Online contract-signing with foreign partners

Nov, 12 2019

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 a way of doing-business in Russia.

MCCI proposed a new procedure for foreign companies engaging to a digital signature use in the jurisdiction of the Russian Federation. An interested foreign company should open a branch in Russia, which, in turn, receives digital signature. Thus, this division of a foreign firm will obtain the right to conclude contracts in Russia in the interests of a parent company.

Opening of a branch office in Russia for subsequent use of digital signature will allow a foreign company to sign contracts with Russian companies on any type of activity. At the same time intergovernmental agreements are not required for applying this mechanism: a mutual recognition of digital signatures in a territory of a foreign county is enough.

According to MCCI representatives, this type of activity is more convenient and easier than the apostille procedure, which requires the conclusion of international or intergovernmental agreements.

This MCCI initiative and its further implementation will be based on successful experience of the world system of Commerce and industry chambers, which unites more than 45 million companies. Using this approach, international chambers of industry take control of such business-operations for improving the further efficiency of this system. The fact that most foreign chambers of Commerce and industry have its’ offices in Russia simplifies the opportunity of the project implementing.

The process of contracts signing and notarization will be able to reach a new level, primarily in terms of the process terms in case of successful system integration. Digitalization of transactions with Russian counterparties in turn can make the Russian investment environment more attractive for foreign companies.