In Russia, the process of voluntary closure of the company will be simplified

The Government of the Russian Federation has introduced a bill that simplifies the process of closing a business – it will be enough to apply then the company will be liquidated by the tax inspectorate. The purpose of the law is to free the owners of an inactive business from negative consequences in the form of a ban on obtaining the status of an individual entrepreneur in the future and the registration of new companies. New restrictions for former managers come if the company was liquidated forcibly by the decision of the tax inspectorate.

What is the process of business liquidation now?

The former head appoints a liquidator, who publishes messages about the beginning of the liquidation of the company, submits an interim balance sheet, passes a desk check.

The term of liquidation of the business is up to 18 months. In practice, this process will take at least 5-6 months.

Moreover, this procedure requires payment of state duties and notary services.

How do you intend to simplify the liquidation procedure?

The government proposes to limit the entire process to filing an application for business termination.

To do this, companies must meet certain requirements:

– A business should not be a VAT payer.

– Not to have debts to creditors and the budget.

– There are no movable and immovable property on the company’s balance sheet.

After submitting the application, the tax inspectorate makes a record of the beginning of the liquidation of the business and creditors will have the right to declare their claims within three months.

Thus, the business liquidation procedure will be reduced from 5-18 to 3-4 months.