Stop Fly-By-Night Companies

Every second company in Russia is created for tax evasion. Thus, the State Duma plans to criminalize creation of fly-by-night companies.

The talks of fighting sham organisations as instruments of fraud and corruption have been going on for at least 15 years. In modern Russia, which came into existence in 1991, it means almost the same as ‘since the beginning of times’.

The bill introduces the new article to the Criminal Code ‘Creation of a commercial organization with the purpose of committing a crime’. Those behind sham companies will face five years’ imprisonment. Registration of a company on someone else’s passport will be punishable by three years and those crackpots who for a fee lend their passports to set a sham company will end up behind bars for two years.