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Main Russian regulation changes for 2016

1.         Company State Registration 

-             consolidation of role of the notary in making the transaction with shares 

Starting from January 1, 2016 the number of cases that require notarization of the transaction connected with transfer of the share of participant increased. For example, starting from January 1, 2016, transaction of the transfer of the share that is made by the participants of the company under conditions when one of them has the preemptive right must be notarized. 

It’s also stipulated that the notary has to sign and electronically surrender an application on making amendments in the Unified State Register of Legal Entities (the “EGRUL”) in connection with the transfer of the share to the registration authority. 

Company participant who intends to sell his share to the third person must inform about this the other participants and the legal entity itself in a written form. This notification has to be made in a form of notarized offer. 

-           widening of the list of the reasons for the state registration refusal 

A new reason for the state registration refusal has appeared in the legislation – in case of disregard of the order of the company liquidation or reorganization as well as other requirements stated by the law as obligatory for the state registration.

-           verification of the veracity of the information that is to be included or was earlier included in the EGRUL 

Now the registration authority has the right to verify the veracity of the information connected with upcoming state registration. Verification is carried out by:

a)         reviewing the documents and information which the registration authority has;

b)         requesting the necessary explanations from the persons who may know some circumstances which are meaningful for conducting the verification;

c)         requesting the statements and information concerning the issues that may appear during the conduction of the verification;

d)         conducting the examination of the real estate;

e)         engaging the specialist or expert for participation in the conduction of the verification. 

-           complication of the procedure of changing the legal address of the legal entity when this legal entity changes its legal address 

Now the EGRUL has to contain the information about the company decision on changing location. The Company is obligated to provide to the registration authority an application on changing the legal address with the abovementioned Decision. Final set of documents for state registration of changing the company’s address can’t be handed over to the registration authority before 20 days since the moment of inputting the information in the EGRUL about the decision made by the company concerning changing the legal address. 

-           At the same time simplification of some procedures of incorporation was occurred. For example, starting from December 29, 2015 the term of state registration of incorporation is carried out not longer than in 3 business days starting with the day of providing the documents to the registration authority.  

2.         Labor Law 

Starting from January 1, 2016 agency work is forbidden in Russia. Pursuant to the Law agency work means performance of works upon direction of the employer but to the benefit of another individual or legal entity (not being the actual employer).  

However, temporary providing the employee is allowed to private employment agencies and employer companies, when providing their employees to work in an affiliated company. In this case the providing party enters into employment agreements with employees and a personnel provision agreement with the accepting party. 

Should any questions arise in connection with the above or if you need any additional materials, please contact LEINONEN specialist. 











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