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Due Diligence is a special process that is necessary for a comprehensive assessment by specialists of the investment object. First of all, this process is conducted to avoid potential investment risks. Moreover, such a service includes a comprehensive audit of the financial state of the company, an analysis of its operations, as well as legal assistance in case of sale or purchase of assets.
A particular case of terminating company’s activity is to declare insolvency – situation when the company is unable to pay its credit debts, dismissal compensations and other compulsory payments. Grounds for liquidation of a legal entity due to the bankruptcy and its procedure are stated in the law on “Insolvency (bankruptcy)”. This is the essential law regulating situation when a company is not able to fulfill its obligations.
Real estate due diligence is a procedure which provides a comprehensive property check and is carried out before it’s buying or renting. Under this procedure legal, financial, tax, construction and technical examinations can be carried out, potential risks are assessed and identified when concluding a specific transaction with a real estate object.
Tax planning is active and targeted legal action of a company that is aimed at obtaining tax benefits (reduction of taxes, fees, duties and other obligatory payments). Tax benefit is a reduction in amount of tax liability, which is achieved by reducing the tax base, obtaining a tax deduction, benefits, applying a lower tax rate, as well as obtaining the right to a refund (offset) or tax refund from the budget.
The entrepreneurial activity of any company is connected with the close control of the tax authorities. Therefore, when making transactions, it is necessary to analyze the documents for the presence of tax risks carefully. Before entering into any contract, it is advised to take into account the following mandatory conditions.
Mergers and acquisitions of companies (M&A transactions) can be one of the reasons for significant growth for the business and its prospects in the future. However, along with good expectations, it is necessary to take into account the risks of merging a company with another enterprise. In this article, we will take a detailed look at the reasons why companies turn to mergers and acquisitions. It is necessary to know the positive and negative aspects associated with this type of corporate transactions.
It is important to understand that the employer and the employee conclude a fundamental legal document regulating professional relations. It is in the contract that the employer’s obligation to provide the performer with the scope of professional functions according to the specialty, the creation of working conditions that meet the requirements of the law, is officially fixed.
Permanent residence permit is unlimited document which entitles foreign citizen to live and work in Russia. An adult or a child who has obtained PRP does not become Russian citizen, but he/she can study, work, do business, move from region to region without any restrictions. Moreover, obtaining PRP is a mandatory requirement to get Russian citizenship, thus PRP is usually obtained by those foreign citizens who want to link their future with Russia.
Arbitration courts consider cases that relate to entrepreneurial and economic activities. Accordingly, the parties to the arbitration process in most cases are commercial companies, entrepreneurs, business leaders and responsible specialists.
The general director is a business manager who is responsible for the material, economic and production activities of any enterprise. The director, like any person in the company, is endowed with certain official functions.
Russian law provides for several types of companies’ activity termination. A legal entity may be wound up by decision of its participants or the court. In the first case, company ceases to exist in connection with the expiration of the period for which the enterprise was created, or in connection with the achievement of the purpose of its operation. For example, if a company was created to implement a construction project, after putting the facility into operation, the company may officially cease to exist.
The representation in court is much wider than simply executing assignments on behalf of the plaintiff or defendant. First of all that is a protection of the interests and rights of the client in front of the opponent. The result of the case directly depends on the quality of the presented arguments. The powers of a representative in civil and administrative cases are mostly similar, but each type of legal procedure has its own specifics.
First, we should define the term itself. An audit is a procedure when a specialist scrutinizes company documents and tries to identify any hidden problems, debts, and other potential problems. Who needs that? When you buy a ready-made company, you have to understand all risks and correctly assess the situation; otherwise, you run the risk of facing huge problems. For evaluating the transaction, you need to provide a tax audit.
