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Toughening of liability for failure to notify of the start of entrepreneurial activity

On July 19, 2024, bill No. 676837-8 was submitted to the State Duma on toughening responsibility for failure of legal entities and individual entrepreneurs to comply with the notification procedure for certain types of entrepreneurial activity in case the submission of such notification is mandatory. Now administrative responsibility for failure of a legal entity or individual entrepreneur to provide notification is provided for by Article 19.7.5-1 of the Code of Administrative Offenses of the Russian Federation.

The fines are proposed to be increased by the inflation rate since the adoption of the previous law, namely from 2010 – by 145%. If the amendments are adopted, officials will be fined from 7 to 12 thousand rubles (now the fine is from 3 to 5 thousand rubles), organizations – from 24 to 48 thousand rubles (now the fine is from 10 to 20 thousand rubles) Failure to notify about changes in the notification of the beginning of entrepreneurial activity is subject to a fine in the same amount.

The bill introduces liability for repeated violations. Officials will pay from 15 to 25 thousand rubles, companies – from 40 to 60 thousand rubles.

The grounds for imposing a fine will also change – instead of failing to provide notification of the start of entrepreneurial activity, it is proposed to fine a legal entity or individual entrepreneur for conducting activities without such notification.

In addition, in order to improve the efficiency of the supervisory authority, it is proposed to increase the limitation period for bringing to administrative responsibility, established for Article 19.7.5-1 of the Russian Code of Administrative Offenses from three to six months.

If the law is adopted, the amendments will enter into force 180 days after publication of the law.