A bill on criminal liability for illegal registration of IE has been introduced in the State Duma

The government has drafted and submitted to the State Duma a bill on the introduction of criminal liability for the illegal registration of an individual as an individual entrepreneur (IE). The corresponding document was published on December 27 in the Duma electronic base.

"The Government of the Russian Federation submits for consideration of the State Duma of the Federal Assembly of the Russian Federation the draft federal law "On amendments to Articles 173 (illegal formation of a legal entity through front persons) and 173 (illegal use of documents for the creation of a legal entity) of the Criminal Code of the Russian Federation", - stated in the document.

According to the document, in the period from 2019 to 2023 in Russia annually registered more than 1 million citizens as sole proprietorships and legal entities, 78% of which are individual entrepreneurs.

It is specified that in case of adoption of the bill for illegal registration of a physical person as an individual entrepreneur will face either a fine of up to 300 thousand rubles, or up to three years of compulsory labor. In addition, it is also proposed to apply the illegal use of documents for registration of IE under the article.

In addition, the authors of the bill proposed to establish a contribution to the disclosure or investigation of a crime in exchange for exemption from criminal liability.

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Earlier, December 9, the government approved the toughening of punishment for fake entrepreneurs. The bill proposes to amend the Criminal Code, aimed at establishing criminal liability for actions related to the illegal registration of individuals as individual entrepreneurs.

Before that, on November 28, it was reported that in the Russian Federation the number of those employed in the sphere of small and medium-sized entrepreneurship has increased one and a half times since 2019, when the national project to support it was launched. In 2023, the number of those working in this sector reached 31.45 million - this includes sole proprietorships and self-employed, follows from the report of the Ministry of Economic Development "On the state of small and medium-sized entrepreneurship in Russia and measures for its development in 2019-2023".