LEGAL SUPPORT FOR FOREIGN INVESTORS

1. Outline ooff RRuussssiiaann lleeggaall ssyysstteemm
Veronika Kazakevich
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2. SOURCES OF LAW
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3. TYPES OF BUSINESS PRESENCE
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4. OPENING A COMPANY
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5. PRINCIPAL TAXES
Profit tax – 20%
VAT – 18%
Property tax – 2.2%
Double tax treaties with __- countries
Income tax (for natural persons) – 13%
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6. ANTITRUST REGULATION
Applies to foreign companies when:
•Making M&A if a supply volume of a foreign company
to Russia exceeds USD 33.3 mln. annually
•Making M&A if a foreign company has a subsidiary
Russian company which meets particular criteria
•Entering distributorship agreements with Russian
companies
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7. CURRENCY CONTROL ISSUES
Payments:
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Between residents
•in rubles only
•not subject to currency
control
Between non-residents
•in rubles and foreign currency
•subject to currency control

8. JUDICIAL SYSTEM OF RUSSIA
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9. LITIGATION PROCEDURE IN RUSSIA
Filing a suit
Preliminary
hearings
Litigation timeline
Trial Judgment
~ 4 - 10 months
1-1,5 months 1 months 1-6 months
Enforcement
order
2-3 months
Appeal
1,5 months
NB:
• In most cases only written documents can be considered by arbitration court
• Witness testimony accepted very rare
• Russian Arbitration courts are reluctant to accept an electronic correspondence as
an evidence, especially when free mail domains are used
• To make an e-mail an evidence a special procedure should be made: a notary
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survey of mailbox
• The more written and signed documents you have the more chances for you to
win the case
• All the documents of foreign state bodies should be legalized or have an apostil

10. ENFORCEMENT PROCEEDINGS
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Property which is officially
registered and can be
found by bailiff:
• Funds in bank
• Real estate objects (land
plots, buildings)
• Transport
• Intellectual property
• Shares and stocks in
companies
If bailiff hasn’t found assets he returns an enforcement order to the claimant

11. Thank you for your attention!
Veronika Kazakevich
Director
Corporate and Commercial Department
kazakevich.v@cliff.ru
www.cliff.ru