of attorney on behalf of all the founders.
The next day, the documents were submitted to the state registrar, and a day after filing the cooperative was registered. It took another two weeks to obtain a non-profit status.
Thus, if your garage construction cooperative was set up in the late 80s - early 90s, it is worth finding out whether the registration procedure was completed finalized and whether it is listed in the Unified State Register of Legal Entities and Individual Entrepreneurs; whether it has a status of non-profitability; whether its charter meets the requirements of current legislation.
We are ready to help you!
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