OVER 654,000 COMPANIES WERE LIQUIDATED BY THE DECISION OF THE TAX AUTHORITIES

During 2016 the tax authorities removed more than 654 thousand companies from the Unified Register of Legal Entities (the Register). It is 84% of the total number of companies liquidated in 2016. Such activity of tax service is related to the campaign against „short-lived“ companies launched early last year. In order to check if the company is fake, the tax service uses a number of criteria e.g. non-provision of finacial reports for more than one year, and the lack of movement on the accounts etc.In addition, the number of reasons for refusal in registration of the company has increased. Particularly, a person cannot set up new company, if the previous company was excluded from the Register due to the unreliability of the information or company’s debts. In 2016 tax authorities refused to register companies in over 15 000 cases. The main reasons for refusal were unreliable or incorrectly provided information, false legal address and bad faith of the founders or company managers.Main goal of the campaign is to increase amount of honest businesses, and create conditions for healthy competition. It is expected that compared with the previous year the percentage of the companies excluded from the Register in 2017 will be higher.To avoid such situation be sure to use only highly professional services from experienced and reliable legal consultants. VALEN specialists can assist you with registration of company in Russia without refusal.