How to avoid a company’s exclusion from the state register

Starting from September 1, 2017 due to changes in Federal Law No. 129-FZ dated 8 August 2001 “On the state registration of legal entities and individual entrepreneurs,” the tax authorities have the right to exclude from the EGRUL operating companies for which the register contains a record on inaccuracy of information for more than six months.

How inaccuracies happen

A record on inaccuracy of information regarding the legal address in the EGRUL is entered by the tax inspectorate on the basis of the audit materials. The audit is conducted by inspectors of the tax authority to identify discrepancies. For example, the inspector can check the actual location of the company at the registration address. Also, the basis for entry into the EGRUL of a record on inaccuracy of information is the absence of a reference in the legal address of the company to specific premises occupied by the legal entity.

Before entering a record of inaccuracy, the inspectorate must submit notification to the company and provide the company with 30 days to confirm the accuracy of the information. If the company does not take measures within the specified period to cure the breach, the inspectorate can enter a record of inaccuracy and after 6 months exclude the company from the EGRUL.

What is at stake?

The entry into the EGRUL of a record on inaccuracy of information entails

  • the possibility of refusal of registration actions,
  • blocking of bank accounts;
  • also, there may be problems with the import and/or export of goods by a company in respect of which such a record is entered into the register.

The exclusion of a legal entity from the EGRUL may entail the possibility of refusal in registration actions for three years. A mandatory condition for refusal is the existence of debt to the treasury.

In addition, submission of inaccurate information about a legal entity entails the imposition of an administrative fine on officials in the amount of five thousand to ten thousand rubles, and re-submission of inaccurate information may result in the disqualification of an official for a period of one to three years.

What can I do to prevent all this?

To avoid adverse consequences, SCHNEIDER GROUP recommends that you take preventive measures to avoid the entry into the EGRUL of a record on inaccuracy of information, for example, clarify the legal address of the company, without waiting for an audit from the tax inspectorate.

In any case, we recommend that you regularly check the absence in the EGRUL of a record, in respect of the company, on inaccuracy of information, and in the event that a record on inaccuracy of information has been entered, take timely measures to cure the breach.

 What shall I do now?

Get in touch with our experts. We will support you will all relevant information in relation to these changes and are happy to answer your questions.

Alex Stolarsky
Director for Legal, Compliance and Tax
+7 / 495 / 956 55 57
Veronika Kochieva
Legal Team Leader
+7 / 495 / 956 55 57
How to avoid a company’s exclusion from the state register
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