The new amendments to the relevant laws (the Civil Code and the Law on LLCs) provide for how to formalize in the charter the right of an LLC participant to withdraw from the company. Notaries will be obliged to apply to the tax office for registration of such an exit on their own. The rules on the moment of transfer of the ex-participant's share to the company will be clarified.
The laws have been published and will come into force on August 11, 2020.
It will be possible to grant the right to leave the LLC to the participants listed in the charter or to those who, for example, have a share of a certain size in the authorized capital. In addition, it will be possible to determine the right to exit in dependence of:
It is now not prohibited to reflect such conditions in the charter, but, probably, not all companies are aware of this opportunity.
Besides, the notary who certified the application of the LLC participant on its withdrawal will have to apply to the tax office to make changes to the Unified State Register of Legal Entities on its own. The term for it will be two working days from the certification day. The tax inspection will have to respond with a document confirming the changes. Once such response is received, the notary will have three working to send a copy of his application to the company.
According to the current regulation, it is the company who shall apply to the tax inspection.
In addition, the transfer of the share to the company upon withdrawal of the participant will be deemed effective on the date when the corresponding entry is made in the Unified State Register of Legal Entities. Now the share is transferred from the date of receipt by the company of the participant's application for withdrawal.
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NAZALI TAX & LEGAL |