Starting a new company in Russia is often a time and cost intensive process. Sometimes it can take months and cost a small fortune in legal fees to avoid any discrepancies, define the structure of managing bodies of the company and their competences, and produce an accurate description of the procedures for the day-to-day activities of the company. To encourage investment and entrepreneurship, the process needed to be simplified.
As of December 29, 2015, a provision of the Civil Code of the Russian Federation has given legal entities the right to use a model charter approved by an authorized state body instead of a charter individually developed by the participants. However, the Ministry of Economic Development had not provided the model charter templates until August 1, 2018.
After the Order of the Ministry of Economic Development comes into effect on June 24, 2019, limited liability companies will be able to choose one of 36 premade model charters most appropriate for their situation depending on:
- The rights and obligations of participants
- The methods of executive body formation
- The procedures during participant meetings.
Companies will select the most suitable model charter and inform the registration authority in accordance with legislation. This supports entrepreneurship by allowing potential business owners to avoid the expense (in both time and money) of creating a custom charter with the help of a team of lawyers.
Model charters do not contain information on the name, location, or amount of charter capital of a company – this information is only in the Unified State Register of Legal Entities. The charter does not need to be presented while registering or to any third parties, it is enough to provide with the link to the charter or even only the number of the charter if any request arises. It is unnecessary to make amendments to the charter if there are changes to the company information or in legislation.
How can SCHNEIDER GROUP help?
We are glad to provide you with our services and recommendations on the feasibility of using a model charter for your company and to assist in selecting the right one.
Information about a special service that will help legal entities find a suitable model charter is being developed and was published on the Federal Tax Service website. However, the launch date has not yet been reported.
Our specialists have developed a service that automatically selects a standard charter based on the features of your company. If you would like to try the simple, clear, and convenient service or get acquainted with the text and main characteristics, please contact us and we will give you access absolutely free of charge.
We are happy to advise you on the choice of a standard charter and how it applies to your particular business situation.