Changes in legislation

Starting from September 1st, 2020 the Federal Tax Service of the Russian Federation gains a right to close down sole entrepreneurs by force. This provision is recorded by the amendments to the law №129-FL «On state registration of legal entities and sole entrepreneurs», adopted in November 2019.

Earlier the removal of sole entrepreneurs from the Unified State Register of Sole Entrepreneurs (EGRIP) without their consent was possible only under the court decision or in cases of the right reversion or end of residence period in Russia of a foreign resident – entrepreneur.

Now the authorities of the Federal Tax Service of the Russian Federation might declare sole entrepreneurs inactive and remove them from the register, if the following conditions are at the same time observed on the date of the arrival at a decision:

• when 15 months passed after the patent expiration date or failure to provide accounts to the Federal Tax Service within last 15 months;
• active arrears and tax, fee and due liabilities.

According to the data of the Federal Tax Service of the Russian Federation, as of August 1st, 2020, 4 021 658 active sole entrepreneurs and farms are registered. In the previous year this number amounted to 4 037 199. During 2020, 862 sole entrepreneurs and farms were liquidated under court decision.

Subscribers of the Information and Analytical system Globas can get all the available information (including historical data) on sole entrepreneurs and farms.