Reducing the administrative burden on small and medium-sized businesses

On April 06, 2022, Federal Law No. 70-FZ of 26.03.2022 "On Amendments to the Code of Administrative Offences of the Russian Federation" comes into force, which is designed to reduce the administrative burden on small and medium–sized enterprises, including microenterprises (hereinafter referred to as "SMEs"), as well as socially oriented non–profit organizations (hereinafter referred to as "SO NPOs").

Thus, a ban is being introduced on bringing a legal entity to responsibility for committing an administrative offense if its official or other employee was brought to administrative responsibility for the same violation. The rule will be valid if the legal entity has taken all measures provided for by the legislation of the Russian Federation to comply with the rules and regulations.

Previously, the practice of bringing to administrative responsibility both the organization and the official, through whose fault an administrative offense was committed, was widespread.

In addition, the amount of the administrative fine of SMEs and SO NPOs will be equal to the fine for individual entrepreneurs, if it is provided for by the relevant article. If a fine is not provided for individual entrepreneurs, the organization will be assigned an administrative fine in the amount of half of the minimum to half of the maximum amount of the fine for a legal entity or in the amount of half of the amount of the administrative fine, if it is fixed.

These rules will not apply:
when imposing an administrative penalty, if sole proprietors bear administrative responsibility as legal entities;
if at the time of the violation the organization was not listed in the register of SMEs.
Also, more than one administrative penalty may not be imposed if two or more offenses are detected during one control and supervisory event and responsibility for which is provided for by one article (part of the article) The Code of the Russian Federation on Administrative Offenses. If the responsibility is provided for by different articles, then the most severe punishment will be imposed.