Starting a new company in Russia usually takes between a few weeks and three months. Individualizing foundation documents, such as a charter, is a time and cost intensive process. To encourage investments and entrepreneurship, the process needed to be simplified, especially when using standard templates could be sufficient for an investor’s needs.
Since 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 did not approve each individual model charter template until August 1, 2018.
After the Order from 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 regarding:
- 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, in accordance with legislation, inform the registration authority. This supports entrepreneurship by allowing potential business owners to create a legal entity quickly and efficiently.
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. When registering, the charter does not need to be presented, so it is unnecessary to make amendments to it if there are changes to the company information or in legislation.
A special service that will help legal entities find a suitable model charter is being developed, according to the Federal Tax Service website. However, the launch date has not yet been reported.
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.
Of course we remain at your disposal to develop individualized company charters corresponding to specific requirements, if none of the model charters fits.