Legal Entity Digital Profile

Digital profile of a citizen of the Russian Federation

• Digital profile of a citizen of the Russian Federation

Single platform with services for small and medium businesses

• Single platform with services for small and medium businesses

Chronicle

2023

Banks in Russia will receive detailed information about legal entities through Public services

On November 17, 2023, it became known that the Ministry of Digital Development of the Russian Federation had prepared a draft resolution, which provides for the expansion of the list of these legal entities available through the Public services. It is assumed that this initiative will make it easier for companies to receive preferential financial services.

As of November 2023, the personal account of the legal entity on Public services displays information from the Unified State Register of Legal Entities/Unified State Register of Legal Entities, data on the presence and blocking of accounts, debts to the state, etc. The new Ministry of Digital Development initiative assumes that in addition to the specified information, data on the specifics of the organization's activities, in particular on the accreditation of IT companies, licenses and obtaining support in the field of small and medium-sized businesses, will be available in the profile.

Ministry of Digital Development is preparing to expand the list of these legal entities

In particular, as reported by the Vedomosti newspaper, through the Public services, information will become available about the constituent documents of the legal entity, about the heads, owners, beneficiaries of companies, about taxation and about the organization's performance of tax duties, including tax returns, payments and debts. Banks and credit institutions will be able to request this information.

The Ministry of Digital Development, together with the Bank of Russia and the community of financial market organizations, proposes to expand the list of information that can be contained in the digital profile [on Public services] and transferred from it to organizations, - the Vedomosti newspaper quotes statements by representatives of the ministry.

It is noted that the expansion of the list of these legal entities or citizens will expand the range of government and commercial services and banking products provided. And this should increase the efficiency of companies and reduce the time for processing certain documents.^[1]

Connect First Company

The "Digital Profile of the Organization" has been launched in Russia, which will allow businesses to offer electronic services without providing documents. The first to connect to the system was VSK Insurance House, which his press service announced on September 7, 2023.

The "digital profile of an organization" is a set of digital records about companies (legal entities, individual entrepreneurs) contained in information systems of state bodies and organizations. The system, by analogy with the "Digital Profile of a Citizen," contains legally significant information from various state information systems. Connecting to the system will allow organizations to receive various services in digital format without providing documents.

Insurance House VSK connected to the system "Digital profile of the organization"

For example, when receiving insurance services for a client organization, two data structures are available: an extract from the Unified State Register of Legal Entities or Unified State Register of Legal Entities and information about the organization's vehicles. The "digital profile" allows UL/PI VSK customers to provide an array of information about the organization and insured cars without providing paper documents. The data is provided by the user's consent, expressed in the personal account of the Public services.

The "digital profile" will allow our customers to collect the documents necessary for concluding a transaction online and in a reliable format that does not require re-filling and long-term verification. Such an opportunity will allow you to quickly receive insurance services, "says Olga Sorokina, a member of the board of directors of VSK Insurance House. - Introducing innovations aimed at meeting the needs of customers is a strategic task of VSK. Connecting to the "Digital Profile of the Organization" is an important step by which VSK confirms its obligation to provide high-quality and modern services, saving the client's time and simplifying the insurance process.[2]

The digital profile of an entrepreneur in Russia will be replenished with data from the Ministry of Internal Affairs and the Federal Tax service

On July 12, 2023, it became known about the decision of the Ministry of Economic Development to expand the composition of information that is used to fill the digital profile of the entrepreneur. In particular, data from the databases of the Ministry of Internal Affairs, the Federal Tax Service, the Ministry of Digital Industry, the Ministry of Digital Development and other departments will be added there.

According to the Izvestia newspaper with reference to the corresponding draft resolution, the digital profile mechanism is necessary for targeted selection and proposal of various support measures for small and medium-sized businesses (SMEs). Thus, it makes it easier to receive benefits.

The digital profile of an entrepreneur in Russia will be replenished with data from the Ministry of Internal Affairs and the Federal Tax service

The initiative of the Ministry of Economic Development testifies to the continuation of the digitalization process and the connection of more SMEs to modern forms of interaction between business and the state, said Anatoly Kolesnikov, associate professor of the Department of Corporate Governance and Innovation of the Plekhanov PRUE.

CEO of MSPA Corporation Leksander Isaevich noted that the launch of a digital profile allowed more than 6 thousand entrepreneurs who use it to receive updates on their business on a regular basis.

The press service of the Federal Tax Service told the newspaper that the more information there is in the digital profile, the faster and easier the entrepreneur will be able to receive support measures.

At the same time, experts admit a threat in the form of a potential leak of business-sensitive information. However, the state is making significant efforts to preserve data and protect it from all kinds of attackers, experts say.

Including information about business debt in a digital profile will not be a problem, but a solution. The entrepreneur learns that he has some kind of debt, will be able to pay it off and then apply for support measures, - said Alexander Isaevich from the SME Corporation.[3]

2021: Start creating a "Digital Profile" for legal entities

On January 13, 2021, it became known that the creation of a "Digital Profile" for legal entities began in Russia. The relevant issue was taken up by the FinTech Association (AFL), established by the Bank of Russia and the largest participants in the financial market.

As Tatyana Zharkova, CEO of AFL, told Izvestia, this project is aimed at increasing the efficiency and speed of business maintenance, as well as simplifying the work of financial institutions with data on companies from state IT systems.

The Central Bank of the Russian Federation told the publication that the request to create a "Digital Profile" of the legal entity came from the market, and the regulator fully supports the development of the project, including for companies. The Central Bank of the Russian Federation also noted that the mechanism will allow entrepreneurs to provide financial institutions with verified data about themselves in the "one window" mode.

The creation of a "Digital Profile" for legal entities begins in the Russian Federation

Ak Bars, VTB, Promsvyazbank, Crimean RNKB and Sovcombank plan to participate in the work on the project. This possibility is also being considered by ДОМ.РФ.

The creation of a "Digital Profile" for legal entities will reduce the number of necessary actions for an entrepreneur to open an account, allow him to manage business data online, and also increase security when exchanging information, according to the RNKB. Sovcombank sees the technology as an opportunity to reduce document flow.

As the bank Zenith told Izvestia, the "digital profile" of the legal entity minimizes the risk of falsification of documents. As for the reduction of service failures associated with the "anti-money laundering" law, the project will be able to show its effectiveness after synchronization with the platform being developed by the Central Bank. " Know Your Customer In addition, refusals can be reduced taking into account the prompt receipt of information that was previously provided in a more complex and long-term way, Zenit emphasized^[4]

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