The Ukrainian Agri Council (UAC) organized a webinar for its members to analyze and explain the Law of Ukraine №4196-IX “On Peculiarities of Regulation of Legal Entities of Certain Organizational and Legal Forms in the Transition Period and Associations of Legal Entities” as of 9 May, 2025.

The requirements for changing the organizational and legal form of business, as described in the law, proved to be complex and incomprehensible for many owners and managers of agricultural companies. Therefore, more than 120 participants took part in the webinar.

The vast majority of agricultural companies in Ukraine operate as private enterprises. According to the law, their owners have to make a decision on reorganization until February 20, 2026.

Ruslan Kalnytskyi, Legal Advisor at the UAC and the Smart Country Advisory Center, was the expert of the webinar. In his presentation, he outlined the main provisions of the law and suggested the best ways for farmers to act and revealed all possible forms of reorganization.

"For most farmers, the easiest way is to transform into a limited liability company. This is the most advantageous form of reorganization: firstly, it is not a ground for an unscheduled tax audit, and secondly, only in case of conversion, simplifications provided for by Law No.4196 are in effect - automatic renewal of permits, etc. When planning the date of the reorganization, it is also advisable to take into account the expiration of the decision to grant criticality status, in particular, it is advisable to obtain such status for a new term for the transformed legal entity. It is important not to delay in order to avoid an “emergency” transformation," the expert noted.

Ruslan Kalnytsky also explained to the participants the main prohibited forms of business in accordance with the provisions of the new law, the stages of the conversion procedure, benefits and simplifications, and the risks that may arise in case of failure to convert in a timely manner.

During the event, the expert answered the questions of the participants, including those sent in advance. The participants discussed the situation with enterprises in the temporarily occupied territories, issues of payables, land lease and maintaining the criticality status.

The UAC will continue to support its members in the process of adapting to the new legislation, including providing templates of documents and consultations.