The Government approved to reduce the period of registration for new legal entities

A bill of the reduction of period of registration from five to three days for individual entrepreneurs and legal entities, which are established for the first time, was introduced in the State Duma. According to the Prime-Minister of the Russian Federation Dmitrii Medvedev, the simplification of registration procedure will make the Russian business environment more attractive both for domestic and foreign investors.

The Prime-Minister also noted, that the reduction of period of registration will positively influence on the position of Russia in the international DoingBusiness rating. The rating is annually published by the World Bank and estimates the profitableness of doing business in different countries. According to 2014 results, Russia took the 62 place among 189 countries; the leader of the rating is Singapore.

However, the business-community representatives think, that the reduction of legally established terms for registration of legal entities and individual entrepreneurs won’t significantly influence on business activity level. The businessmen note, that today the difficulties are caused not by the procedure duration, but by the number of forms, which are required to fill. Thus, the most popular reason of denial of registration is the mismatch of submitted application form to the established requirements. The application form must be simplified as much as possible or the staff of registration authority must be obligated to make an application at the place of handling in order to optimize the registration process.

It should be reminded, that the bill was developed by the Ministry of Economic Development of the Russian Federation in the summer 2014. The original version obligated banks to make a decision about opening of the account within 10 days. However this offer was excluded from the final version of the project, as the Central Bank didn’t support it.