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Russia is reforming corporate governance

14 Sep

Russia is reforming corporate governance

Russia is reforming corporate governance

The authorities of the Russian Federation issued Order No. 1723-r, which formulates ways to improve legislation in the field of corporate governance and improve the business climate. Among the changes, it is also planned to amend the Federal Law “On International Companies and International Funds” in terms of clarifying the requirements for a foreign legal entity that can be granted the status of an international company or an international fund.

The Russian authorities have decided to increase the geography of countries whose legal entities will be able to “move” to special administrative regions – Fr. Russian and Fr. October. Now the bill has already been submitted to the Ministry of Economic Development and the Bank of Russia. It can be concluded that the legislators are loyal to the changes, which means that the corresponding law may appear already at the beginning of 21, and not in May, as planned by the Government of the Russian Federation. However, this bill has not yet been approved by the State Duma deputies.

These changes will increase the number of regional groups that have the opportunity to change their legal address and “move” to Russia, i.e. make “re-domiciliation”. Legislators are trying to attract domestic and foreign capital by creating a special zone with preferential taxation. Companies even from the so-called “black (offshore) zones” of the FATF will be able to move to the Russian harbor. states that do not comply with their recommendations (for example, do not disclose ultimate beneficiaries), such as the Bahamas, Mauritius, Panama, Samoa, and Seychelles.

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