The State Duma increases penalties for registration and use of “fictitious” sole proprietors
The new initiative is aimed at combating shadow schemes and strengthening the rule of law in the field of entrepreneurship. As part of strengthening the legal regulation of entrepreneurial activity in Russia, the State Duma is considering a bill criminalizing the fictitious registration of individuals as individual entrepreneurs. The document, initiated by the Government of the Russian Federation in December 2024, was approved by the Committee on State Construction and Legislation and sent for the second reading. According to the amendments, the provisions of Article 173.1 of the Criminal Code of the Russian Federation, which previously dealt exclusively with the illegal creation of legal entities, will also apply to the registration of sole proprietors using forged documents or through front persons. What does the bill provide for: • fine up…