The GNS withdraws the draft law on subsidiary liability of founders of LLCs

Ирина Орлонская Politics
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The State Tax Service of the Kyrgyz Republic announced that the draft law introducing subsidiary liability for the founders of limited liability companies has been withdrawn. This decision is related to the need for additional analysis of its provisions, studying international experience, as well as assessing the legal and economic consequences.

The agency emphasized that the current legislation allows participants of LLCs not to be personally liable for the company's obligations, limiting the risk of losses only to the amount of their contributions to the authorized capital. This approach was created to stimulate entrepreneurship and promote business development.

However, the authorities noted that such a legal structure is often used by unscrupulous individuals to evade fulfilling obligations to the state or creditors. In this regard, the proposed changes to the legislation, which provided for personal liability of LLC founders for tax debts, caused significant public resonance and criticism from the business community.
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