The Ministry Of Justice Considers New Regulations For The Registration Of Enterprises
According to new regulations being considered by the Ministry of Justice, company registration will soon require the notarized consent of the founding members and the owner of the property where company is to be located.
Work on development of the new regulations for registration of enterprises started in the Ministry of Economic Development and Trade over a year ago. Recently the Ministry of Finance announced that all amendments have been coordinated between the departments and are now under consideration in the Ministry of Justice.
According to the new regulations, the tax authorities will be required to publish registry data (excluding individuals’ personal data and bank accounts information) free of charge online. Also, to prevent “raiding,” all changes to a company’s address, name, and executive head will also be publicly announced in the mass media.
It is believed that these amendments may seriously hinder raiders’ activity. Sometimes the head of an organization will review registry records and find in them new people unknown to him. If such information will be available at any time, such surprises will be less frequent.
Founding a new enterprise will require submitting notarized continuant documents to the tax inspection. A written consent of the property owner where the legal entity is located will also be required. Submitting incorrect documentation can result in fines of up to 5,000 rubles or disqualification from business for up to three years.
Liquidation of an enterprise will also become more difficult. Abandoning an unwanted company will result in a fine of 5,000 to 10,000 rubles for individuals and from 10,000 to 20,000 rubles for officials. Systematic violations of this nature will lead to a fine of 8,000 to 10,000 rubles for individuals and from 15,000 to 20,000 rubles for officials (or disqualification for up to three years). These amendments received a negative reception by lawyers: abandoned firms are usually not “one-day” companies, but unprofitable enterprises not able to survive on the market. Liquidation of such enterprises in a legal manner is not an easy process. Many businessmen believe that it would be better to develop a simplified company liquidation procedure rather than penalizing the company director. However, absence of such regulation also often leads to conflicts between entrepreneurs and tax authorities.
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