Experts of the Ukrainian Agri Council (UAC), within the framework of a project supporting affected agricultural producers in partnership with the international humanitarian organization Mercy Corps, have prepared an informational digest on the impact of reorganizing agricultural enterprises through transformation in accordance with the Law of Ukraine “On the Specifics of Regulating the Activities of Legal Entities of Certain Organizational and Legal Forms during the Transition Period and Associations of Legal Entities” dated January 9, 2025 No. 4196-IX.

Following the entry into force of Law No. 4196, a number of agricultural enterprises — in particular private enterprises — have initiated reorganization procedures, most often through transformation into limited liability companies (LLCs). At the same time, in practice, agricultural producers have faced legal uncertainty regarding the validity of existing permits, licenses, registrations, land rights, participation in state support programs, and specifics of tax accounting during such reorganization.

The digest prepared by UAC experts systematically explains the consequences of legal entity transformation for key documents and procedures in the field of agricultural production, as well as in which cases documents remain valid for the legal successor and when they need to be reissued or obtained anew. Special attention is paid to the provisions of sector-specific legislation that may establish rules different from the general provisions of Law No. 4196.

The document will help agricultural producers to:

• assess legal risks before initiating reorganization;
• understand which permits, licenses, and registrations remain valid and which require reissuance;
• plan the transformation procedure taking into account deadlines and requirements of regulatory authorities;
• avoid suspension of business activities, loss of access to state support, grant programs, or special tax regimes.

The digest includes a practical table listing the main documents relevant to agricultural producers — from land lease agreements and food safety permits to fuel storage licenses, tax procedures, and participation in state support programs — indicating their status after reorganization and recommended actions.

The full text of the informational digest is available at:
https://drive.google.com/file/d/1gTrfWy2s3bKWVK3bMN94yZho0VjIUYEK/view?usp=sharing

We would also like to remind that the Ukrainian Agri Council (UAC), in partnership with the international humanitarian organization MERCY CORPS, has launched a legal advisory hotline to provide legal and accounting consultations to agricultural producers from affected regions.

To receive a consultation, please submit your request via the online form:
https://forms.gle/v56UzTAsrD9Zrx998

For follow-up questions, please contact the legal advisory hotline:
+38 067 522-03-43

Background:

MERCY CORPS is an international humanitarian organization operating in more than 40 countries worldwide, providing assistance to people affected by disasters, wars, poverty, and the impacts of climate change.