New Rates for Business Registration and Official Responsibilities for Registration Delays

The Cabinet of Ministers has issued a regulation establishing unified rates for the registration of businesses regardless of their type of activity. The registration of a natural entity (businessmen) will cost 1.5 untaxed minimum of citizens’ income (UMCI, now Hr 17) and that of a corporate one seven UCMIs. A business can be registered in one day at triple the cost of normal registration. State registration of changes and supplements to founding documents will cost 30% of the registration fee. The price of issuing a certificate duplicate has been lowered from 40% to 10% of the cost of registration. Re-registration of companies due to changes in the law will be free unless otherwise specified by law. Under the new regulation, if the term of registration is longer than allowed by law (five days) the registering body is to pay the applicant 20% of the amount of the registration fee from its own funds for each overdue day but not more than the amount of the total registration fee.

Another clause states that effective July 1 the State Tax Administration and Statistical Service will be barred from accepting quarterly reports from companies registered before April 29, 1994 and not been re-registered as specified by law. Such companies can receive a new certificate by July 1 for 20% of the regular registration fee. After July 1, re-registration will cost the full regular fee. 70% of the funds generated from registration fees will go to local budgets in the registering jurisdiction, and 30% is to stay with the state registration body to cover registration expenses (previously it was 50-50).