According to the new amendments, if a limited liability company (LLC) has only one founder who is also the sole participant in another business entity, such structures must not be under the control of a foreign company, either directly or indirectly.
Furthermore, the law introduces joint subsidiary liability for companies that have only one participant. Such companies will be liable for the obligations of:
- other companies of which they were or are participants;
- companies in the ownership chain where the sole participant is fully affiliated with another business entity.
The registration of new companies is prohibited if the chain of such "sole" entities exceeds three levels of ownership.
The provisions on subsidiary liability in Article 143 of the Civil Code have also been clarified: state authorities and municipal structures are excluded from the subjects to which this rule applies.
The Cabinet of Ministers is required to conduct explanatory work with businesses within a month and align its decisions with the new law.
