The draft law allows founders (members) to liquidate a non-functioning organization in a simplified manner. According to the information from the Ministry of Economic Development, which developed this bill, at the moment the procedure for liquidating a business takes up to a year, and the new procedure can reduce the liquidation process by almost three times – up to 3.5 months.

If the draft law is finally adopted, the law may enter into force on July 01, 2023.

The draft law proposes to introduce a simplified procedure for excluding small and medium-sized businesses from the Unified State Register of Legal Entities.

Members of limited liability companies will be able to decide on the termination of activities and send an application for exclusion from the Unified State Register of Legal Entities to the registering authority, and the mere resolution of members will be sufficient.

To submit an application, it will be possible either to notarize the authenticity of the signature of the legal entity members, or send an application to the registering authority in the form of an electronic document signed with enhanced qualified electronic signatures of all members.

The registering authority, within five business days from the date of receipt of the application, will decide on the upcoming exclusion and make an entry about the upcoming exclusion of the legal entity from the Unified State Register of Legal Entities, if at the time of making such a decision the following conditions are simultaneously met:

information about the legal entity is included in the unified register of small and medium-sized businesses;

a legal entity is not a VAT payer or is exempt from its calculation and payment;

the registering authority does not have information on the existence of settlements with creditors that have not been completed by the legal entity;

the Unified State Register of Legal Entities does not contain information about the legal entity in respect of which an entry was made about its unreliability;

the legal entity does not have an unfulfilled obligation to pay taxes, fees and other obligatory payments;

the legal entity does not own real estate and vehicles;

the legal entity is not in the process of liquidation, reorganization, exclusion from the Unified State Register of Legal Entities by decision of the registering authority.

In case of non-compliance with any of these conditions, the registering authority will notify applicants that it is impossible to exclude the legal entity from the Unified State Register of Legal Entities.

The decision on the forthcoming exclusion shall be published in the press.

Objections with supporting documents attached may be sent or submitted to the registering authority no later than three months from the date of publication of the decision on the forthcoming exclusion.

If no objections are received within the prescribed period, the legal entity will be excluded from the Unified State Register of Legal Entities.