Entrepreneurs to be released from obligation to provide incorporation documents to Rosreestr

In 2017, the Federal Tax Service of Russia (FTS) tested and launched the technology of provision of the incorporation documents of legal entities in electronic format. In the near future, the Federal Service for State Registration, Cadastre and Cartography (Rosreestr) will arrange online cooperation with tax authorities to release entrepreneurs from excessive bureaucracy. Data contained in the Uniform State Register of Legal Entities will be available for all e-government participants, as reported to asi.ru by Larisa Usovich, the head of ASI working group on property registration.

Before this, an entrepreneur applying for registration of ownership had to personally confirm its status as the company’s founder, submitting a paper extract from the Unified State Register of Legal Entities to the registrar.

“For business, the necessity to convert all the services into the electronic form is long overdue,” stated Larisa Usovich. “Now the matter depends on Rosreestr, which has to fine-tune its IT resource with the possibility of uploading the data from tax authorities, as soon as possible”.

Larisa Usovich explained that the procedure will become automated; at the registration of a company, FTS employees will enter data about it into the Unified State Register of Legal Entities, access to which is provided to Rosreestr representatives as a part of interdepartmental interaction.

According to Dmitry Voronkov, head of department of monitoring of entrepreneurial initiatives of “New Business” direction of the ASI, this change will enable Russia to advance in Doing Business international rating by “Ownership Registration” parameter.

“Last year, rating experts of the World Bank calculated that property registration in Russia took 15 days. When new procedure of state registration of property enters into force, this term will be reduced almost twice,” noted Dmitry Voronkov. “Besides, it will be possible to receive electronic extracts from the Unified State Register of Rights to Real Estate and Transactions Therewith and the Uniform State Register of Legal Entities, which will make the life of entrepreneurs easier. We hope that methodical work on reduction of these administrative barriers will bring additional points to our country this year.”

Russia is ranked among TOP 10 countries in Doing Business rating for “Ownership Registration” (9th place in the report of Doing Business 2017). In January 2017, a federal law entered into force which provides for establishment of the Unified Register of Real Estate and the Unified Registration System. According to the new standards, registration of title will take no more than 7 days in case of electronic application. Cadastral registration will take no more than 5 working days.

REFERENCE

According to para. 2.6 of the roadmap “Raising quality of state services in the sphere of state cadastral registration of real estate and state registration of title to real estate and transactions therewith”, the FTS, Rosreestr and the Ministry of Communications shall provide to the authorities dealing with state registration of title and cadastral registration access to the incorporation documents contained in the Uniform State Register of Legal Entities, which were provided in the course of state registration by the legal entities, in electronic form.