LEGAL FORM OF THE FARMING

Abstract

Purpose: the article explores common features and differences of forms of farming, which are defined by the current legislation of Ukraine. Research methods: a comparative legal and analytical-synthetic method was used. Results: the opinion is expressed that the farms, despite their form, have the following features: 1) the form of business activity; 2) a commercial entity; 3) can be created exclusively by a citizen of Ukraine or citizens of Ukraine; 4) the basis of the farm is the work of relatives or members of the same family; 5) availability of land; 6) belongs to the fourth group of taxpayers who have the right to apply a simplified system of taxation. The analysis of the current legislation shows that the farming in Ukraine can exist in two main forms: as a legal entity and on the basis of registration of a natural person - entrepreneur. Farming as a legal entity can be created as a unitary entity or as a corporate entity.

Regardless of the type of farm - legal entity (unitary or corporate) in the legislation there are no requirements regarding the size and the order of formation of its authorized capital.

A farm that operates on the basis of an individual’s registration - an entrepreneur can be an individual farm of one person or a collective farm where only the members of the same family (family farm) work.

When deciding whether to set up a farm in one form or another, you need to be aware of the difference in order of creation and management of the farm, the differences in land ownership, taxation and government support.

The provisions of the current legislation governing the creation and operation of various forms of farming require clarification in terms of regulating the land capacity of family farms. The author proposes to amend the Law of Ukraine «On Farming» and the Land Code of Ukraine on limiting the land area of family farms that do not have the status of a legal entity, 20 hectares.