Blog

The term “due diligence” includes the assessment of the company in various areas, including verification of the reliability of the firm, its financial documents and the conduct of inspections in the field of labour law. It is often used before entering into contracts, company acquisition or making investments.

Responsibility for dishonest withdrawal from negotiations exists in most countries of continental Europe, but in Russia such responsibility appeared with entry into force of Art. 434.1 of the Civil Code. Nevertheless, at the moment, law practice on recovering losses related to unfair negotiation is quite rare. Party that interrupts negotiations…

According to Review of Judicial Practice on some issues of legislation application on business entities, approved by Presidium of Supreme Court of the Russian Federation, from December 25, 2019 all resolutions of members of business entities (limited liability companies and joint-stock companies) are subject to notarization. These changes apply to…

A new type of financing is becoming popular is Russia – investing in third party’s lawsuit. Over the last 2,5 years private investors have covered legal costs with a total lawsuits amount of more than 9,3 billion rubles. Abroad, this type of financing is called litigation finance and has become…

Fundamentals of legislation of the Russian Federation on notaries have been amended, which will enter into force in 2020. The major changes include: • Notary will be able to accept documents for storage not only in paper form, but also in electronic form. Materials will be stored in the Unified…

Crowdfunding (from the English crowd funding – “collective financing”) is a way to attract funds from any interested parties through information technology. Crowdfunding differs from other types of investing by using a special online investment platform. Everyone has the opportunity to choose an interesting project and invest in it –…

One of the most important hurdles for expansion of business activity in Russia is the criminal liability for currency and tax violations. To improve investment environment in Russia, Russian agencies propose measures to decrease tax burden for the business. In particular, the liberalization of the Criminal Code of the Russian…

For the first time, a contribution in form of cryptocurrency, more specifically Bitcoin, was made to authorized capital of a Russian company. The Russian company applied twice to the Federal Tax Service (hereinafter referred to as the FTS) in order to register changes in authorized capital. The reason for the…

Working on website redesign, VALEN has managed to make it look more modern as well as to maintain its corporate style. Renewed website allows its visitors to keep track of news in business, finance and law. This information is available in «News» section. The «Practices» section represents a full range…

On November 1, 2019, legislative amendments came into force on the simplification of procedure for granting temporary residence permit (TRP) and a permanent residence permit (PRP) in Russian Federation to certain categories of foreign citizens. Permanent residence permit has become unlimited Previously, permanent residence permit was issued to a foreign…

Today, the use of electronic digital signature is quite a significant issue for foreign partners in Russian business. However, there is an opportunity to sign contracts-online using digital signature via electronic trading platform «Business-market», developed by MCCI. At the same time now, there are no any legislative restrictions for such…

The Ministry of Finance of the Russian Federation is considering the possibility of dividing cryptocurrencies for its further legal regulation. Thus, Cryptocurrency should to be divided into the following types: technical tokens for maintaining the system functioning; virtual assets-bitcoins; Digital financial assets or ICO (Initial coin offering – a form…

Ministry of Finance proposes following amendments to Russian tax legislation: Criteria for recognizing citizens as tax residents will change. Now in Russia it is necessary to spend less than 183 days a year in order not to be considered as Russian tax resident and not to pay taxes. According to…

Minister of Finance suggested that fines should not be applied to small and medium-sized companies if they committed an offense for the first time. If inspection body identifies an offense that was voluntarily eliminated by the company, in this case it should receive a warning only. Relevant practice will have…

On July 26, 2019, Russian Central Bank has published recommendations that can help companies to avoid blocking of their assets. Account can be blocked, if bank will suspect company in money laundering. The recommendations of the Central Bank are: Always communicate tax authorities and your bank about changes in the…

The Russian State Duma has adopted amendments to Law on «legal status of foreign citizens in Russia» and a number of other legal acts of the Russian Federation in simplifying the procedure of granting a residence permit and a temporary residence permit to certain categories of foreign citizens. The bill…