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Currently, it becomes more difficult to fulfill obligations undertaken earlier. Art. 416 of the Civil Code of the Russian Federation states that an obligation is terminated by the impossibility of fulfillment if it is caused by a circumstance arisen after the occurrence of the obligation, for which neither of the…

During the declared COVID-19 pandemic, one of the most important tasks for a business executive is a transfer of employees to remote work. In this regard, the issue of finding a best way to organize this transfer without violating the provisions of the labor law arises. In most cases, an…

A day earlier Russian Prime Minister informed heads of state that in order to ensure security and curb the spread of coronavirus, it was decided from 00:00 on March 18 to temporarily restrict entry to the territory of the Russian Federation for foreign citizens and stateless persons. Currently, restriction will…

Here we consider a customer due diligence procedure. What is it, what is that for and who can order such a service. So let’s start with the definition.

A complex verification procedure which is usually used in world practice, in order to find out the possible risks a business may face in future before entering into an agreement with a client, partner or contractor. The more detailed data about the transaction is provided, the more reliable decision can be made. The research includes the following.

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…