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 Business Guide St. Petersburg Business Guide 

8.1 Activities Requiring a License attention

In the Russian Federation, entities of any legal form and individual entre-preneurs who do not set up a legal entity can carry out certain activities on the basis of a special license issued by authorized licensing bodies. A license is an official document which allows a particular type of activity to be carried out within a specified period of time.

Business and entrepreneurial activities that require licenses are listed in Federal Law ¹ 158-FZ of 2 5 September 1998 «On Licensing Certain Activities».

8.2 The Licensing Process

There are common licensing requirements for various activities.

To obtain a license, an applicant must lodge the following documents with the licensing authorities:

  • a license application stating; for legal entities - name, legal form, place of location, bank name and bank settlement account number; for individual entrepreneurs - name, first name, patronymic, passport information; the type of licensed activity which the legal entity/entrepreneur intends to carry out and period of time for which the licensed activity will be carried out;
  • for legal entities - copies of constituent documents and a copy of the state registration certificate confirming that the applicant is a legal entity (originals should be shown unless the copies are notarised);
  • for individual entrepreneurs - a copy of the state registration certificate confirming that the applicant is an individual entrepreneur (the original should be shown unless the copy is notarised);
  • a statement confirming the applicant is registered with the tax authorities; and
  • a document confirming that the license application fee has been paid.

Depending on the type of activity, licensing regulations may require that other documents confirming that the applicant meets the terms or requirements established by licensing regula-tions be presented.

The applicant cannot be required to submit documents which are not stipulated by Federal Law ¹ 158-FZ or by other applicable licensing laws and regulations.

Licensing authorities charge fees for considering applications. The maximum fee may not exceed three minimum monthly wages as established by Federal Law.

A licensing fee is charged when a license is issued. The fee is established by the Government of the Russian

Federation in the regulations on licensing certain types of activities. The maximum licensing fee may not exceed ten minimum monthly wages as established by Federal Law.

The decision to grant or deny a license is made within 30 days of receiving an application which is supported by all the required documents. Regulations on the licensing of specific types of activities may stipulate shorter periods for adopting decisions to grant or deny licenses.

Licensing authorities are to inform the applicant on the decision taken with regard to granting or denying a license within three days of taking the decision.

A document confirming that a license has been issued should be made available to the applicant no later than three days after he or she has submit-ted a document confirming that the license fee has been paid.

Notification of the fact that the license application has been denied is submitted to the applicant in writing and should indicate the reasons for the denial.

The reasons for denial may be as follows:

  • the documents contain unreliable or misstated information; and
  • the applicant did not comply with licensing requirements and conditions.

The period for which a license is valid depends on the particular activity but generally lasts for no less than three years. However, licenses valid for less than three years can be issued if an applicant so requests. The license may be extended according to the proce-dure established for obtaining a license. In addition, licenses are issued separately for each type of activity It is prohibited to transfer a license to another legal entity or individual. When an organization is liquidated or a state registration certificate of an individual entrepreneur expires, the license becomes invalid. When a legal entity is reorganized or renamed, the licensee must apply for an amendment to the license within 15 days of having introduced these changes.

The term for which a license is valid may be extended through an application of the licensee, unless otherwise stipulated by the Regulations on licensing a particular type of activity A license extension may be denied if violations of licensing terms and requirements were recorded while the license was valid.

Activities conducted with licenses issued by Federal state authorities may be carried out on the entire territory of the Russian Federation. Activities conducted with licenses issued by licensing authorities of a subject of the Russian Federation can be carried out on the territory of that subject of the Russian Federation. Activities conducted with licenses issued by a subject of the Russian Federation can be carried out in other subjects of the Russian Federation once the licensee has notified the licensing bodies of the relevant subject of the Russian Federation, unless otherwise stipulated by Federal legislation that was effective before the Federal Law «On Licensing Certain Activities entered into force».

Authorized licensing bodies may suspend a license in the following situations:

  • when licensing authorities, state supervisory or controlling authorities or other state authorities in their jurisdiction disclose that a licensee has violated licensing requirements and con-ditions which may lead to the infringement of rights, legal interests, morality or health of citizens or of the country's defense and security; and
  • when a licensee fails to refrain from making such violations after being requested to do so by the licensing authorities.

A license may be terminated based on a court decision following the application of either the licensing authority who issued the license or a state authority in its jurisdiction. When the application to the court is made, the licensing authority has the right to suspend this license for the period until the court decision enters into force.

A license may be terminated for the following reasons:

  • the documents submitted with the license application contain unreliable information;
  • the licensee repeatedly or flagrantly violates the terms of the license; and
  • the decision to issue a license was taken illegally

A licensing authority should notify the licensee of its decision to either suspend the license or to file a claim in court to terminate the license. This notification must include moti-vated grounds, and should be pro-vided, in writing, within three days of taking such a decision.

The decision to suspend a license may be challenged in the procedure established by the legislation of the Russian Federation.

A licensing authority must establish a deadline by which a licensee must eliminate the circumstances that entailed license suspension. This period may not last longer than six months. If the licensee does not eliminate the above mentioned cir-cumstances, the licensing authority must appeal to the court to termi-nate the license.

If the licensee eliminates the circumstances entailing license sus-pension, the licensing authority that suspended the license must revalidate the license.

8.3 Authorized Licensing Bodies

A list of federal executive bodies that carry out the licensing of certain types of activities and a list of types of activities licensed by executive bodies o! subjects of the Russian Federation an established in Resolution of the Government of the Russian Federation of 11 April 2000 ¹326 «On licensing certain activities».

In St. Petersburg, licensing is controlled by a single licensing authority – the Licensing Chamber of the Administration of St. Petersburg. Tin Licensing Chamber was formed and acts on the basis of the Regulation (in the Licensing Chamber of the Administration of St. Petersburg, approved by Order ¹ 32-P of 19 April 1999 of the Governor of St. Petersburg.

The Licensing Chamber is located ,1 1/3, Ul. Zodchego Rossi, St. Petersburg.

In the Leningrad Oblast, activities are licensed by a single body, the State Licensing Committee of the Leningrad Oblast.

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