The law on the simplified liquidation procedure for small and medium-sized businesses will come into force on July 1st

From July 1^st, 2023, a simplified liquidation procedure will begin to operate for legal entities that are small and medium-sized businesses. To use the new procedure, the company’s participants must make a unanimous decision and submit an application for exclusion from the register of legal entities.

The application can be submitted by personally visiting the tax service, through a notary, or electronically using an enhanced qualified electronic signature.

For the tax service to decide on the upcoming exclusion of a company from the Unified State Register of Legal Entities, the company must meet the following requirements:

• The presence of an entry about the company in the register of small and medium-sized companies

• Company is not a VAT payer

• Settlements have been made with creditors and employees, there is no debt on mandatory payments

• Does not own real estate and transport

• Company is not in the stage of liquidation, reorganization or bankruptcy, is not excluded from the Unified State Register of Legal Entities by the decision of the Tax Service

• The company has no debts on taxes, fees, and contributions

• The company should not have a record of unreliability of information

After checking the application, the Federal Tax Service independently conducts procedures related to liquidation: publishes information about the decision in the Bulletin of State Registration and informs creditors how they can send their objections. If the organization does not receive objections from creditors within 3 months, it is excluded from the Unified State Register of Legal Entities.

This procedure for voluntary exclusion from the Unified State Register of Legal Entities will significantly simplify the procedure for small companies, as well as shorten the exclusion period for bona fide organizations.