Today, on August 28, 2025, the Commercial Code of Ukraine officially expires. This is an important step in reforming Ukraine's legal framework, which aims to unify business regulation and bring Ukrainian legislation closer to European standards. From now on, the entire system of business regulation is concentrated in the Civil Code and special laws.
Main changes for business
- Cancellation of outdated regulations. The provisions of the Commercial Code that repeated or contradicted the provisions of the Civil Code will cease to be valid. There is no division into "commercial" and "civil" law - all companies will operate on a civil law basis. Corporations, associations and other business entities will be transformed into associations of legal entities within the framework of the Civil Code. The abolished forms are: private enterprise (PE), collective enterprise, enterprise with foreign investments, state, municipal and state-owned enterprise.
Private enterprises: transition period
Private enterprises have three years to reorganize following:
- From 28.08.2025 to 28.08.2028, the founders are obliged to make a decision to transform the enterprise into an LLC or another form provided for by the Civil Code.
- During this period, private enterprises (PEs) continue to operate, but after 28.08.2028, all charters and registration records that are not brought into compliance with the law will become invalid.
Implications of the abolition of the Commercial Code for Ukrainian business
- Entity owners are required to reorganize within a three-year period.
- Corporate and contractual relations are unified in accordance with the Civil Code.
- Charter documents need to be updated to avoid blocking activities.
What to do now
As we wrote earlier, the repeal of the Commercial Code is a strategic reform and a challenge for Ukrainian business. The reform should simplify the legal environment, make it more transparent for investors and allow for more efficient business operations.
Entrepreneurs should start preparing for reorganization in advance and bring their corporate documents in line to ensure the company's continuity.
Don't put it off until tomorrow - contact professionals today!
Our lawyers will help you reorganize your sole proprietorship into a LLC, update your charter and corporate documents to ensure that your business operates smoothly and legally.
