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Russian OOOs to Re-register
The Russian Government has approved amendments to the Civil Code, the law on limited-liability companies (OOOs) and the law on the registration of legal entities and self-employed entrepreneurs. The amendments aim largely against fly-by-night companies. All limited companies will also have to obtain a new registration.
An OOO (limited liabilities company) is a form of enterprise where ventures do not bear the liability of the company and run losses only within the sum of their shares. The nominal capital must be at least 100 minimal salaries (10,000 rubles) and the number of ventures – no less than 50.
An array of problems has cropped up over the ten years since the law on limited companies has been in force. Ventures of an OOO have unlimited opportunities to leave the company, which violates rights and interests of the company’s creditors and ventures who stay, the Trade and Economic Development Ministry maintains. This makes a limited company the widest-spread and the most convenient type of a business legal structure to create sham firms to evade taxes. The possibility to step up freely is often used as a means to evade property claims for losses inflicted on the company and its creditors. A free withdrawal from the company with the payment of the venturer’s share prompts other participants to leave too.
Andrey Sharonov, Deputy Trade and Economic Development Minister, said yesterday the amendments were to make it impossible to set up fly-by-night companies and ensure the more stable work of the companies. Now all 1.3 million OOOs registered in Russia will have to undergone the procedure again.
www.kommersant.com
All the Article in Russian as of July 29, 2005
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