A foreign investor can enter the Russian market and secure a foothold there by pursuing a variety of business options: setting up a company, creating a holding structure involving Russian legal entities and individuals, or opening a representative office or branch of a foreign company.
Companies in Russia are set up on the basis of ownership held by one or more legal entities or individuals. Business conducted by companies set up in the Russian Federation is governed by Russian law.
The difference between Russian law and the laws of the investor’s country or insufficient awareness of the investor’s part usually leads to internal corporate conflicts, conflicts sparked by inflated expectations, or conflicts between the Russian regulations and action taken by investors.
The most efficient means for resolving a corporate conflict is legal regulation of the relationship between a company’s shareholders as early as on the “design” stage, while the provisions of the company’s constitutional documents are developed.
Over the course of the company’s day-to-day operations, in particular while the company’s business is followed up, the leading role in efficient business management is played by pre-developed instructions and other regulations governing the operations of the company’s board of directors and management.
Significant importance in this matter is attributed to formalization of contractual relations with the company’s management and regulation of its responsibility.
Our experience enables us to assist you in your selection of the most suitable form of conducting investments and business in the Russian Federation. We will provide support in preparing the constitutional documents and in determining the structure of the governing bodies, considering the selected type of the company.
We are also happy to offer you support in corporate housekeeping.
We will provide advice in respect of the procedure for a company’s liquidation, closing a representative office or branch, as well as in bankruptcy issues (both from the creditor’s and debtor’s point of view).
Our advice on limiting managers’ power and the inclusion of by-laws in a company in compliance with civil-law regulations is based on real investors’ experience. This experience will allow you to avoid potential mistakes, minimize risks, and discover solutions that will fully satisfy your interests with respect to business development.