Some Aspects Regarding Legitimization of Non-Commercial Business Entities

Non-commercial organizations are an important segment of civil society in Ukraine. In order to develop its institutes it is necessary to change legal regulation. That is why commercial legislation becomes more important as a system of legal acts which define the status of non-commercial entities in business activities. 

There are no doubts that non-commercial organizations play a significant role in formation of modern civil society. It is possible to notice some changes in solving of national and local tasks related to the development of economy and social security.

Activities of these organizations not only ensure operation of numerous public associations but are also remarkable element of the market system. Non-commercial organization is established to ensure equal conditions for all forms of property and types of business entities (irrespective of commercial nature) and as a result universality of mechanisms for indirect commercial relations. 

Topicality of the research on legal status of non-commercial business in Ukraine is resulted by the following factors: lack of theoretical provisions, existence of numerous problematic issues on fixing certain types of business entities in legislation, non-effective and ambiguous mechanism for legal regulation of their activities which arises in national law.  

One of the main conditions for business activities particularly non-commercial one is when the state confirms that the entity has entered business legally which is the procedure of legalization. 

Legitimization of non-commercial business entities includes several stages. All non-commercial entities should undergo the procedure of the state registration which includes entry of information to the Unified State Registry of Legal Entities, Individual Entrepreneurs and Public Organizations as well as the Registry of Non-Profit Organizations. 

In this regard, legitimization of non-commercial entities is authorization for carrying out of non-commercial activities which means that the business entity obtained the right to conduct non-commercial activities in accordance with the procedure provided for by national legislation.