Doing Business in Russia
The advantages of setting up a business in Russia consists in the fact that the laws of the country are extremely non-judgemental with regard to company management, there are no strict regulations governing the profit or annual turnover of the company; neither the degree of local population employment in the enterprise is taken into account. Plus, there is no need to buy real estate in the country; there is a possibility to keep the staff which worked in the company under the previous owner; the company has already gained some experience in its field, reputation, clients; through the enterprise name and connections, you can count on funding and soft loans; significant savings of time and money.
At first glance it may seem that opening of own business in Russia will inevitably involve difficulties of a certain kind, such as: lack of knowledge of the language, of the laws, of the economic, fiscal and even political system. As a matter of fact, the variety of kinds of activities is so huge that virtually everyone can work in Russia for himself. This applies to foreigners as well. A western citizen, that is of a country which is not counted in Russia among the unwanted ones, according to legislation, has the right to buy a company in Russia or to open a new one and own it as an investor.
To buy or create a business in Russia is not a problem. The main thing here is not to regret the purchase after. The fact is that, in the wake of the crisis, many domestic sector enterprises remained without orders. Thus, only those companies will survive and live well who work using up-to-date foreign technologies from Europe or Japan or have among customers public or semi-public companies. It is natural, that service and food businesses are feeling well (shops, hotels – everything related to the tourism and recreation). Having set therefore, in front of himself the task of creating or buying a business, a western businessman needs a good understanding of his own specialization. Whether your business is successful or not, will primarily depend on yourself – on how rationally you will approach the question of opening a business in Russia.
Western technologies have always been in demand in Russia during the last 200 years. And the companies created by foreigners yet under czar are still working, although under different signboards.
Below is a tentative diagram of our work on the project for business investment in a foreign state, which we use when working with our clients:
● You send us in writing your order details, preferably with visual add-ons and technical specifications for mobility and search promptness. We did register it, study it, and ask additional questions, if any.
● Upon reaching the mutual understanding, we confirm our commitment to execute the order.
● We let you know the cost of our work on the order execution and sign a small contract for these services with you, we jointly finalize the scope of works, including the search of the object for investment or for business setup and the terms and cost of our work, related expenses, etc.
● Upon receipt of a small down payment confirming the seriousness of your intentions, we finally coordinate with you the next steps after providing you with multiple business opportunities: site survey by your “trustee”, survey date, length of the stay, location (region), meeting, work order. Our goal is to find in advance, before his departure, the right investment project through our connections in public institutions, personal contacts in the business community, etc.
● When the site survey and object selection are done, we enter into a “preliminary contract” for your project support.
● Upon conclusion of the preliminary contract with us, which will expressly state your will to carry out a business investment or implement a particular project, our commission is paid. In this case, to follow is an obligatory signing of the main (final) contract for the sale of the real estate with the seller.
● The possibility to provide temporary staff (trusted director, accountant) and payment for additional services are discussed in the course of the work.
As a rule, we strive to find an object for doing business or for investment in Russia which does not go beyond the parameters specified by you as our customer in the primary requirements specification.
With regard to cooperation with Russian partners, we undertake to carry out an audit of the company, to check licenses, the balance, arrears, fiscal records, availability of facilities and resources, contracts with suppliers and sellers of finished goods, lease relations. Then we prepare contracts with Russian counterparties, assuring a complete legal and accounting support and staying in constant consultation with you, as well as provide advice to you throughout the whole period of our collaboration.
We are interested in providing quality services, which will make you happy, and in turn we expect to obtain a fair compensation for our work. At the same time, we expect with good reason that in the future we will provide you with a service of a much greater scope in the sphere of execution of transactions and other projects, where our fee would be much higher. And this is where the common interest lies. We look forward to a long relationship: legal support, taxes, audit, etc. Creation of a truly profitable enterprise is necessary to both you and us.
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