The Ministry of Economic Development and Trade has submitted to the Russian government a bill allowing “transit” – through other jurisdictions – re-domiciliation to the Russian special administrative regions (SAR), Deputy Minister of Economic Development Ilya Torosov said on Friday at the round table “SAR: two years of success and prospects for further development” organized by “RBC. Conferences”.
Earlier it was reported that “transit” re-domiciliation will be applied if it is impossible to directly change jurisdiction. For this it is allowed to create a new, “intermediate” company. Now this is impossible, since the law only allows the re-domiciliation of those companies that were created before January 1, 2018.
The changes will allow for re-domiciliation from the Netherlands through transit countries, will allow attracting new residents to the SAR, the Ministry of Economic Development and Trade expects. For example, according to Torosov, the Netherlands does not allow re-domiciliation directly, but does not prohibit relocation within the European Union.
The bill also clarifies the consequences of the reorganization of an international company in the event of a merger with another international company or takeover – under the CAP legislation, such a company will retain the original status required for a resident of a special district.
The proposal was prepared within the framework of the roadmap for improving corporate governance.
ATS, into which companies from foreign jurisdictions can re-register, appeared in Russia in 2018. These areas were created as “Russian offshores” on the Russkiy (Primorye) and Oktyabrskiy (Kaliningrad region) islands to deoffshorize foreign holdings controlled by Russians, as well as an anti-sanction measure. In two years, 35 residents have appeared in the Russian SAR: 34 international companies and 1 international fund.