Hello. Today we will consider regulation of commercial activity. Setting up new business, foreign investors should be aware that in the Russian Federation, most business activities are subject to state regulation. Regulation may concern the conditions of business activities, for example notification of starting new business, licensing or mandatory membership in industrial professional entities. Regulation may also concern employees qualification or goods quality, such as employee certification or goods certification. In addition, regulation may concern the performance of business activity. For example, foreign trade regulation, currency regulation, or consumers right protections. Let's start with regulation concerning the conditions of business activity. So, regarding certain types of business activity, notification of starting is required. Those business activities include; hotel and lodging services, restaurant and catering services, retail and wholesale, printing and publishing, production of food and non-food products of certain types and also transportation services of certain types, et cetera. Notification is required in order to exercise control, state control over those types of business activities. Notification is governed by the federal law on the protection of legal entities and individual entrepreneurs right at state and municipal control procedure. Number 294-FZ of the 26th of December 2008. An individual entrepreneur or a legal entity, shall notify a competent executive body, in case they organize a new business or for type mentioned above. A competent body depends on a type of business activity. There are the federal service of supervision over consumers right protection and human well-being, the federal bill medical agency, the federal transport, supervision service and some others. In notification papers, an individual entrepreneur or legal entity confirms their business activity is in compliance with all mandatory requirements prescribed by legal acts. Notification should be made after state registration and tax registration, but prior to the beginning of performing business activity. If an individual entrepreneur or legal entity has already performed a type of business activity that is not required notification and has decided to expand the scope of activity by a type of business activity that is required notification, they should notify a competent executive body before beginning any new type of business activity. After having preceded their notification, an individual entrepreneur or a legal entity shall also notify a competent executive body in case of changing an individual entrepreneur's residence or a legal entity location, as well as in case of change of place of performing business activity. In case of failure to submit the notification, or if the notification papers content fake or incorrect information, administrative liability may be imposed on the individual entrepreneur or a legal entity, provided by the code of administrative offences of the Russian Federation.
