SANCTIONS AGAINST INDIVIDUAL ENTREPRENEURS MIGHT BE EASED AFTER THEIR BANKRUPTCIES

The day before, a draft law changing the provisions on sanctions that follow the bankruptcy of individual entrepreneurs has been submitted to the State Duma.

We should recall that now among these measures, there are a five-year ban on the opening of a new individual enterprise, as well as a ban on the opportunity to hold leading positions in commercial organizations for the same period.

It is proposed to replace the five-year period with a three-year one with the proviso that it can be reduced to two years, if at the time an individual entrepreneur was declared insolvent, he did not have debts to the budget.

Such a measure is aimed at some leveling of the rights of individual entrepreneurs and owners of commercial organizations, since for them, in the event of bankruptcy of legal entities, there are no similar legal consequences. In this connection, individual entrepreneurship may look like a less profitable form of commercial activity.

An additional bonus is the rule stipulating that in the event of an amicable agreement in the process of bankruptcy of an individual entrepreneur, the ban on his or her further entrepreneurial activities will not be imposed at all.

According to the initiators of the draft law, the innovations should significantly improve the business climate in Russia.