Abolishment of Obligatory Use of Seals

Starting from today, 19 July 2017, due to the entry into force of the Law of Ukraine "On Amendments to Certain Legislative Acts of Ukraine on the Use of Seals by Legal Entities and Individual Entrepreneurs" No. 1982-VIII of 23 March 2017 (the "Law"), a number of requirements in respect of the use of seals by business entities in their economic activities and in relations with government bodies have been abolished.

Among the most important innovations introduced by the Law are the following:

1. a business entity has the right and not the obligation to use a seal in its activities;
2. the presence or absence of a seal on a document (in particular, a contract) does not create legal consequences;
3. the right of parties to a transaction to agree on its obligatory sealing has been repealed;
4. a seal imprint is no longer a requisite element of documents, including their certified copies, which are submitted by a business entity to a state or local government body;
5. a state or local government body's request to have a document sealed shall be illegal and shall entail imposition of a fine.

Obviously, these and other novelties, which have been introduced by the Law, should become a fairly progressive step to gradual complete abolition of seals, being a business anachronism in Ukraine, and to simplification of doing business in Ukraine.

Please keep in mind that the above rules do not concern the rights and duties of persons which are not involved in business activities.

For further information please contact Asters' partner Vadym Samoilenko
and counsel Oles Kvyat.