The Ministry of Agriculture and Rural Development presented a draft law implementing the announcements of the Polish government regarding economic and administrative deregulation. The new regulations are intended to improve the legal environment in which Polish entrepreneurs operate, especially in the context of agricultural property trading and company activities within capital groups.
The project amends the bill with 11 April 2003 on the formation of the agricultural system (U.k.u.r.), responding to two major interpretation and practical problems:
Clarity of the definition of ‘entrepreneurs’
It will be clarified Article 2a(3)(14) and Article 4(1)(4) point (c). resolves the interpretation doubts as to the dismissal of the transformation of the entrepreneur.
The amendment clearly indicates that the exemption from the obligation to apply Article 2a(1)(2) (only an individual farmer may be the purchaser of agricultural property and the total area of the agricultural property purchased, including the family holding, may not exceed 300 ha of agricultural land) applies only to natural persons engaged in economic activities on their own behalf.
Currently, the lack of precision raises doubts as to whether this exemption also covers commercial companies.
Facilitation for capital groups
According to the draft, restrictions on the trading of agricultural property within the same group (as defined in the Accounting Act from 29 September 1994). The companies will no longer have to report such transactions to the National Agricultural Support Centre (KOWR), which eliminates the risk of NOWR intervention in the form of land purchase by the Treasury.
Benefits of the changes
The proposed rules will significantly simplify corporate processes, reduce unnecessary formalities, reduce transaction costs and increase legal certainty. In addition, they will relieve the NAWR, limiting its share of transactions without affecting the ownership structure of agricultural land.
Basic legislative arrangements:
Article 2a(3)(14) and Article 4(1)(4) point (c) u.k.u.r. – clarifying the concept of an entrepreneur as a natural person conducting an economic activity.
Article 3(5)(1), Article 3a(2), Articles 3b(6) and 4(4) point 2 u.k.u.r. – exclusion of restrictions on transactions within capital groups.
The project is currently in a phase of advanced legislative work. No information was reported about the resignation.