companies are actively moving to English
In 2022, 49 international organizations with “Russian roots” depending on regulated deviations in domestic offshores – individual climate deviations (CAP). This is almost twice as much as for the whole of 2021, published by the Ministry of Economic Development.
Special administrative regions in Russia are territories with a flexible tax and currency regulation regime for companies that have decided to transfer from a foreign jurisdiction to a Russian one. One such area is located on Oktyabrsky Island in the Kaliningrad region, and the other on Russky Island in Primorye.
According to the Ministry of Economic Development, at the end of September, 107 participants were gathered in the SAR: 106 international companies and one fund. Since the beginning of this year, 49 companies have moved to offshores, while for the whole of 2021 only 27 organizations have registered there.
So, basically, there is a special interest in the SAR on Russky Island. The number of residents there has more than doubled. Now 11 international companies are registered in this offshore, including: Interros Capital, a structure of the Siberian Coal Energy Company, PJSC Polyus. With 17 more places of work, if possible, their re-registration in this area. At the same time, companies previously registered in Cyprus most often go offshore, the Ministry of Economy specified.
In March, Russian President Vladimir Putin signed a law simplifying the process of moving to “Russian offshores”. Patterns of moving to special administrative zones of a business that was established before March 1, 2022. Previously, such company owners registered before January 1, 2018
It is also quite acceptable for Russians and foreigners to register personal funds in “Russian offshores” with the status of international asset management. According to experts, this allows reducing corporate control and getting a number of companies out of control. The value of the assets of a personal fund at registration must be at least 5 billion rubles. Also, companies do not need to allow activities in the territory of several states. In addition, the term for the provision of foreign investments has been increased from six months to one year, the term for the provision of repeated documents – from 10 to 30 working days.
The law extended until January 1, 2039 the possibility of applying foreign corporate law for international companies. Another document extended the validity of the exclusion that moved to a special administrative international organization from the register of foreign legal entities from six months to two years. Also, the term for the first audit of the participants of “Russian offshores” has been increased to one year.