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24Jul

Doing Business in Russia: Russian Financial System

Who Controls the Currency? According to Russian currency control legislation, residents are generally not allowed to buy or sell goods or services in any other currency than the Ruble. Transactions between a Russian resident and a non-Russian resident may be done in any world currency, as long as Russian currency control legislation is followed. When […]
30Jun

Doing Business in Russia: Company Law

Registration and the Worst Case Scenarios: Liquidation / Insolvency / BANKRUPTCY!? Who is liable? According to Russian company law, there are two different sorts of liabilities – parent liabilities and controller liabilities. Although the company’s capital is usually the shareholder’s sole liability (including amounts to be paid), should the company go bankrupt, the shareholders may […]
12May

How to Set Up a Branch Office in Russia

A branch (”filial” in Russian) is a company’s separate subdivision located outside the company’s place of residence. A branch does not constitute a separate legal entity, but it may represent the company and carry on business on behalf of the company. As a rule, a branch has an individual balance sheet and bank account for […]
12Apr

How to Register a Limited Liability Company in Russia (LLC, OOO)

A limited liability company (in Russian OOO) is a legal entity with its share capital divided into shares; participants do not, as a rule, bear personal responsibility for the company’s liabilities but take on the risk of possible loss up to the value of their equity shares. The minimum share capital is RUB 10,000. The […]
21Mar

Doing Business in Russia: Special Protection for Certain Social Groups — Labor Law

According to the Russian labor code, certain groups of workers enjoy special protection. These are: The different cases are outlined below. Women Certain conditions of employment of women are regulated by special provisions (Chapter 41 Labor Code). Below is an overview. Women enjoy special protection against dismissal (Art 261 Labor Code). We refer to the […]
14Mar

Doing Business in Russia: Remote Work

On April 8, 2013, the president of Russia signed into law amendments to the Labor Code introducing a new Chapter No. 49.1 “On Remote Work”. This new law represents a significant change and modernization of the Russian labor laws, for it will now for the first time be legal to arrange work on a remote […]
06Mar

Doing Business in Russia: Different Forms of Employment

Employee or Civil Contractor The services or work of an individual in Russia can be legally hired either by entering into a labor contract according to the labor law or a contract under the civil law, referred to as a civil law contract. A labor contract is regulated by the Labor Code. Civil law contracts […]
01Mar

Doing Business in Russia: Trade Unions and Collective Bargaining

The Russian Labor Code foresees participation of trade unions in matters relating to the organization of and compensation for work, as well as entering into of collective agreements and collective contracts or dismissing union member employees. With the new Labor Code the role of trade unions at different levels has been clarified, and some of […]
21Feb

Doing Business in Russia: Labor Law

The Labor Code All major provisions regulating labor and employment are concentrated in the Labor Code, and took effect on February 1st, 2002. As in all aspects of Russian society, the Labor Code also puts a heavy administrative burden on the employer. Non-compliance with all these rules will put the employer at a disadvantage in […]
21Nov

Doing Business in Russia: Accounting and Audit in Russia – The New Way

Russian statutory accounting rules (RSA – also referred to as Russian Accounting Standards, RAS) are regulated by norms on a hierarchy of four levels. At the highest level there is the Accounting Law (passed by the Russian parliament, the State Duma). At the second level there are the accounting standards (“PBU” in Russian, short for Polozheniya […]