The State Duma of the Russian Federation has approved in the first reading a bill that lifts the ban on the creation of so-called "matryoshka firms". This document will allow legal entities to establish companies whose sole founder may be another organization created by one person. The bill was introduced by the Government of the Russian Federation, and earlier the Ministry of Justice came up with a similar initiative.
The adoption of amendments also provides for the possibility for the sole owner of the organization to simultaneously hold the post of sole executive body. According to the developers of the document, this should simplify corporate governance and make business structures more flexible.
According to the explanatory note to the bill (No. 797057-8), the existing ban on the creation of such companies has lost its relevance, especially in the context of sanctions pressure. The government notes that the lifting of restrictions will allow businesses to more effectively structure their activities and more clearly divide areas of responsibility between management at different levels.
The initiative has caused a mixed reaction among experts. On the one hand, it simplifies corporate processes and can facilitate business development in difficult economic conditions. On the other hand, there is a risk of increasing non-transparent business schemes and a possible increase in the number of fictitious companies.
The law firm "Nadmitov, Ivanov and Partners" advises private clients on various issues, and also represents their interests in arbitration courts and courts of general jurisdiction, as well as in international commercial arbitration.
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