How to open a private educational institution?

Generally, educational activity in Ukraine is subject of licensing, which means it is
not so easy to start a private school or kindergarten. However, is it always necessary to get a
To open a private institution for starters, you need to choose the form of doing
business. As you know, a person individually as an entrepreneur or a legal entity can carry
out entrepreneurial activity in Ukraine. Each of these forms has advantages and
Among the advantages of the activity without a legal entity is the simplicity in
registration and accounting of further activities. The disadvantage is the full responsibility
of an individual by all of his property.
Registration of a legal entity is more complicated, it requires the development of a
charter, authorized capital, as well as a manager and payment of wages to him. The most
common forms in Ukraine are a limited liability company and a private enterprise, which
can be created by either one or several persons. The advantage of such legal form is that the
founder is not liable for the obligations of the legal entity, and the legal entity is not liable
for the obligations of the founder.
Educational activity can be carried out in any of these forms, the Ukrainian
legislation does not contain restrictions, and therefore the choice is entirely yours. If you
want to hold separate courses or seminars without an educational institution – you can
choose an individual entrepreneur as a simpler form.
Educational institution is always a legal entity.
Ukrainian legislation requires obtaining a license for educational activities. At the
same time, the analysis of the law on licensing shows that it is necessary to get a license
only for "educational institutions".
The procedure for obtaining a license, as well as the requirements for educational
institutions, is determined by licensing conditions for each level of education.
The form of a license application is approved by the regulatory. In addition, you
need to file some documents, according to the list. The main documents are copies of the
statutory documents, documents confirming the right to use the building for at least three
years, the compliance with sanitation and fire safety standards, information about the
material and technical support of the institution and the level of education and qualifications
of the manager and staff.
Ministry of Education, as well as regional state administrations issue licenses. The
license fee is made after the publication of the decision on its issuance within ten working
The most interesting fact is that you do not need to get the license if you conduct
some courses or seminars as an individual entrepreneur. In according with Ukrainian
legislation only educational activities, conducting by “institutions”, requires licensing.
The possibility of educational activity without obtaining a license exists also in other
case – when an institution does not issue the document on training in the order established
by the law.

The conclusion is that for business entities, whose activities do not have a complete
cycle of training and do not issue a document on extracurricular education, there is no need
to obtain a license.
Finally, even if you issue a diploma, the Ukrainian legislation does not contain the
order for conducting extracurricular educational activities, so you can conduct this type of
business without any license.

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A new law on virtual assets: the picture is formed, but without details. On September 8, 2021, the Verkhovna Rada has finally adopted the long-awaited law "On Virtual Assets", which clarified many ambiguous points. This is especially true for the status of cryptocurrency and the rules of its circulation in the country. Let`s take a closer look at novelties. An ambiguous term Let's start with what the legislator actually means by "virtual assets". There are the following features:  they are an intangible good (cannot be represented on tangible media)  fall under the list of objects of civil rights (that is, they can be owned and be disposed of)  represent an electronic form of a set of data (essentially, they are blocks of information put in order);  the existence and circulation of assets are due to software tools (specific electronic environment). From these features we can draw the following conclusion: virtual assets are not limited to cryptocurrency. Digital currency is part of the concept, but other instruments, such as tokens, NFTs, or even in-game items, fall under the definition. Actually, the actual existence of most digital products, having a certain value, is due to the software environment (ecosystem), either it is blockchain technology, a trading platform, or an online game server. It should be noted that the attempt to define virtual assets was already made in the adopted Law of Ukraine in counteracting money laundering. In this act, they understand it as digital means of payment, which goes against the new definition. As a result, there are now two different explanations for virtual assets, which causes significant confusion not only in regulation but also in interpretation. It is definitely necessary to expect clarifications from competent state bodies. Let's return to the new law. Its application covers legal relations in which the "Ukrainian element" is present:  provider or recipient of services represented in Ukraine;  an agreement according to which the turnover of virtual assets is carried out in accordance with Ukrainian legislation;  the acquirer of assets (or both counterparties) is a resident(s) of Ukraine. The law also introduces an interesting division of all virtual assets into two groups: secured and unsecured. Here again, there is a problem of interpretation. The first category includes products exchanged for (state) currency, the second category includes instruments that can be exchanged only for other digital assets. There is an alternative opinion: that the turnover of secured assets is supported by real goods (money or other property), while unsecured ones are not supported by anything. The latter interpretation is the most credible, as the new law stipulates that virtual assets are NOT means of payment. Moreover, they cannot be exchanged for real goods, be they property, services or money. This significantly narrows the potential for the use of virtual assets not only for commercial but also for civilian purposes. About obligatory licensing The new law states that in some cases, the use of virtual assets will require licensing. The 4 types of activity are mentioned:  storage and management of virtual assets (or its` keys)  servicing of exchange operations with virtual assets (both for other analogues and for real goods);  translation of digital assets;  any intermediary services. A list is quite impressive, but there are some important exclusions:  if your service works with cryptocurrency wallet (it means users can dispose of accumulations into cryptocurrency independently);  If your service works on smart contracts or decentralized protocol, based on which internal transfers are performed. As to intermediary services, everything is more compicated. Actually, any mediation is based on the public share offering. That is why it is subject to licensing. How to get a license? A company that wishes on legal grounds to engage in virtual assets must satisfy legislative requirements. The key role is played by the minimum amount of the statutory capital, which equals 1,19 million hryvnyas (for non-residents it is 5,95 million hryvnyas) in case of storage and administration. For other types of activity (trading, translation and mediation services) the minimum size of the statutory capital amounts to 595 thousand hryvnyas (for non-residents is 2,98 million hryvnyas). The order of the registration of license:  to compose an application and prepare documents.  to pay state fee (68-136 thousand hryvnyas for residents and 340-680 thousand hryvnyas is for non-residents).  to pend review of the request (30 days).  to get a license. The duration of the license is 1 year. No norms about the continuation of legal force of permission are set (we are expecting amendments or explanations from the Ministry of Digital transformation of Ukraine). Notably that non-residents must pay a far greater sum, than domestic companies. The Ukrainian legislator obviously encourages an internal market, getting rid of a strong foreign presence (that, in fact, coincide with modern politics of the state on the whole). Together with an application, the following documents must be prepared: The access code to the copy of the Statute of the company (or the foundation agreement) kept in an electronic file in the database of the Unified State Register of Enterprises and Organizations (USREO);  Funding sources of the statutory capital (where the money are taken from);  confirmation of the actual injection of money;  information about beneficiaries (special attention must be paid to business reputation);  the information about the director and founders;  the check about payment of state fee;  the internal regulations, in accordance with which ones, the privacy policy rules are regulated. In the terms of volume of necessary documentation of licensing is very alike with complete registration of legal entity. It is understood that the state wants the severe adjusting of activity of organizations that will engage in virtual assets. Is it already possible to get a license? The adoption of the law by the parliament is a significant step forward in adjusting and legal market of virtual assets creation in Ukraine. However, the new rules haven`t come into effect yet - their term of introduction depends on making amendments in the Internal Revenue Code. It is yet unknown, when a legislator will decide to enter the renewed system of taxation for such assets. Being "IT-hub" and territory, where cryptocurrency enjoys large popularity, the question of taxes must be decided maximally safely. Despite the presence of obvious gaps in interpretation, a new law on virtual assets gives the official narrative of what takes place and that, how the legal relationships related to cryptocurrency will be regulated. It is to be hoped that in the nearest time the Ministry of digital information will give out the detailed explanations concerning debatable norms.
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