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Registration of Legal Entities Will Take at Least Five Days Processing
17.07.06The Federal Tax Service has issued a letter prohibiting the registration of legal entities in less than the five days determined by law.
This instruction is supposed to help eliminate the “technical errors” that sometimes occur as entities are entered or changed in the Unified State Register of Legal Entities. In the past, these errors have resulted in the unjust seizures of some companies.
The letter also seeks to standardize the registration period at five days, as it is written to imply that the registration should be entered on the fifth day after the application is made, not a day earlier or later.
In practice it will likely mean that the state will have a new cause to deny registration. Of course, in practice, the tax authorities never complete registration in less than five days. Documents are supposedly reviewed within four days and on the fifth day the company is recorded in the state registry. But psychologically, such a measure is extremely unpopular, and in some cases could trigger rejections in registration for purely formal reasons (for example, a cause for rejection in accelerated registration of a company).
However, most agree that this will neither effectively curtail the “technical mistakes” nor unwarranted seizures. Most likely, it is a sign that the government plans to extend even more the registration period. Under the guise of fighting the "fly-by-night" companies, they may indeed increase this period to 30 days, according to the opinion of some experts.