Participating in SARs is becoming easier

Sep 01, 2020

Draft Federal Law amending the Federal Law "On International Companies and International Funds" was published on the Federal Draft Legislation Portal (https://regulation.gov.ru/) on 25 August 2020. 

The Draft aims to clarify the current regulation of international companies, as well as to expand the list of potential participants of special administrative regions (hereinafter – the "SAR") and provides, inter alia:

• the right to acquire the status of international companies for foreign companies that do not do business in the Russian Federation;

• the procedure for the "transit" re-domiciliation, i.e. multi-stage re-domiciliation to Russia in case the foreign company is re-domiciled from one foreign jurisdiction to another;

• the possibility to keep the status of an international company after reorganizations; and

• the right to obtain information on an international company, access to which has been restricted, for a person acting on behalf of the international company based on a notarized power of attorney.

The Draft is currently undergoing the anti-corruption review, and in case of its successful completion, the Draft will be submitted for consideration to the State Duma in September.

Please find below more detailed information regarding the Draft.

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Ekaterina Lazorina

Ekaterina Lazorina

Partner, Tax Services, PwC Russia

Tel: +7(495) 967 6370

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