The aim of this alert is to provide brief review of the most important amendments. However, it is recommended to get familiarized with the text of respective legislative acts, in order to understand the new rules fully.
Presidential Decree # 415 dated 8 November 2022 «Measures to further improve the legal framework of corporate relations».
In order to further improve the organizational and legal framework for the activities of commercial organizations, the following is envisaged:
From 1 December 2022, the following requirements will be abolished:
- creation of internal audit services for limited liability companies and joint-stock companies with a state share of 50% or more and state unitary enterprises, the book value of assets of which is less than 100,000 of the size of specified base value;
- state registration of the Charter Agreement of a limited liability company;
- notarization of the power of attorney issued to representatives of the participants of the limited liability company to participate in the general meeting;
- establishment of the size of the reserve fund of limited liability company at the level of at least 15% of their charter capital.
In order to protect the rights of participants (shareholders) and creditors of entities, the following requirements will be established from 1 April 2023:
- non-monetary contributions to the charter capital of a limited liability company which worth more than 10,000 of the specified base value have to be assessed by the valuation organization and cannot exceed the assessed value;
- in the reorganization of legal entities, the rights and obligations of enterprises are considered to have passed to the reorganized legal entity.
From 1 July 2023, information on the establishment of branches, representative offices and the formation of the charter capital, as well as the initiation of a case on the insolvency of an entity, is published on the Unified Portal of Interactive Public Services.
Presidential Decree #244 dated 9 November 2022 “On measures to simplify the state regulation of entrepreneurial activity”.
From 1 January 2023, the following requirements will be abolished:
- written notification to creditors and announcing in the media a decision to reduce the charter capital of a business entity;
- sale of new imported cars only by legal entities – official dealers of manufacturing enterprises;
- suspension of electricity supply to legal entities that have consumed electricity in excess of the volumes specified in the electricity supply contract (monthly contractual volume);
- separate registration in the bodies of the state tax service of employees hired by an individual entrepreneur by registering them in the Unified National Labor System.
From 1 March 2023, taxpayers are granted the right to appeal directly to the court against decisions made by the tax authorities based on the results of on-site tax audits and full tax audits;
From 1 January 2023, a special legal regime “Regulatory Sandbox” (hereinafter referred to as the Special Legal Regime) is introduced, which provides for special regulation of the activities of business entities that are a legal entity to test new products and services or the results of other intellectual activity based on modern technologies in a controlled limited environment in the areas provided for in accordance with this Decree.