By Ukrainian law, Cooperation agreement (dogovir pro spilnu diyalnist) — an agreement of the parties to co-operate, for profit or achieve other goals. Cooperation agreement (further — CA) in contradistinction to Joint Venture is constituted without establishing a legal entity. CA can be established by two or more parties.
Under Ukraine civil code, rights and obligations of the parties are regulated by the CA agreement.
There are two forms of Cooperation agreement in Ukraine: an agreement on the assignment of products and asset management agreement.
A great advantage of the CA, as a form of association of investors, compared with companies (JSC, LLC, etc.) is the ability to set the rights and obligations of the contract, based on the situation.
By Cooperation agreement, the parties may establish liability for failure to fulfill obligations, the procedure for resolving disputes, the obligation to refrain from certain actions. Ukrainian legislation grants the parties the right to establish the procedure itself: management, appropriation of profit/loss and termination of agreement.
Cooperation agreement is subject to registration by the tax authority in Ukraine. Parties to the agreement must designate CA «operator», (the person responsible for payment of taxes and fees). If one of the parties is a non-resident (foreign legal entity or person) – a contract is subject to registration By Ministry of Economic Development and Trade of Ukraine.
Today, Cooperation agreement has been widely spread in Ukraine, mainly in the field of oil and gas production.
We offer services for the preparation of contract, registration and legal support of Cooperation agreement.