Federal Law N 291-FZ of of August 3, 2018 on special administrative areas in the territories of the Kaliningrad region and Primorsky Krai (machine translation)

The Federal law of August 3, 2018 N 291-FZ “On special administrative regions in the territories of the Kaliningrad region and Primorsky Krai”
Date of signature 3 August 2018
Posted on 6 Aug 2018
Shall enter into force on 3 August 2018.
Adopted by the state Duma on July 26, 2018

Approved by the Federation Council on 28 July 2018

Chapter 1. Generalities

Article 1. The subject of regulation of this Federal law

1. This Federal law regulates relations arising in connection with the establishment and operation of special administrative regions on the territories of the island of Russky (Primorsky Krai) and the island of Oktyabrsky (Kaliningrad region), taking into account their geopolitical situation, and also aims to accelerate their socio-economic development.

2. The creation and operation of special administrative regions on the territories of Russky island (Primorsky Krai) and Oktyabrsky island (Kaliningrad region) are carried out in order to create an investment-attractive environment for Russian and foreign investors.

3. The relations concerning the functioning of the special administrative region on the island of Russian (Primorsky Krai), management bodies of the special administrative region, and also implementation of powers of public authorities, the provisions of the Federal law dated 29 December 2014 No. 473-FZ “On territories of advancing socio-economic development in the Russian Federation” and Federal law dated July 13, 2015 N 212-FZ “About the free port of Vladivostok”. The provisions of this Federal law shall apply to these relations to the extent not inconsistent with these Federal laws.

4. The relations not regulated by this Federal law shall be governed by the legislation of the Russian Federation.

Article 2. The basic concepts used in this Federal law

For the purposes of this Federal law the following basic concepts are used:

1) special administrative region – the territory of Russky island (Primorsky Krai) or Oktyabrsky island (Kaliningrad region), where the legal regime of the special administrative region operates;

2) infrastructure of the special administrative region-a set of the territory of the special administrative region, as well as buildings, structures, structures and other objects, including objects of municipal infrastructure located on the territory of the special administrative region;

3) the authorized body – the Federal Executive authority performing development of the state policy and normative legal regulation in the field of functioning of special administrative areas. Powers of the authorized body concerning the special administrative region in the territory of the island Russian (Primorsky Krai), except for the powers provided by points 1-4 of article 9 of this Federal law, are realized by the authorized Federal Executive authority performing in the territory of the far East Federal district of function on coordination of activity on implementation of the state programs and Federal target programs;

4) management company – a Russian legal entity, which is established in a special administrative region and which is entrusted with the functions of ensuring the functioning of the special administrative region. Functions of the managing company in the territory of the island Russian (Primorsky Krai) are performed by the managing company which according to the Federal law of December 29, 2014 N 473-FZ “about territories of the advancing social and economic development in the Russian Federation” is defined by the Government of the Russian Federation for ensuring functioning of territories of the advancing social and economic development in the territory of the far East Federal district, or its subsidiary;

5) the legal regime of the special administrative region – a set of conditions for the functioning of the special administrative region in accordance with this Federal law, as well as other regulatory legal acts of the Russian Federation, establishing the peculiarities of the legal status of participants of special administrative regions and international companies;

6) the agreement on implementation of activity in the territory of the special administrative region (further-the agreement on implementation of activity) – the agreement signed between the participant of the special administrative region and the managing company establishing types of activity of the participant of the special administrative region in the territory of the special administrative region, conditions of implementation of such activity, the rights, duties and responsibility of the parties;

7) auxiliary types of activity – the types of activity necessary for ensuring activity of participants of the special administrative region performed by persons in the order provided by this Federal law;

8) persons carrying out auxiliary activities-legal entities that are not subject to the legal regime of the special administrative region and who have concluded agreements with the management company on the implementation of auxiliary activities in the territory of the special administrative region;

9) dispute within the special administrative region-dispute, one of the parties of which is a member of the special administrative region;

10) the participant of the special administrative region – the person data on which are entered in the register of participants of the special administrative region.

Chapter 2. Features of implementation in the territory of the special administrative region of powers of public authorities

Article 3. Powers of public authorities of subjects of the Russian Federation in the territory of the special administrative region

The Executive authority of the subject of the Russian Federation in the territory of which the legal regime of the special administrative region works, for the purposes of implementation of activity according to this Federal law makes the decision on creation of the managing company, and also assigns to it the functions provided by this Federal law except for the case provided by this Federal law.

Article 4. Powers of Federal Executive authorities, bodies of social insurance Fund of the Russian Federation in the territory of the special administrative region

1. Federal Executive authorities, bodies of social insurance Fund of the Russian Federation exercise the powers in the territory of the special administrative region according to the legislation of the Russian Federation taking into account provisions of this Federal law.

2. Powers of Federal public authorities, bodies of social insurance Fund of the Russian Federation in the territory of the special administrative region can be performed specially created, including in the territory of the special administrative region, divisions of Federal Executive authorities, territorial authorities of social insurance Fund of the Russian Federation, authorized:

1) in the field of internal Affairs;

2) for supervision and control in the field of civil defense, protection of population and territories from natural and man-made emergencies, fire safety;

3) to exercise the functions of control and supervision over compliance with the legislation on taxes and duties, the correctness of calculation, completeness and timeliness of taxes, fees and other mandatory payments to the relevant budget;

4) for the implementation of state registration of legal entities, individuals as individual entrepreneurs, peasant (farm) farms;

5) in the field of customs;

6) to carry out functions of control and supervision in the areas of sanitary and epidemiological welfare of the population, consumer protection and consumer market;

7) to carry out functions of control and supervision in the field of legal protection of inventions, utility models, industrial designs, programs for electronic computers, databases, topologies of integrated circuits, trademarks, service marks, appellations of origin of goods;

8) to conduct public supervision and control over observance of labor legislation and other normative legal acts containing norms of labor law;

9) on implementation of functions on control of correctness of calculation, completeness and timeliness of payment (transfer) of insurance premiums for obligatory social insurance against occupational accidents and occupational diseases.

Chapter 3. The functioning of the special administrative region

Article 5. Procedure for consideration of an application to operate as a member of the special administrative region

1. A foreign legal entity intending to become a member of a special administrative region (hereinafter – the applicant) shall submit an application to the management company for the conclusion of an agreement on the implementation of activities (hereinafter – the application). The application shall include the following information:

1) full company name of the applicant;

2) the type (types) of activity which the applicant intends to undertake within the framework of the agreement on the implementation of activities;

3) the period for which the applicant intends to conclude an agreement on the implementation of activities;

4) telephone, Fax, e-mail address of the applicant;

5) surname, name, patronymic (if any) of the applicant’s contact person, telephone number, Fax number, e-mail address of such person.

2. The application must be signed by the person (s) entitled to act on behalf of the applicant without a power of attorney.

3. Following consideration of the application, the management company takes one of the following decisions:

1) on the conclusion of an agreement on the implementation of activities;

2) refusal to conclude an agreement on the implementation of activities.

4. Credit institution non-Bank financial institutions, operators of payment systems and operators of payment infrastructure services are not recognized by the participants of the special administrative regions, and they can not be contracted on the implementation of activities.

5. The grounds for refusal to conclude an agreement on the implementation of activities on the basis of the application, as well as the grounds for its unilateral termination at the request of the management company are:

1) non-compliance of the application with the requirements established by this Federal law;

2) failure to submit the documents provided for in article 6 of this Federal law;

3) refusal in the state registration of the applicant in the unified state register of legal entities in the order of re-domicilation;

4) refusal of the applicant to transfer documents in accordance with the Federal law “on international companies” to the body carrying out the state registration of legal entities.

6. In case of refusal to conclude an agreement on the implementation of activities or termination of a previously concluded agreement on the implementation of activities, the management company shall notify the applicant with a reasoned justification for such refusal or termination.

7. In case of a decision to conclude an agreement on the implementation of the management company within five working days from the date of this decision is obliged to send the draft of such an agreement to the applicant.

8. Model agreement on the implementation of activities, in accordance with which can be contracted on the implementation of activities approved by the authorized body.

9. The grounds for termination of the agreement on the implementation of activities are:

1) expiration or early termination of the activity agreement;

2) other grounds provided by the legislation of the Russian Federation.

10. The management company shall enter into the register of participants of the special administrative region a record on termination of the status of a participant of the special administrative region within five working days from the date of expiry of the contract on the implementation of activities, or the date of signing by the parties of the agreement on termination of the contract on the implementation of activities, or the date of entry into force of the court decision on termination of the contract on the implementation of activities.

Article 6. Documents attached to the application

The application shall be accompanied by documents confirming the applicant’s compliance with the requirements for an international company, as well as other documents provided by the Federal law “on international companies” to obtain the status of an international company.

Article 7. Procedure for granting the status of a member of the special administrative region

1. The state registration of an international company as a re-domicile is the basis for its inclusion in the register of participants of the special administrative region.

2. The management company is obliged to enter data on the participant of the special administrative region in the register of participants of the special administrative region no later than one day from the date of state registration of the international company.

3. An international company is recognized as a member of the special administrative region from the date of entry in the register of participants of the special administrative region.

Article 8. Requirements to the person applying for implementation of auxiliary types of activity in the territory of the special administrative region

The person applying for implementation of auxiliary types of activity in the territory of the special administrative region shall have the status of the legal entity registered in the territory of the Russian Federation in the order established by the legislation of the Russian Federation.

Article 9. Authorized body

The authorized body shall exercise the following powers::

1) definition and implementation of the state policy in the sphere of creation and functioning of special administrative regions;

(2) approval of the model Treaty on the implementation of activities;

3) approval of the standard form of the arbitration agreement on the transfer of disputes arising from the contract on the implementation of activities to the arbitration court administered by a permanent arbitration institution;

4) definition of requirements to the report structure of the management company and terms of its placement in the information and telecommunication ” Internet”;

5) other powers in accordance with this Federal law.

Chapter 4. Features of implementation of activity of participants of the special administrative region

Article 10. General conditions for the activities of the members of the special administrative region

1. Activity of the participant of the special administrative region is performed according to this Federal law, other regulatory legal acts of the Russian Federation and the agreement on implementation of activity.

2. The activities of a member of the special administrative region shall be consistent with its objectives.

3. Control over compliance of activity of the participant of the special administrative region to the agreement on implementation of activity is exercised by the managing company.

Article 11. Rights and obligations of participants in the special administrative region

1. The participants of the special administrative region have the right:

1) receive land and build infrastructure in the manner provided by the land legislation and the legislation on urban development;

2) to involve persons engaged in ancillary activities;

3) identify supporting activities;

4) enjoy other rights provided by the legislation of the Russian Federation.

2. Participants in the special administrative region are required to::

1) submit an annual report on its activities to the management company;

2) in good faith and properly perform the duties provided by the legislation of the Russian Federation and the agreement on implementation of activity.

Article 12. The agreement on the implementation of activities

1. The agreement on the implementation of activities is a civil contract. In the part not regulated by this Federal law, the provisions of the civil legislation of the Russian Federation shall apply to the agreement on the implementation of activities, as well as to the relations arising from such agreement.

2. The contract on the implementation of activities may contain an arbitration agreement on the transfer of disputes arising from the contract on the implementation of activities to the arbitration court administered by a permanent arbitration institution. The transfer of disputes arising from agreements on the implementation of activities to the arbitration court formed by the parties to resolve a particular dispute is not allowed. Arbitration agreements on the transfer of disputes arising from contracts on the implementation of activities to the arbitration court formed by the parties to resolve a particular dispute are invalid.

3. The agreement on the implementation of activities may be amended, which are formalized by an additional agreement to the agreement on the implementation of activities. The supplementary agreement shall be concluded in the same form and in compliance with the same requirements as provided for by this Federal law for the agreement on the implementation of activities.

4. Termination of the contract on the implementation of activities is allowed by agreement of the parties or by a court decision. The agreement on the implementation of activities may be terminated by the court at the request of one of the parties in connection with a material breach of the terms of such agreement by the other party or on other grounds provided for by this Federal law.

5. In case of termination of the contract on the implementation of activities, the person loses the status of a participant in the special administrative region.

Article 13. The characteristics of the activities of the management company

1. The management company performs the following functions:

( 1) overall organizational management and coordination of activities in the special administrative region;

(2) maintenance of the infrastructure of the special administrative region;

3) adoption of decisions on granting or deprivation of the status of the participant of the special administrative region;

4) conclusion of agreements with the participants of the special administrative region on the implementation of activities;

5) maintenance of the register of participants of the special administrative region and providing to public authorities of the documents confirming the status of participants of the special administrative region;

6) provision, if necessary, to the participants of the special administrative region of the services necessary for the implementation of the relevant activities (including legal services, accounting services);

7) other functions in accordance with this Federal law and the Federal law “On international companies”.

2. The management company performs the functions specified in part 1 of this article independently and has no right to charge third parties with the implementation of these functions or otherwise transfer to third parties the right to perform them.

3. Financial support of the management company’s activities is carried out at the expense of the management company’s own funds, as well as at the expense of other sources in accordance with the legislation of the Russian Federation.

4. The management company is obliged to place annually in the information and telecommunication “Internet” the report on the activity.

Chapter 5. Features of regulation of separate relations in the special administrative region

Article 14. Legal regime of the special administrative region

In the territory of the special administrative region the legal regime for participants of the special administrative region established by this Federal law, and also other regulatory legal acts of the Russian Federation establishing features of the legal status of participants of special administrative regions and the international companies works.

Article 15. Control over the activities of the management company

Control over activity of the managing company is exercised by Executive authority of the subject of the Russian Federation to which it is created, except for the case provided by part 3 of article 1 of this Federal law.

Chapter 6. Dispute resolution in special administrative regions

Article 16. Jurisdiction of disputes within the special administrative region. Consideration of disputes by the arbitration court

1. Disputes within the special administrative region are subordinated to state courts in accordance with the legislation of the Russian Federation.

2. Disputes within the special administrative region may be referred to the arbitration court in accordance with the legislation of the Russian Federation.

3. In the presence of an arbitration agreement on the transfer of disputes arising from the contract on the implementation of activities to the arbitration court administered by a permanent arbitration institution, disputes related to the peculiarities of granting the status of a participant in a special administrative region, activities under the contract on the implementation of activities can also be submitted to the arbitration court.

Article 17. Enforcement of an arbitral award in a dispute within a special administrative region

1. Proceedings for the issuance of a writ of execution for the enforcement of an arbitral award made in a dispute within a special administrative region shall be governed by the provisions of the Arbitration procedure code of the Russian Federation, taking into account the features established by this article.

2. If there is a direct agreement between the parties to the dispute, the decision to issue a writ of execution for enforcement of the arbitral award shall be made by the Arbitration court of the Kaliningrad region or the Arbitration court of Primorsky Krai within fourteen days from the date of receipt of the application for issuance of the writ of execution without a court session. In this case, the party to the dispute has the right to submit objections to such an application within seven days from the date of receipt of such an application to the arbitration court.

Chapter 7. Final provision

Article 18. Procedure for entry into force of this Federal law

1. This Federal law shall enter into force on the date of its official publication, except for part 2 of article 4 of this Federal law.

2. Part 2 of article 4 of this Federal law shall enter into force one hundred and eighty days after the date of official publication of this Federal law.

3. Until the establishment of the management company in the relevant special administrative region, its functions shall be performed by the Federal Executive authority determined by the Government of the Russian Federation, with the exception of the provision to the participants of the special administrative region of the services necessary for the implementation of the relevant activities (including legal services, accounting services), ensuring the functioning of the infrastructure of the special administrative region.

Russian Federation President

Vladimir Putin