Registration of fund of financing of construction

The international law company “Alt-Brayer” provides consultancy and legal services to citizens of Ukraine, and also nonresidents in the field of corporate law, promoting at registration of fund of financing of construction.

Owing to increase in sales of construction, and also some legislative changes, now FFC enjoy unprecedented popularity; have big weight with assistance to the construction of new construction objects. As practice shows, costs for bank mediation at the construction of usual “candle” make not less than 100 000 dollars, however if to collect finance independently, then it will turn out to save essential means — to $10 the yew. Or 0,2% of the selling cost of the building.

Construction financing fund

The main distinctive feature of FFC from others investment. schemes control over all participants of construction is. So, the manager of FFC is obliged to watch the course of construction, purposeful use of financial resources before commissioning of the object, and other processes. Apparently, registration of individual FFC is a rather profitable decision for big construction business and if you want to use such service — lawyers of the Alt-Brayer company will only help to realise quickly and legally aspirations.

Legal background of registration of FFC

Emergence and action of fund of financing of construction in the market of construction are not casual. Recently become effective Law in the field of construction made essential changes system of the attraction of financial resources under construction of real estate objects. The sense of the Bill is that:

  • Registratio of the FFC in Ukrainecan mobilise means and distribute them exclusively certain Funds;
  • Only Financial Institutions shall be founders and managing directors of such organisations.

Thus, between, so to speak, standard subjects of construction, builders, investors there was the obligatory intermediary in the form of the considered Fund of financing of construction.

Benefits and shortcomings of FFC

Registration of financial fund of construction is rather profitable to the subject of the architectural industry as has the mass of advantages. It is possible to distinguish from pluses of FFC:

  • Complete control of the state;
  • The protection of the rights and interests of investors “dictated” by legal acts;
  • Control over participants of construction and target distribution of means;
  • The risk of repeated resales of flats is minimum;
  • The funds raised by fund are not assessed with the tax;
  • At liquidation of the manager, finance of principals is not written-off and mouthy is transferred to another manager;
  • At the emergence of any sort of problems, the legislation directly provides the possibility of replacement of the builder or manager.

However, as well as everywhere, FFC has also the shortcomings:

  • The risk connected with non-compliance with date of completion of construction and commissioning of the object, or in general – cessation of work;
  • Algorithm of work, a little difficult for understanding;
  • Some value increase of real estate owing to additional fee to the manager of the fund of financing of construction;
  • The standard agreement mainly protects the rights of the builder and manager.

As practice shows, it is profitable to large construction “sharks” to create the “pocket” manager because so the builder himself can dispose of money from construction, and will be beyond the power to control it to nobody.

Registration of fund of financing of construction

Establishment and registration of the FFCRegistration of FFC happens a little difficult. And it is explained not so much by difficult bureaucratic tricks and formal difficulties, how much need, so to speak, of threefold legitimation: at first as legal persons, then obtaining the status of the financial company, and also licensing. In effect, registration of fund of financing of construction is performed by the following algorithm:

  1. Registration of the legal person (entering of data on the company into EGRPOU);
  2. Fixation in the state register of financial institutions (obtaining the status of finance company);
  3. Obtaining the licence in instance

Apparently, registration of FFC – the task very difficult therefore it is better to entrust it to specialists on the start of the case. Lawyers of the Alt-Brayer company will render the qualified maintenance of any process, including legitimation of activity of fund of financing of construction. Cooperation with us will allow saving not only time, but also financial resources, and registration with us will take place “without a knot and the hitch”.