Registration of a financial company, financial institutions

The procedure for registering financial institutions differs from the usual registration of entrepreneurship in the peculiarities of the activities in which these institutions are engaged. The financial institution is a legal entity that, in accordance with the current legislation, provides one or more services, as well as other or operations related to the provision of financial, in cases directly stipulated by law, and is entered in the relevant register in the manner prescribed by law.

Due to the high riskiness of monetary activities and increased responsibility to the society of such institutions, in accordance with the requirements of the Law of Ukraine "On financial services and state regulation of work markets'' dated July 12, 2001 and the Resolution on the State Commission for the Regulation of the Markets of these works of Ukraine, approved by the Presidential Decree Of Ukraine dated 04.04.2003 under No. 292, the State Register was formed by the Financial Services Commission. All information about entering the Register is published on the website of the Financial Services Commission (www.dfp.gov.ua).

Registration of financial companies

So, the procedure for state registration of such a legal entity involves not only the registration itself, but also entering information about it into the Register and obtaining a special license. The procedure for obtaining the status is stipulated by the Regulations on the State Register of Financial Institutions, approved by the order of the Financial Services Commission of 28.08.2003, No. 41, registered by the Ministry of Justice on 11.09.2003 under No. 797/8118. It is mandatory to obtain a license for financial institutions to carry out the following activities:

• insurance;
• provision of accumulative pension services;
• provision of loans at the expense of borrowed funds;
• provision of any services involving the direct or indirect attraction of assets from individuals.

Without a license and obtaining the status of a financial institution, but in compliance with a number of statutory requirements, it is allowed to carry out: leasing, factoring, lending without raising funds and services for the provision of surety (Resolution of the Financial Services Commission of January 22, 2004 N21, registered by the Ministry of Justice on April 16, 2004 under N 492/9091 "On approval of the Regulation on the provision of certain financial works by legal entities - business entities, which are not institutions by their legal status").

 Types of financial institutions:

• banks;
• credit unions;
• pawnshops;
• leasing companies;
• trust companies; 
• insurance companies; 
• non-state accumulative pension provision;
• investment funds;
• asset management companies (AMC);
• construction funds (FS), etc.

Companies can be created in any organizational and legal form, if the laws do not contain special rules and restrictions,  private entrepreneurs cannot provide these services. The choice of the form and registration is a very important issue when creating, because depending on it, various restrictions and additional requirements can come into force, as, say, for pawnshops, credit unions, insurance companies. Due to the high probability of risks, one of the most important requirements for obtaining a license to carry out financial activities is that the authorized capital of a company must be at least UAH 5 million for those who plan to provide services to attract funds to individuals, and at least UAH 3 million for all others. 

Registration of financial institutions consists of:

• state registration and entry into the Unified State Register of Legal Entities;
• entering information into the State Register of Financial Institutions;
• obtaining a license for the chosen type of activity.

Registration of financial companies also provides for the development of such an important document as a charter, which must meet the norms and requirements of specific legislative acts governing the activities of a financial institution of one type or another. Such an institution has the right to provide services only at the address specified in the statutory documents. Strict requirements are imposed on the premises itself. To obtain a license, you must provide evidence of special training, lack of convictions for mercenary crimes by management and specialists, etc.

After registration you will receive:

the charter and special certificate of a financial institution, which is not transferable for use by other legal entities or individuals for the provision of financial works and indicates the status of a legal entity. This Certificate must be posted in a place visible to consumers of financial services at the location of the financial person.

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