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Tax Authorities may exclude legal entities and individual entrepreneurs from the Unified State Register of Legal Entities for suspicious transactions

Amended Federal Law regulating state registration of#nbsp;legal entities and individual entrepreneurs.
Federal Law No. 519-FZ dated 02.11.2023 amended Federal Law No. 129-FZ dated 08.08.2001 regulating state registration of#nbsp;legal entities and individual entrepreneurs, according to#nbsp;which from November 13, 2023:


  • The Federal Tax Service will exclude legal entities from the EGRUL (Unified State Register of#nbsp;Legal Entities) and individual entrepreneurs from the EGRIP (Unified State Register of#nbsp;Individual Entrepreneurs) if#nbsp;they are classified as#nbsp;a#nbsp;high-risk rating for carrying out suspicious transactions within the framework of#nbsp;the Bank of#nbsp;Russia "Know Your Client" platform.
  • The Federal Tax Service will not exclude a#nbsp;legal entity or#nbsp;individual entrepreneur from state registers if#nbsp;the circumstances that served as#nbsp;the basis for the decision on#nbsp;the upcoming exclusion are eliminated (the rating will be#nbsp;upgraded to#nbsp;medium or#nbsp;low degree). For example, a#nbsp;legal entity can challenge the assessment through an#nbsp;interdepartmental commission at#nbsp;the Bank of#nbsp;Russia or#nbsp;through the court.
  • The Federal Tax Service will include in#nbsp;the EGRUL and the EGRIP information that a#nbsp;decision has been made regarding the upcoming exclusion from the state register of#nbsp;any legal entity or#nbsp;individual entrepreneur.
  • Objections to#nbsp;the upcoming exclusion of#nbsp;a#nbsp;legal entity or#nbsp;individual entrepreneur from the register must be#nbsp;sent by#nbsp;creditors or#nbsp;other persons whose legitimate interests are affected by#nbsp;this exclusion to#nbsp;the Federal Tax Service no#nbsp;later than six months from the date of#nbsp;publication of#nbsp;the decision. In#nbsp;this case, a#nbsp;decision to#nbsp;exclude a#nbsp;legal entity or#nbsp;individual entrepreneur from the state register is#nbsp;not made.
  • Also, by#nbsp;amendments to#nbsp;the law, the list of#nbsp;grounds for refusal of#nbsp;state registration has been expanded. For example, suppose a#nbsp;manager or#nbsp;a#nbsp;founder of#nbsp;a#nbsp;legal entity was once excluded from the EGRUL due to#nbsp;false information about them in#nbsp;the register. In#nbsp;that case, the possibility of#nbsp;registering a#nbsp;company with such founders and/or managers is#nbsp;limited to#nbsp;three years.
  • Also, from the list of#nbsp;documents provided for state registration of#nbsp;an#nbsp;individual as#nbsp;an#nbsp;individual entrepreneur to#nbsp;the registration authority, a#nbsp;copy of#nbsp;the passport of#nbsp;a#nbsp;Russian citizen is#nbsp;excluded.