1. Normative and organizational
novations in registration
Mr. Vitaly Kolesnikov
Head of Registration of taxpayers
Directorate of the FTS of Russia
Rio de Janeiro
2014

2. Until July 1, 2002
After July 1, 2002
over 4,5 thds. registration authorities
absence of single registration rules
time needed for registration is 30 days or more
absence of unified forms of documents proving
registration
Absence of a single resource dedicated to registered
legal entities
registration is conducted by tax authorities
unified rules for registration
maximum time needed for registration is 5 working
days
unified forms of documents proving registration
USRLE has been created
data from USRLE (except for personal data) is
available for public
a «one stop shop» principle has bee implemented
Creation of Unified State Register of Legal
Entities (USRLE)

3. Federal data
Base USRT
(ITN)
Other registry authorities
Russian State
Register
Authority for Road
Traffic Safety
Information about property
owners (land)
Information about vehicles
owners
USRLE
(information about registration of legal
entities о in tax authorities)
2003 год – 1,4 mln. 2013 год – 4,5 mln.
legal entities
Information provided by legal
entity (approx. 95% - about
separate unit establishing)
Registration of legal entities
with tax authorities (foundations)

4. Reception and
registration of
documents
(also in
electronic form)
Input of
data from
the
application
Declining
registration or
State registration. Information
input to USRLE/USRIE
SENDING THE DOCUMENTS TO THE APPLICANT
Certificate, record or decision to decline
DECISION MAKING
with regard to checks results
Protocol
Business process – Registration of
legal entity (5 working-days)
Checking if there are any entries about disqualification
with regard to directors (for legal entities)
Verification of commercial names
of legal entities
Verifying if the name of legal
entity matches with Olympic and
(or) Paralympic symbols
Verification of passport data for individuals
(source of information – Federal Migration Service)
Verification of information about notaries who
certified the applicants’ signatures
Checking if the documents filed along with application are sufficient and correct
Checking if there is no injunctions for registration
Verification of fidelity of
provided information,
including address
Checking if there is no objections of parties of
interest

5. Digital signature
open registries of
certificates
to acquire a key and a
certificate it is required to
present an ID
certificate can be nullified
There are 91 Certifying centers in 332 cities of Russia accredited in the
authorized state body
nullified
certificates
Government
services portal
Websites of
governmental
bodies
FTS of Russia
website
Price from 30$
Reporting
State registration
services Control

6. E-Documents
Are stored in registry authority
(USRLE)
It is possible to receive copies of documents and information
from register in electronic form upon the request
Record sheet
Federal state bodies
Courts
Securities market
Authorized bodies of other
countries
Insurance and credit
organizations
Electronic trade platforms
Claimants and participants
of civil relations
@
@
@
@
@
@
@
Other authorities
@
Record sheet,
certificates

7. Since 2002
1. Failure to file documents prescribed by the federal law
2. Misfiling (filing with a wrong registration authority )
3. If USRLE contains an entry that the legal entity is being liquidated
______________________________________________________________________________________________________________________________________
Since 2009
4. The filed documents are inconsistent with notarial forms
5. An application was signed by an unauthorized person
6. If participants withdraw from an LLC leaving no participants therein
7. The name of the legal entity is inconsistent with federal law
8. The required data is not validated by other authorities taking part in registration procedure
Legally set basis for declining registration
Since July 2013
9. Absence of data registration in authority on transfer of assets at liquidation of unitary enterprise
10. The ID information stated in the application is inconsistent with data provided by authorities issuing
such IDs
11. The registration authority received written petitions from individuals objecting from making entries
about them into USRLE
12. The registration authority receives (before making entry into USRLE) a court or a court bailiff’s act
containing an injunction from registration
13. An individual – settler (participant) of a legal entity – is deprived of a right to do business by a court
judgment (for the duration of this judgment)
14. If a person with full authority or an individual entrepreneur – governor of a legal entity - is a
disqualified person (for the duration of disqualification)
15. The registration authority has hard copy information that the information about address (residence) of
a legal entity is incorrect
Registration upon application
Limited number of basis for rejecting the registration:

8. Negative implications of presentation of uncertain
(misleading) information when registering
Individual Preventative
Bringing information
to unspecified
persons through e-
services
In 2013
Number of protocols of bringing to administrative liability - more than 20 thousand
Register of disqualified persons contains information about 1722 persons
(including pursuant to Article 14.25 of Administrative Code - disqualified 834 persons)
Criminal liability
The Criminal Code of the
Russian Federation
article 170.1.
article 171
article 173.1.
article 173.2.
Administrative liability
Administrative Offences
Code of the Russian
Federation
article 14.1.
sub-article 1. fine
article 14.25.
sub-article 3. fine
sub-article 4. fine,
disqualifying
Legal entity liquidation
Input in USRLE information
about information
uncertainty
Tax Code
Russian Federation
article 116

9. USRLE Statistics
Limited liability companies- approx. 3,7 millions,
+ other forms of legal entity’s incorporation 916,5 thousands:
From all registered legal entities in 145 628 foreign companies or individuals are
founders
+
Registered with tax authorities:
12 872 foreign companies (relative to activities through subdivisions, and under another Tax
Code provisions)
2 187 409 foreign citizens
More than 1300 Mutual investment funds operate all over Russian Federation
other non-profit
organizations
(75,6)
Doubleliabilitycompanies(1,2)
Limitedandunlimited
partnerships(831)
Other commercial
enterprises (19,7)
Unitary
enterprise
(25,5)
Production co-operative
(31,5)
consumer co-
operative
(81,2)
Joint
stock
compa
nies
(32,2)
State and
municipal
organizations
(303,3)
companies, registered
(214,5)
Limited
compa
nies
(131)

10. 271
588
836
1166
1386
2108
2471
0
500
1000
1500
2000
2500
01.01.2008 01.01.2009 01.01.2010 01.01.2011 01.01.2012 01.01.2013 01.01.2014
Ways to close a business.
Dynamics of taking non-operating legal
entities off the register upon the decisions of tax authorities
*non-operating legal entities –entities that during the year neither file accounting reports with tax authorities nor make transactions on accounts (Article 21.1 of
Federal Law “On state registration of legal entities and individual entrepreneurs” dated 08.08.2001 №129-ФЗ
Liquidation
Bankruptcy
Reorganization
Other grounds
Taking
non-operating
legal entities off
the USRLE upon the
decisions of tax
authorities
thds.

11. USRLE content
documents and information on the legal entity
Originals or notary order copies of constituent documents of the legal entity;
 Company Name: in Russian full / short / corporate
 + one of the languages ​​of the peoples of the Russian Federation and (or) foreign language (if specified in
the constituent documents);
 TIN / tax registration event code and date of registration with tax authorities;
 Information on the legal form;
 Codes of economic activities;
 Address;
 Information about the founders (participants);
 The authorized capital (equity capital, the authorized fund, shares);
 Information about licenses;
 Information on branches and representative offices;
 Methods of formation (termination);
 Date of registration of changes and information on Succession;
 Information on registration as an insurer by the Pension fund and the Social security fund;
 Information about the person having the right, without the power of attorney to act on behalf of
the legal person: name, surname, first name, position, TIN, data of identity document;
 Information about that entity, a business entity is in the process of reducing its authorized capital;
 Information about that entity is in the process of liquidation (reorganization);
In case if there are any changes of the information contained in USRLE, formerly included information remains stored

12. FTS official web-page
State Registration
Openness principal is a basic value of democracy.
This approach implies the creation of transparent mechanisms for governmental bodies
operation, and feedback tools which enable the citizens to interact with state authorities

13.  Information about legal entities and individual entrepreneurs, documents for state registration (including
state registration of amendments made into articles of incorporation of a legal entity and making changes
into USRLE entries on legal entity) thereof have been filed with registration authority/64 618 902
FTS of Russia e-services
 Information published in «State Registration Bulletin» magazine on the prospective exclusion of non-
operating legal entities from USRLE
 Legal entities executive bodies of which include disqualified persons / 1 043 870
 Addresses stated as a place of residence by several legal entities / 11 347 369
 Information on persons, who refused to participate (be a director) in business during the court trial or in
respect to which the court established that fact / 318 801
 Information on legal entities that are impossible to communicate with on the address (place of residence)
stated by them and entered into the USRLE / 879 058
 Information about legal entities included into USRLE (publication) / 585 mln.
Number of calls to a service in 2013
More than 31 thds. attributes of access to USRLE data has been provided via Internet
 Messages of legal entities regarding liquidation, reorganization, charter capital reduction, acquisition of
20% charter capital of other company by LLC published in «State Registration Bulletin» magazine, and
other messages of legal entities subject to publication in accordance with Russian legislation
It is planned to create NEW services providing information on legal entities which:
- do not submit tax returns - have arrears to the budget and - about individuals - mass leaders (founders)
Open government data – information regarding state and local authorities operations posted in
Internet as bulk data in the format providing its automated processing for the purposes of repeated
use without manual adjustment (machine readable format) and implying its free (without charge) use

14. Roadmap «Registration of enterprises
optimization»
• reduction of time needed for state registration;
• reduction of number of documents filed for registration;
• reduction of the number of registration actions requiring notary verification of applicant’s
signature;
• increase the share of e-registration;
• increase availability of e-services,
including e-means of notifying taxpayers which do not require to visit tax authority personally
Indicator 2011 2012 2013 2014 2015 2017 2018
Position in “Doing business”
rating on «Starting a
business» indicator
106 105 101 88 70 30 20
Number of procedures 9 9 8 7 5 3 3
Time needed to start a
business, working days
30 29 18 15 13 7 5
Cost of starting a business,
RUB
6 100 6 100 6100 5 400 4 550 4 200 4 000

15. Thank you for your
attention!