Blog Starting Business In Russia
Despite the current global crisis, Chinese companies are increasing their presence in the Russian market. The emergence of business relations between the countries began almost 30 years ago and the pace of the presence of Chinese companies is only increasing. Thus, the presence of the Chinese in the Russian market becomes significant.
A limited liability company (LLC) and a joint-stock company (JSC) are two forms of business, which differ from each other in the methods and complexity of management, distribution of authorised capital and other characteristics.
A shareholders’ agreement is an agreement entered into by the participants of a joint stock company. The document defines the procedure and features of disposing of the rights that the company’s shareholders have. Refers to the type of intra-corporate civil law agreement. As a rule, shareholders agree on the procedure for creating management bodies, distribution of profits, decisions and other issues.
The year 2023 showed an increase in the number of new businesses in Russia. More companies have started to open – this applies to LLCs and JSCs. At the same time, the statistics on the number of closed enterprises is also positive – the number of closed firms decreased by 15% compared to 2022.
Registration of a JSC (now – PJSC) is the process of opening a company from scratch, including registration with the state authority. The process includes data on the founders of the organisation, the location of the JSC, the person acting without a power of attorney on behalf of the company and the registrar. The process consists of preparing and submitting properly executed documents in accordance with the requirements of the legislation of the Russian Federation.
Registration of a Public Joint Stock Company is an important step for entrepreneurs who seek to attract investment and develop their business. Opening your own company with the issue of securities is a process which is more complicated than the registration of an LLC. To understand this issue, it is often necessary to seek the services of professional lawyers. In this article we will consider in detail all the nuances of opening a PJSC and the procedure.
The process of opening a Closed Joint Stock Company (CJSC) is similar to the procedure of opening a Public Joint Stock Company. However, there are significant differences in structure between the companies themselves. It is important to recall that since 1 September 2014, it is not possible to open a CJSC in Russia. Instead, it is possible to register a non-public joint stock company – NPJSC.
Reorganisation of a closed joint stock company or NPAO is a process in which the legal form, structure or ownership of the organisation is changed. This is necessary to optimise or change the direction of the business.
A joint venture with a foreign participant is a legal entity that is formed by means of a merger of capital between a Russian entity and a representative of another country. The establishment of such a company has traditionally been seen as positive because it allows the attraction of foreign capital and foreign technology into Russia.
