Starting August 1, 2025, amendments to Russian legislation will come into effect, allowing single-shareholder businesses to establish subsidiary LLCs and joint-stock companies (JSCs) without involving additional founders. This is a significant change that will simplify corporate governance structures and holding company formation.
Key Changes
A company with a single shareholder will be permitted to act as the sole founder of another LLC or JSC (currently prohibited).
Notarization of decisions by a sole shareholder will no longer be required unless stipulated in the company’s charter.
Exceptions may be introduced by specific federal laws.
Why This Matters
Streamlined subsidiary formation – No need to engage nominal founders.
Reduced bureaucracy – Notarization of sole shareholder decisions becomes optional (unless specified in the charter).
Greater holding company flexibility – Enables more transparent and controlled ownership structures.
How to Prepare
Review existing charters – Updates may be needed to align with the new rules.
Assess your corporate structure – Determine whether new subsidiaries would benefit your business.