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Business without legal barriers

One of the forms of conducting business in rural areas can be agricultural cooperatives.

An agricultural cooperative is a legal entity formed by agricultural producers who voluntarily unite based on membership to carry out joint activities related to the production, processing, storage, distribution, and sale of agricultural products, as well as the supply of production means and material-technical resources to its members and the provision of certain services.

Thus, agricultural cooperation can become an effective mechanism for ensuring the competitiveness of small agricultural producers. By joining forces and pooling resources, small farms and individual household farms can compete more effectively against large agroholdings.

In many cases, it is too costly for individual farms to implement certain activities independently. Cooperatives provide the opportunity to unite for joint operations, which yields better results than if the same number of farmers worked separately. Moreover, a key advantage of agricultural cooperatives is that they are managed by their own members—farmers themselves.

The formation of agricultural cooperatives can help attract investors, create additional jobs, and improve the living standards of cooperative members.

It is important to note that establishing an agricultural cooperative requires several legal steps that demand specialized knowledge and experience—something most farmers do not possess. These steps include forming an initiative group of founders, holding a constituent assembly, drafting statutory documents, and registering the cooperative as a legal entity. Therefore, at the stage of establishing an agricultural cooperative, it is essential to seek assistance from experienced legal professionals.

The WinnerLex Law Firm brings together top attorneys and legal experts who provide comprehensive legal support for agricultural producers and processing enterprises across various sectors of the agribusiness industry. Our lawyers understand the specific legal regulations governing the agricultural sector, allowing us to offer the most effective solutions to your legal issues.

SUPPORT FOR THE CREATION OF AGRICULTURAL COOPERATIVES includes a wide range of services, including:

  • Providing written consultations on the provisions of current legislation related to the creation of agricultural cooperatives;
  • Drafting statutory and other corporate documents necessary for the establishment and registration of agricultural cooperatives;
  • Assisting with the state registration procedure of agricultural cooperatives;
  • Developing internal operational regulations for agricultural service cooperatives;
  • Tax planning for agricultural cooperative activities;
  • External legal subscription services for agricultural cooperatives (legal outsourcing).
The specialists:
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Our Advantages:
SPECIALIZATION The law firm WinnerLex specializes in legal services for the agricultural sector, providing systematic legal support (outsourcing) to various agricultural enterprises across different regions of the country.
EXPERIENCE Our legal professionals have extensive experience in successfully supporting the establishment of legal entities of various organizational and legal forms operating in the agricultural industry.
PROACTIVITY We identify potential threats and protect against possible risks.
COMPETENCE Our law firm’s specialists have years of successful experience in legal support for agricultural businesses. We have ensured the legal framework for the implementation of complex business projects. We are skilled in solving unconventional problems and tackling complex challenges, overcoming bureaucratic and corruption-related obstacles to facilitate your business operations.
PROFESSIONALISM By closely monitoring current legislative changes and leveraging our accumulated experience in legal support for agricultural enterprises, we apply a comprehensive and always up-to-date approach to resolving legal issues in agribusiness.
EFFICIENCY We provide "rapid legal assistance" in case of legal issues arising during the establishment of legal entities operating in the agricultural sector.
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FREQUENTLY ASKED QUESTIONS
What Types of Agricultural Cooperatives Exist?

Agricultural cooperatives are divided into production cooperatives and service cooperatives. 

A production agricultural cooperative is a cooperative formed by individuals who are agricultural producers. These individuals unite to carry out joint production or other economic activities based on their mandatory labor participation, with the goal of generating profit.

 

A service agricultural cooperative is a cooperative formed by individuals and legal entities engaged in agricultural production. It is established to provide services aimed at reducing costs and increasing the income of its members while carrying out agricultural activities, as well as to protect their economic interests.

What regulates the procedure for the creation and state registration of agricultural cooperatives?

The procedure for the creation and state registration of agricultural cooperatives is governed by the Law of Ukraine “On State Registration of Legal Entities, Entrepreneurs, and Public Associations,” with specific provisions outlined in the Laws of Ukraine “On Cooperation” and “On Agricultural Cooperation.”

In what case can an agricultural cooperative have the status of a non-profit organization for tax purposes?

Agricultural service cooperatives that provide services exclusively to their members—producers of agricultural products, without the aim of generating profit—can have the status of non-profit organizations, provided that they simultaneously meet the following conditions:

  • They are formed and registered in accordance with the law regulating the activities of the respective non-profit organization;
  • Their founding documents prohibit the distribution of income (profits) or any part of it among members or employees (except for payment of labor and social security contributions), members of the management bodies, and other related persons;
  • Their founding documents stipulate the transfer of assets to one or more non-profit agricultural cooperatives or their inclusion in the budget revenue in the event of the cooperative’s liquidation.

To obtain the status of a non-profit organization, the agricultural cooperative must be included in the Register of Non-Profit Institutions and Organizations.

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