On March 23, the Verkhovna Rada of Ukraine adopted a law that significantly changes the regulation of the use of seals by legal entities and individuals-entrepreneurs.

In particular, the law provides for amendments to the Civil Code of Ukraine, the Economic Code of Ukraine, the Code of Ukraine on Administrative Offenses and a number of other legislative acts of Ukraine which excludes the requirement of mandatory use of seals (regardless of their availability for business entities) and the need to use of seals in the relationships of business entities with government agencies and local governments. The presence or absence of an enterprise seal on the document is not expected to create any legal consequences.

Moreover, the law establishes the administrative responsibility of officials, public authorities and local authorities for the demand of seal presence on a document, submitted by the business entity, the same with an imprint of its seal or a notarization of the authenticity of a copy of the document if the binding nature of such notarization is not established by law.

The Cabinet of Ministers of Ukraine, at the same time, should bring its normative and legal acts in line with this law and ensure the same from the ministries and other central executive bodies.

The entry into force of the law is expected in three months after its publication.

More details about the expected changes can be found in the materials of the bill itself. Direct link to the card of the bill (in Ukrainian): https://goo.gl/T1wtm3/. Direct link to the text of the bill (in Ukrainian): https://goo.gl/Qk3kMi.

Of course, regulation of the use of seals in this form raises many issues in terms of practical implementation, but that’s another issue.