Partner at Sofiya Law Firm told about how to launch a family farm (video)
The Land Code specifies that one is required to have either agricultural education or experience of working in the agriculture to obtain land for building his own family farm. There are no other (at least from a legal perspective) restrictions on launching agribusinesses.
Victoriia Varienikova, advocate, associated partner at Sofiya Law Firm, shared the algorithm for starting such businesses with the audience of Zapytai Yurysta (Ask a Lawyer) show broadcast on Pravo TV.
She has pointed out that when it comes to the definition of members of a family farm the relevant Law (the Law on Farm Businesses) refers to Article 3 of the Ukrainian Family Code. "The Code says that a family is composed of persons that live together and share the household, and have mutual rights and obligations," Ms Varienikova said. "However, a single person is vested with family member rights, too. Everyone is therefore entitled to create a family farm."
The lawyer mentioned that either an available model charter or an individually developed charter meeting special needs of a farm business can be used to spell out rights and obligations conferred on members of a family farm having legal personality. Then a founders' resolution specifying the list of the meeting's participants should be legally executed. All the abovementioned documents should be filed with a state registrar. Good news is that no administrative fee is charged for the registration of a legal entity today (however, such fee is payable if later you decide to amend the constituent documents). The acquisition of the land bank is another issue that requires a special decision.
In 2016, the legislators facilitated the procedures for establishing family farms and allowed them to do business without acquisition of legal personality. Such a farm business can be established by a private entrepreneur, whether individually or jointly with his family members, under an agreement to be entered into between members of the family in writing. The agreement should be notarised. Ms Varienikova pointed out that the instrument should specify the regime applicable to the farm's property, outlining the manner in which it should be used, indemnification, and profit and expenses sharing procedures, and other important things. Once this is done, the person can be registered as a private entrepreneur and commence his farm business.
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