Not every type of activity can be practiced freely. Certain species require the fulfillment of special conditions in order to comply with the requirements of the law. In addition to the fact that any activity must be registered, in order to engage in certain types of entrepreneurship , the necessary license is additionally required. We learn about the licensing of certain types of activities from special acts. In particular, there is the Law "On licensing of certain types of activities" with the number one hundred twenty-eight, adopted by the State Duma of the Federal Assembly of the Russian Federation on July 13, two thousand and one, and entered into force on August 8, two thousand and one. Article seventeen of this law defines an exhaustive list of activities subject to licensing. There are one hundred and five points in this article, that is, we have quite a few varieties of entrepreneurial activity that require licensing. These types of activities include, for example, work
- on the development, production, repair and testing of aircraft;
- distribution, maintenance, services, production and development of encryption tools;
- on the development and technical protection of information;
- with military equipment and weapons and the like.
The legislation on the licensing of certain types of activities provides for the mandatory receipt of a permit to conduct banking activities. Why is this needed? In order to make the banking system more stable and reliable, protect the interests of not only creditors, but also investors. Before starting a business, any bank is required to obtain the necessary license, which clearly defines all operations that are permitted by this commercial organization.
What is banking licensing ? This is the receipt by a commercial bank of a special, prescribed by law, permission to perform specific operations. But for the branches of these banks, an independent license is not required; they act on the basis of the license of their bank and with written permission.
So, the bank as a commercial organization in accordance with the Federal Law on the licensing of certain types of activities must initially obtain this license for the following operations:
- deposit of citizens and organizations (accepting contributions from them);
- opening of customer accounts and their maintenance;
- factoring and leasing;
- provision of safes and safekeeping;
- Issue and turnover of paychecks;
- bank card services;
- consulting services.
In addition, banking organizations attract borrowed funds, are liable for risks.
In addition to having a license for certain types of banking activities, permission from the Central Bank is also required. These operations include:
- activities with currency values;
- issue of securities (own) of the bank, including by client’s order;
- investment activities in relation to other organizations;
- issue and circulation of lotteries;
- collection services and some other operations.
No bank will receive a license to conduct production activities and classical trade, insurance, with the exception of intermediary services.
The Central Bank gives a license to a commercial bank subject to all conditions:
- fully paid up authorized capital;
- availability of necessary equipment and machinery;
- availability of suitable premises for the bank;
- availability of the Board of Directors.
For operations requiring the written consent of the Central Bank, you must initially obtain the license itself, have the required regulatory capital, submit a business plan to the Central Bank, prove financial viability for banking operations, have the appropriate units and fulfill other required conditions of the Central Bank of Russia.