The Government drafted amendments to simplify registration of foreign companies in special administrative districts (SAD). These districts were established in Russia in 2018 to protect businesses from the impact of Western sanctions and to attract big companies to the Russian jurisdiction. The Government submitted the draft to the State Duma.
Suggested amendments include:
- Adjustment of the requirement for the date of establishment of a foreign company for registration in an SAD (1 March, 2022 instead of the current one – 1 January, 2018);
- Removal of the requirement to confirm activities in several states;
- An extension of the period during which foreign companies must make an investment to one year (currently six months);
- An extension of the period allowed for submission of documents confirming investment to 30 working days (currently 10 working days);
- An extension of the period for applying standards of foreign corporate law to international companies until 1 January, 2039 (for another decade) (currently – until 1 January, 2029);
- An extension of the period for the removal of an international company that transferred to an SAD from the foreign registry of legal entities to two years (currently six months);
- An extension of the period for the initial audit of the SAD participants to two years (currently one year);
- Introduction of temporary relaxation of the requirements (for the entire year of 2022) regarding the package of documents for transferring to an SAD;
- The possibility of registering international personal funds on the territory of an SAD and depositing Russian property worth no less than five billion roubles there.
Special Administrative Districts operate on Russky Island (Primorye Territory) and Oktyabrsky Island (Kaliningrad Region). Residents of these districts are entitled to preferential taxation.