A presentations on the quality and accuracy of data in the companies register: Federal Tax Service of Russia experience

1. Quality and accuracy of data in the companies register:
FTS of Russia experience
North Macedonia
April 9, 2019
Vitaly Kolesnikov
Head of Directorate
for Taxpayers Registration

2. 2
Unified State Register of Legal Entities
since 2002
4 002 664
legal
entities
1 000
new
entities a
day
over
10 000
entries a
day
84
registration
offices

3. 3
Data protection
Centralized storage
Data processing
Data exchange
Registration offices
Main DPC Backup DPC
Centralized system for processing of registration data
3

4. FTS Register Office
• A company is informed about the registration
A company applies for registration
In person
Electronically
Company
representative
Input of data Automatic
verification
Recording into
the register
Decision-making
By notary
Оne-stop-shop
Unified business process for registering a company
4

5. • Matching data with the Ministry of Interior
• Founders status (pending liquidation)
• Running restriction to conduct registration
activities
• Matching with the register of disqualified
persons
• Fictitiousness risks
• Legal capacity of the applicant
• Company name
• Company address
• Previous noncompliance with registration
requirements
• Objections of stakeholders
• Records about deaths
Basic automatic verifications for decision making
5

6. 6
Administrative
liability
Making a note that
the data is not
accurate in the EGRUL
Excluding non-active
legal entities
Refusal in
registration
Publicity of the
companies register
Criminal liability
Simple and handy
online registration
services
Providing data via
cross government
e-data sharing system
Ensuring data quality and consistency

7. 7
FTS Register Office
• Company director and majority owner
are not allowed to incorporate new
companies until invalid data is corrected
• Counterparties are aware of possible risks
of dealing with such persons
Updating
the
register
Identifying
discrepancies
Proposing to
correct data
Correcting
data
Data is
not
corrected
for 1
month
Tagging data
as invalid in
the registry
Federal Law № 67-FZ of March 30, 2015
Cleaning Register Data
7

8. 8
Cleaning Register Data
8
Making a note that
the data is not
accurate in the EGRUL
Register extract
(example)

9. > 6 moths after
a procedure for excluding from the register
is initiated
> 81 740 companies (2%)
excluded from the register due to
failure to eliminate inaccuracies
> 191 328 companies (5 %)
corrected their data
9
> within 3 months
after the publication a decision to exclude
a motivated objection can be submitted
9
Exclusion of companies that failed to eliminate inaccuracies

10. 2018 20192017
32% 12% 6%
2016
27%
• ID details
• Nonactive companies
• Shell companies
• Technical errors
Share of data mismatches, 2016 - 2019
10

11. Vital events
registering Authorities
Federal Customs
Service
Unified State Register of
Legal Entities
Extra-budgetary Funds
11
Licensing Authorities
CourtsMinistry of the Interior
FTS of Russia
Russian Financial
Intelligence UnitCredit institutions
11
Updating EGRUL using data from 3rd parties

12. Cross agency
e-data sharing
100 592,4 thd. calls
Business risks: check
yourself and your
counterparty
221,6 mil. calls
Integration and
access to EGRUL
data base
E-extracts
12,8 mil.
www.egrul.nalog.ru
EGRUL
12
Data from EGRUL is provided electronically

13. 13
13
www.egrul.nalog.ru
2015 2016 2017 2018
22%
74%
85%
91%
Share of data provided electronically
13
Providing e-data from the companies register (G2C, G2B)

14. 2016 2017 2018
8%
14%
2019
25%
34%
Share of e-registrations of companies
14
Improving e-registration of companies

15. Thank you for your attention!