Dear colleagues and partners! News: we present the new overview of changes in the legislation of the Russian Federation…
The Federal Taxation Service (FTS): there is no obstacle to registering an organization in the flat owned by a legal person, who is a company executive officer
It is noted that this method of registration is applicable, for example, if the business is related to digital technologies and the owner does not need a business premises. However, if the flat is used as an address for mass registrations, then state registration may be rejected.
<Information> The Federal Tax Service of Russia “Tax policy and practice: Can an organization be registered to the address of the apartment in case the founder is its owner”.
BLCONS GROUP lawyers’ comment: There is no legal prohibition on registering a company at the location of both its executive body or authorized person, therefore previously there has been no difficulties in registering a company to the address of the apartment where the founder or/and a legal person lives. From about 2020, the tax authorities began to refuse to register companies if the apartment where the head of the company is registered was claimed as the location of the organization. Herewith, the tax authority referred to the prohibition or absence of the permission from the other owners in a house or the homeowners association to register legal entities in apartments located in the block of flats.
Of course, such rejections were illegal, but most of the company’s founders preferred not to get into a long argument with the tax authorities. Finally, the Tax Service itself accepted the unlawfulness of such rejections, however, imposed restrictions on the type of activity of the organization, and it gave the territorial registration authorities the possibility to reject most of the applicants, but make some exceptions.
We believe that the possibility of registering a company to the domicile of the head of the company or the founder can be used by any legal entities. It not only helps to minimize costs that is important at the early stage of business start-ups, but it is also safer than renting a “virtual” office, since all official correspondence is sent to the registered office address, which means that the risk of not receiving any important letters or notices is lower..
Until the end of 2023, the Bank of Russia will not implement sanctions for certain violations committed by depositories that accounting of ownership rights to foreign issuers’ securities
The Bank of Russia will refrain from taking measures against depositories in case they do not meet the requirements for depository activities set by Clause 1 of the Requirements to Depositories that accounting of ownership rights to foreign issuers’ securities allowed for public offering and (or) public circulation in Russian Federation approved by the Order of FFMS of Russia № 10-19/пз-н dated 23.03.2010.
Information letter of the Bank of Russia № ИН-018-34/132 dated 15.11.2022 “On not implementing measures to depositories that accounting ownership rights to foreign issuers”.
BLCONS GROUP lawyers’ comment: The Russian Federation Central Bank’s refraining from taking administrative measures to depositories is legitimate and is taking into account the current situation in which depositories are unable to meet certain requirements for such activities due to the sixth package of European Union sanctions against the Russian Federation, as the National Settlement Depository has came under Annex 101 and all assets have been frozen.
BLCONS GROUP’s lawyers are currently advising on the implementation of procedures aimed at returning frozen assets to investors
Extension of the Government’s authority in the Part One of the Tax Code of the Russian Federation
The government’s authority over taxes and fees has been extended to 2023. In particular, it was given to the Government the right to:
- prolong the deadlines for the payment of taxes and fees;
- suspend, cancel or postpone tax control measures;
- extend the deadlines for submitting reports;
- establish grounds and conditions under which there will be no penalties for payment delay;
- provide additional grounds for postponing and deferring taxes and fees by instalments.
Federal Law № 443-ФЗ of 21.11.2022 “On Amendments to Article 4 of Part One, Part Two of the Tax Code of the Russian Federation and Certain Legislative Acts of the Russian Federation”.