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New business opportunities: companies can now be the sole founders of LLCs and JSCs

2025-07-24 18:00 Legal Digest News
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

  1. Review existing charters – Updates may be needed to align with the new rules.
  2. Assess your corporate structure – Determine whether new subsidiaries would benefit your business.
  3. Optimize decision-making processes – Eliminate redundant approval steps.

How ACSOUR Can Assist

  • Corporate structure analysis – Identifying optimization opportunities.
  • Charter amendments & registration – Ensuring compliance with new requirements.
  • Legal transaction support – Facilitating subsidiary establishment.
  • Corporate governance advisory – Maximizing the benefits of these changes.

Act now to leverage these new rules starting August 1, 2025!

Submit a request, and our experts will help you adapt your business to the updated legal framework.