The Cabinet of Ministers may simplify the registration of companies for individuals from unfriendly states

The issue of simplifying the conditions necessary for registration of legal entities in the Russian Federation by foreigners from unfriendly states is being actively discussed. At the moment, such investors need to obtain a decision from the government commission. The authorities believe that the state needs to attract investments nowadays.

Among other issues to be investigated, the issue of simplifying the licensing procedure for the creation of legal entities by foreign investors is being actively discussed. Regulators believe that foreign investors who are citizens of unfriendly states and willing to invest in Russian business should be given this opportunity.

It should be mentioned that, in accordance with Decree No. 618, a special procedure has been established for conducting transactions with shares in Russian companies since September 2022. According to this legal act, such transactions with the participation of subjects of unfriendly states may be carried out upon the permission of the government commission. However, this procedure does not apply to individuals-investors of friendly states.

The authorities also explain that amendments to the law on public-private partnership are currently being prepared and the changes will require an extensive amount of investment. It is about an amount of 10-15 trillion rubles per year. In order to implement projects of this level, all possible sources of financing are critical, including foreign direct investment. Officials dwell on the fact that the legislation in the field of direct investment is significantly outdated and over the past three decades, Russian companies have invested about $2 trillion in foreign assets, while about $1.2 trillion has come to Russia. It is believed that states of Africa, the Middle East and Southeast Asia are primarily interested in investing in Russian business.

According to regulators, the existing plans to simplify the registration of legal entities in the Russian Federation for foreign investors are still at the level of ideas. It is not yet known how this will happen, what steps will be taken, what requirements will alter and in what time frame.