Choosing a Legal Structure for Your Business in Russia

If you are toying with the idea of setting up a business in Russia, one of the foremost decisions that you must make as an investor is choosing the right legal structure for your business. Every legal structure is unique in terms of business transactions, business requirements and the respective taxes. Read on to find out more about the various forms and arrangements of doing business in Russia.

Any foreign legal entity can establish its presence in the country through one of the following means.

Direct Sales

Direct selling involves the importing of goods to Russia without any corporate representations within the country. This usually implies best for business to business transactions and it is the responsibility of the customer to pay the applied taxes before clearing the good from the customs. The investor however is required to pay the VAT and import duty charges which depend on the kind of goods imported and the country from which they come. It is best to hire Russia law firm to help you handle the process smoothly.

Distributorship

Foreign legal entities may also sign a vertical agreement with a Russian firm for selling its products to the Russian audience. Such agreements must comply with the antitrust regulations and the success of such a relationship vastly depends on choosing the most suitable distribution partner.

Representative Offices and Branch Offices (ROs and BOs)

Though physically, a representative or branch office of a foreign company may be present in Russia, it is still considered a foreign legal entity. Both representative offices and branch offices are in charge for carrying out pre-determined functions of the head office and the head office takes complete responsibility of all their actions. The company registration Russia for ROs and BOs are done through the accreditation process by the Federal Tax Service. Once accredited, the tax registration is done by the local tax authorities followed by registration with the Social Statistics Service and Social Security Funds. Most foreign firms hire Russia law firm to complete the process successfully.

Subsidiaries

The most common business structures practised in Russia are LLC (Limited Liability Corporation) and JSC (Joint Stock Companies). The provisions of law concerning both types of establishments are much similar. Foreign companies that operate as a wholly-owned business often opt for LLC. In an LLC structure, the shares owned by the participants are not considered as securities while this is not the case in a JSC. JSC firms can be public or non-public.

The key to operating successfully in Russia is to thoroughly understand the business environment of the country and position oneself suitably. Seeking expert legal help to understand the process of company registration Russia and to gather other relevant information regarding business structures is best recommended.

Why is it Important to Hire a Real Estate Attorney?

Investing is a new land or a building is probably one of the highest financial commitments in your life. Real estate transactions are stressful, demanding and complicated. In the recent years an increasing number of Russians as well as foreign investors have been actively involved in the real estate market. Though the economic growth of the country has been in favor of this industry, the classic problems of real estate still continue to haunt buyers as well as the sellers.

In order to mitigate the legal problems and speed up the process considerably, the assistance of a Russian attorney specializing in real estate law is recommended. Listed here are the top reasons why you must hire a real estate attorney in Russia.

Real estate agents have limited knowledge in legal issues

Most investors in Russia believe that real estate can guide both sellers and buyers through the entire property transaction. This however is not true. Agents may have mastered all knacks and tricks of the industry but when it comes to litigation issues in a property, a Russian lawyer is the right person to seek help from.

Real estate lawyers are not biased

Unlike the real estate agents, a Russian attorney is never biased in offering legal advice. Whether you are hiring a closing attorney while buying a land or taking the help of a real estate attorney for a high-end property, they will ensure all documents and processes are thoroughly reviewed to your best interests.

Real estate transactions demand much paper work

All real estate transactions involve a whirlwind of paper work that needs to happen along with other functions like scheduling inspections, dealing with repairs and negotiating with sellers. In such situations it is much better to have authorized help to assist you with the paperwork.

Real estate transactions are dispute-prone

Real estate transactions involve a lot of people and mistakes can occur with any one of them. Some of these issues can cost you a lot of time and money, and sometimes the property itself. For instance, while purchasing a home you may encounter issues like illegal tenants, unwarranted in-law units or issues with the property title records. With a Russian lawyer who is well-versed with real estate laws, any problem, big or small can be handled smoothly.

Real Estate Lawyers review all documentation

Reviewing documentation is the most important function of a real estate attorney. Peculiar situations such as buyers asking to rent the apartment for a while before being obliged to buy it or the use of uncommon language in your mortgage papers can arise during the purchase process. Legal assistance is essential to ensure all issues relating to documentation are discovered and resolved.

Five Smart Tips for Conducting Due Diligence

If you are an investor looking at a potential acquisition target in Russia or planning to invest in a joint venture with a Russian legal entity, you might need the help of reliable lawyers Russia to ensure that you are risk free and left with no financial liabilities at the end of the transaction. Here are a few tips that you must remember during a due diligence.

Channelize the human capital

Several business studies have reported that failing to manage the human capital of an organisation is the most common reason for merger and acquisition failures. During the diligence process, the lawyers Russia must take the effort to clearly communicate all changes, offer job and other benefits assurance and thus make certain that the talent pool is retained.

Dig deeper into the available information sources and IT systems

Information and technology form the backbone of any business. Therefore the team hired to perform the due diligence must ensure that the buyer’s existing technology infrastructure can be integrated seamlessly into that of the seller. There must be no loss of vital data and the cost of the process must be kept at the minimum level. This cost must be considered while obtaining the financing for the purchase.

Unravel all liabilities

Liabilities in any form can hamper the profitability of the transaction considerably. Hidden liabilities come in the form of environmental issues, legal claims from employees and so on. The due diligence team must work with the management as well as the employees to unravel any form of hidden liability.

Look beyond the balance sheet

Financial statements are a great way to have a complete idea about the assets of the seller. However to know the complete status of the assets along with their quality, the buyer must invest sufficient time and effort to analyse the degree of depreciation of the buildings, equipment, plants and the inventory. A experienced due diligence team will think beyond analysing financial statements and will actually guide you through to obtain first-hand information about the firm’s assets.

Analyse the supply-side and demand –side relationships

In any type of business and especially in the industrial sector, the relationship that a firm holds with its supply chain partners vastly influences its success rate. Strong supplier associations and the good will to attract customers are important strengths of a company. Any discrepancy in these factors must be analysed during the due diligence. No matter what ever type of firm you pick up from the company register Russia, for successful business collaboration either in the form of mergers and acquisitions or joint ventures and franchisees, a well-experienced due diligence team must assist you to minimize all types of risks and keep you away from any potential litigation issues.

Tips to protect your Intellectual Property in Moscow

Conserving intellectual property is a mandatory business need for start ups as well as for well established organisations. Rapid growth in technology and the ease of access to information has caused a steady increase in the need to protect unique product ideas and business strategies.

Here are some tips to help organisations to better safeguard their intellectual property in Moscow.

Keep up the secrecy

IP owners must not leak any information about the idea even during the developmental stages. Your competitors must have no inkling about the work in progress and under no circumstances will you discuss the product or idea in a public platform. A law firm in St.Petersburg states that most ideas die at the nascent stage due to failure of maintaining secrecy.

Record your idea along with relevant evidence

The first step to protect your IP in Moscow would be to legally register it with the help of a Moscow Attorney. Prior to this the owner of the IP must check for any duplication issues and then register it with all details possible. Your idea must be accompanied by relevant and original documents that establish you as the sole creator of the idea.

Draw well-written NDAs

Your ownership of the IP must be exhibited in all documents relating to the idea. Invest your time and thought while drawing non-disclosure agreements with your partners and employees. Documents such as employee agreements, client contracts and partnership agreements must carry the required clauses to protect your IP. Moscow Law firms will be able to best help you with these requirements.

Take professional help

It does not matter if you choose to work with a law firm in St. Petersburg or Moscow, what you need is an attorney who is specialized in dealing with intellectual property in Russia. Research well and finalize on a Moscow attorney or any other part of Russia to assist you smoothly in establishing your patents and trademarks.

Investing in patents and copyrights

While the initial investments for protecting your IP may seem exorbitant, the value of your money will shine through your patents and copyrights in the long term. Of course, business giants like Google and Apple would not invest billions of dollars if they were uncertain about the benefits.

Innovation is an art and so is the technique to monetize your innovation. Take the right steps in finding the right Moscow law firm to protect your IP and reap the financial benefits of your innovative skills.

Guide to Investing in Real Estate in Russia

Russia is proving to be an attractive market for investors in the real estate sector. The rising property prices and the estimated growth in the years to come is a great motivation for investors across the world to consider this hot property market for investments. Many global investors believe that Russian real estate markets are stronger than their European counterparts and have tremendous potential. With the right guidance from Russian lawyers, you can get an excellent investment opportunity as a foreign investor in Russia.

The Capital

Moscow is considered to be one of the most sought after destinations for commercial real estate investments as it offers a great appreciation. The population of Russia is going for a million-plus and this has led to the high demand for residential properties as well. However, before making any investment in Russian properties, it is important to consult a Russian attorney so that you can be clear about the Russian real estate laws and you can get the best from your investment.

The Boom in Investments

A number of foreign institutions like the Deutsche bank Germany have invested $ 500 million for Russian real estate investment. One of the biggest foreign investment in Russia is the Great Domodedovo, a new development project being undertaken near Moscow. These factors have led to various investors come to visit the country and talk to Russian lawyers about making their commercial or residential property investment.

Points to remember while investing in real estate in Russia

• The real estate laws in Russia are slightly different from those in the US or Europe. It is therefore important to thoroughly understand the market scenario and laws with the help of a Russian attorney before you take a final decision.

• The Russian real estate is classified as per the use of the property e.g. leasing, permanent ownership of apartment, ownership of building, certificate of ownership and so on.

• The mortgage laws have undergone various changes in the last few years to welcome investors and this has led to various documentation processes that must be duly completed

• There are different registration laws for immovable property that must be abided by if you want to purchase a property in Russia

• Leases are given to foreign entities for either land, apartments or buildings depending on the requirements and the law that applies

The Russian real estate markets have become a buyer’s market since the last 10 years and therefore, many global investors are looking at this country with a lot of aspirations and opportunities.

Things to remember while doing business in Russia

A successful strategy for doing business in Russia does not just focus on satisfying an emerging trend in the market but includes the knacks of dealing with people and “getting things done”. The stability of the Russian Government, increased accessibility to the remote land and a stronger currency are factors that attract investors to Russia.

If you choose to venture into the business world of Russia, here are a few things you must remember before you take the first step.

Building a Network

Doing business in Russia is primarily about establishing good connections up the chain. The right contacts eliminate potential barriers and can guide you through to the right people. A formal relationship combined with an informal rapport among key decision makers in the business environment is essential for your success.

Legal firms can help

Russian legal services are a good place to start. They can help you in with dealing the new business setting and make you feel more accustomed to the practices in the business world. They assist foreign investors in Russian company registration to also obtaining all required licenses.

Dealing with corruption

Russian authorities take up corruption charges from foreign companies seriously. Foreign companies must be prompt about reporting any corruption issues in and outside their organization. This can be done by building a strong internal network that can co-ordinate with local authorities with ease. An adept management of human resources is essential to achieve the same.

The proliferation of the “third party”

The dynamic legal scenario pertaining to doing business has paved way for the interference of middlemen into several business transactions. This leads to higher costs and less effectiveness of doing business. A reliable Russian legal service is often the best choice to deal with changes in business laws.

The Russian business etiquette

Punctuality and good presentation are appreciated in the business culture of Russia. While most Russians are well versed in English, important documents, business cards and communication documents are expected to be translated to the Russian language also. Be extremely patient with your business counterparts and do not use rude language under any circumstances. Prior knowledge about the country of Russia and the Russian language are added advantages.

There have always been a lot of pre-determined notions about doing business in Russia. With the advancements in technology and logistics, business investors with the right approach can easily take advantage of the growing economy of Russia.

Harness the Power of Partnerships in Russia to Exponentially Grow your Business

Partnerships are a great way to build your business, especially in a foreign land. In a country like Russia, it takes a lot of courage and hard work to make your business successful and sometimes, it can get difficult for a new entrant for setting up a business in Russia and find the right means for company registration Russia. One of the best ways to combat this challenge is to use the power of partnerships to your advantage so that you can excel in your business and have the support you need, in terms of manpower, finances and intellect as well.

Here are few tips to consider while cultivating successful business partnerships:

• Build a strong network before the need arises – You don’t know when you might need a partner in business or need assistance to grow your business in another country. At the last minute, it might get difficult to find the right partner. Therefore, you must open yourself to new people, meet new and interesting professionals so that you can always tap a new opportunity.

• Partnerships take time–It takes a lot of time and effort to cultivate and nurture the right partnerships. Sometimes, you need to be patient and wait for some time before you can set off on the right foot with your partner.

• Partnerships can happen in the most unlikely places with different people – You never know with whom you can make the right partnerships for business. Open your mind and creatively look for answers. Sometimes, a partner can also be a strong competitor. If you are looking for company registration Russia and go out to hire Russia law firm, you might meet someone looking to join in your company and it might click instantly. Keep your options open, always!

• Don’t choose a similar partner – Pick a partner that adds value to your business and brings a different set of skills to the table. If you find someone just like you in terms of expertise, you might not get a different opinion and it may hamper the growth of your business.

• Be aligned in terms of goals – If you are entering a long term partnership, ensure that you and your partner are well-aligned in terms of goals and objectives to avoid clashes in the future.

Once you find a suitable partner, you can always hire Russia law firm to help you seal the deal in legal matters. All you need to do is make the right choice!

Obtaining a Work Permit Visa in Russia in 2015

Russia is the second most popular destination for seeking work opportunities after the United States. When you are in a city like Moscow you cannot help but notice the high population of immigrants who have shifted to the country for work purposes.Moscow lawyers are quoted rendering maximum towards immigration advisory services.

In 2015, some both major amendments to the work visa system are expected to bring a paradigm shift in the immigration trends for Russia.

Listed below are the judicial alterations that you must look out for in 2015.

1) New work patent system for CIS Nationals

CIS nationals are no longer required to apply for the standard work permit. Instead a new system of work patent will be issued by the different regions in Russia and further decisions of this work patent lies in the hands of Regional Governor. Lawyers in Russia will be hired as third parties to process applications for work patents. It is recommended to adhere to the same region for all services that is if you wish to apply for a work patent in Moscow, seek the services of Moscow Lawyer.

2) Knowledge of Russian language and judicial basics is mandatory

With an exception of HQS visas all migrants to Russia applying for a work visa must pass a Russian Language exam. The exam is to verify the working competency of the individual with the Russian language. In addition to this, individuals must also submit relevant documents that prove their knowledge about the Russian history and the judicial laws pertaining to their region of work.

3) Changes in notification requirements for work visas

The Russian government has altered the reporting system followed by employers thus far. . Employers are not required to report to the Tax Authority regarding the hiring of a foreign employee nor do they have to report to the Federal Migration Service regarding unpaid leave records. However employers must update the Federal Migration Service within three business days about all new and terminated labour agreements.

4) Foreign firms can now issue Highly Qualified Specialist (HQS) visas

Till 2014, only Russian companies were permitted to hire foreign professionals under the HQS program. Going forward foreign companies with branch offices in Russia also have the right to apply for work permit in Russia for highly skilled professionals from any background through the HQS program.

With such major changes in the immigration system of Russia, people wanting to apply for work permits are recommended to take professional advice from lawyers in Russia before they proceed.

Reasons to Get your Legal Documents Translated Through a Professional Company

As businesses are spreading out globally, many companies feel the need to translate their offer documents,company register Russia documents or other legal documents in a way that can be comprehended on a global level. Business related document translation is something that cannot be done within the organisation since there are various restrictions of time and language barriers. Therefore, it is better to hire a professional company that has the expertise to undertake such tasks.

Read on to get a glimpse why you must hire a professional company:

• Qualified language experts – When you hire a professional company to translate your legal documents, you can avail professionals who are experts in the language you desire. This will enable them to choose the right phrases and words that are intended for the particular use. When you are making company register Russia documentation for any other global office, you can get someone to translate the legal terms in the perfect manner as well.

• Translators are aware of the legal system of different nations–When you hire a professional company with lawyers Russia, they will have the knowledge about the different laws in different countries and will be able to help you write in a systematic manner as per the audience of the legal documents.

• Accuracy is important – When you are translating legal documents, accuracy plays a vital role since your business prestige and finances are at stake. The results of mistranslated text can be extremely harmful to the organisation. Therefore, it is important to choose a professional company that believes in accurately translating all the legal information.

• High standards of delivery – When you select a professional company to translate legal documents, you can be assured of superior standards of delivery in the work so that your organisation’s reputation is maintained. All esteemed translation services have effective quality control measures and quality assurance practices that keep you assured of 100% delivery.

You can get some of the best translation services for legal documents in Russia and get valuable assistance from lawyers Russia to help your business grow on a global level. You must remember that the legal systems of each country can be extremely different and therefore, you need to hire specialists who have the experience and expertise to handle these kind of translation work. Legal matters need a specific kind of attention and hence, it is highly recommended to hire a professional company for all your legal documents.