The party's Omsk branch was closed by a local court June 19 because its membership fell below the 250 minimum stipulated by law.
The judges upheld a motion from a local department of Russia's Federal Registration Service, which said the branch's membership consists of 125 members, and rejected claims by party representative Andrei Krutov that it consists of 2,149 members.
The court ruled that 1,431 membership applications had been falsified, as all of them had been written by the same person.
Krutov said the court's conclusions were groundless, as no official handwriting analysis has been conducted.
He said the branch will consider filing an appeal with a supervisory authority.
The Party for the Development of Entrepreneurship is a small liberal party, which garnered 0.4% of the votes in the 2003 parliamentary elections, thereby failing to reach the 5% threshold needed to take up seats in the lower house of parliament, the State Duma.
The party, led by Duma deputy Ivan Grachyov, will reportedly join a new democratic alliance being organized by the western-leaning Union of Right Forces (SPS), which also failed to reach the 5% threshold in the 2003 elections.
