A draft law introducing an email address when registering legal entities is being prepared

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The State Duma is working on a bill on the Business ID, which will allow
companies to use an email address instead of a legal address. It is also planned
to create a new digital platform for the implementation of this initiative.

The Parliament plans to consider this bill in the autumn, after it has
been agreed with the relevant departments. Many experts agree that the adoption
of the bill will help to mitigate the requirements for company registration,
the absence of the need to rent premises will allow companies to direct more
funds to development.

In foreign jurisdictions, companies often resort to the service of
providing an email address. This address is indicated in the company’s
corporate documents, it can be used for official purposes. For example, in Hong
Kong, an email address is already used to receive correspondence from
government authorities. It can be used by both individual entrepreneurs and
legal entities.

  • Current
    legislation and advantages of the company’s email address

According to the current legislation, when registering a company, it is
mandatory to indicate the location of its permanent executive body. In a
practical sense, this creates obstacles for small companies, since they need
premises for rent and the opportunity to specify it as a legal address, while
not all landlords agree to provide their premises for the official address of
the company. In addition, employees of many companies can work remotely, and
the employer does not consider it necessary to maintain an office for

With the advent of a virtual address, the company receives a so-called
Business ID, which will be assigned using a special digital platform. For the
use of Business ID, all conditions will be created within the framework of
Russian legislation, the current legislation concerning the legal status of
legal entities and individual entrepreneurs will be adjusted. At the same time,
business participants will be able to independently choose a more convenient
way for them to obtain legally significant documents – at a virtual address or
at a legal address, the chosen method will be reflected in the Unified State
Register of Legal Entities and thanks to this, counterparties will be able to
track the correct address for sending documents. In addition, at this stage of
the discussion, it is proposed to keep the address of the company’s location in
the Unified State Register of Legal Entities for carrying out control measures
by state authorities.

The authors of the bill believe that now the presence of premises for
the executive body is not a guarantee that the company actually carries out its
activities, since employees can work remotely, meetings can be held through
online services, and documents do not have to be signed in person, you can do it
using an electronic digital signature. Therefore, the requirement to have a
legal address entails optional expenses for the rental of premises. There are
no changes in taxation when using a Business ID, since the location address
will determine which budget taxes will be paid to.

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