So far, there was a law that allowed to close only inactive legal entities. However, from September 2020, the Tax Authorities get the same right for individual entrepreneurs.
Law No. 129-FZ defines that an entrepreneur is recognized as inactive if the following conditions are simultaneously complied when the Tax Authorities make the relevant decision:
- It is more than 15 months since the patent expiration date, or the entrepreneur has not submitted any accounting documents or settlement information within the last 15 months.
- The entrepreneur has debts in accordance with the tax legislation of the Russian Federation (the amount of tax, fee, or insurance premiums not paid within the period established by tax legislation).
If these conditions, specified in article 22.4 of Law No. 129-FZ, are present at the same time, the Federal Tax Service will decide on the exclusion of an invalid individual entrepreneur from the register.
According to the law, the decision of Tax Authorities must be published in the «Bulletin of state registration» within 3 days from its adoption date. Simultaneously with the decision to exclude an individual entrepreneur from the register, information on the procedure and terms to creditors or other people whose rights and legitimate interests are affected by the exclusion of an inactive entrepreneur must be sent.
Creditors or other people whose rights and legitimate interests are affected in connection with the exclusion of the entrepreneur from the register are able to appeal such a decision in court within a year from the day when they learned or should have learned about the violation of their rights.