Selection of Organisational Forms for Business Project Implementation in Ukraine: Criteria and Trends
DOI:
https://doi.org/10.58423/2786-6742/2025-9-86-99Keywords:
organisational forms of doing business, limited liability company, joint-stock company, individual entrepreneur, enterpriseAbstract
The article explores trends regarding the choice of organisational forms of business project implementation by business entities in Ukraine. The authors analyse the dynamics of business entities in various organisational and legal forms of doing business in Ukraine from 2016 to 2025. The study reveals (1) an increase in the number of business entities in the form of individual entrepreneurs (IEs) and limited liability companies, which proved to be the most flexible and adapted to survive in the context of high risks and uncertainty associated with the Covid-19 pandemic, hostilities in eastern Ukraine since 2014, and subsequently a full-scale war since 2022; (2) a decrease in the number of enterprises of all other legal entities - private, state-owned, municipal (except for the years of healthcare and decentralisation reform), foreign, subsidiaries and other enterprises, as well as joint-stock, full, limited and additional liability companies. Reducing the cost of borrowed capital and simplifying accounting, reporting and taxation systems would facilitate the development of these two dominant forms of business. It has also been established that during the period of research, the State's efforts were aimed at stimulating the development of joint stock companies, as evidenced by (1) the creation of the vast majority of joint stock companies in Ukraine as a result of the privatisation of state property in the 1990s and 2000s, and (2) the legislative definition of the joint stock form of doing business for certain types of economic activity, and (3) the reform of mandatory corporatisation of state-owned enterprises in 2025. The activities of joint-stock companies are linked to the stock market, the underdevelopment of which in Ukraine negates such an advantage of joint-stock companies as the choice of sources of market value growth, which, combined with the complexity and cost of procedures set out in regulatory legislation, leads to a steady decrease in their number. It has been determined that the choice of the organisational and legal form of business project implementation in Ukraine is influenced by the following criteria: (1) responsibility of participants for the results of the enterprise; (2) complexity and cost of organisational procedures related to the State regulatory activity; (3) complexity of management of the organisation; (4) sphere of activity
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