The Cabinet of Ministers determined the procedure for the transformation of state and communal enterprises into JSC, LLC and DNP

The Cabinet of Ministers of Ukraine adopted a series of resolutions that determine the procedure for transforming state and communal enterprises into modern organizational and legal forms that are understandable for business and corresponding to international practices: joint-stock companies (JSC), limited liability companies (LLC) or state non-commercial companies (DNT).

These decisions became part of the reform of the system of organizational and legal forms of ownership. The Law of Ukraine “On the peculiarities of regulating the activities of legal entities of individual organizational and legal forms in the transitional period and associations of legal entities” dated January 9, 2025 No. 4196-IX provided for the cancellation of the Economic Code of Ukraine from August 28, 2025 and bringing the system of organizational and legal forms of activity of legal entities into compliance with European standards.

Among the main innovations of the law is the abolition of the organizational and legal form “state enterprise”. State-owned enterprises have three years from the moment the GCU expires to transform into joint-stock companies, limited liability companies or state non-commercial companies.

“The developed resolutions adopted by the Government determine how state and communal enterprises will live under the new legislation. We are moving away from the Soviet legacy, unifying the rules of the game for everyone and putting the public sector on the same terms as the private sector, said Deputy Minister of Economy, Environment and Agriculture of Ukraine Daria Marchak.