Joint ventures

Our enterprises have a right to set up joint ventures on the territory of this country with foreign firms. A joint venture can be created with any number of foreign and Russian enterprises. A joint venture has limited liability. It should be self-supporting and self-financing.

Joint ventures offer foreign investors direct access to the market of our country. It may be set up in any branch of the economy: agriculture, industry, trade, construction, service sector etc. A foreign participant may repatriate his share of profit abroad. The main features of interest to our participant are:

- to satisfy the requirements for the domestic market;

- to attract foreign technology and management experience;

- to improve the export base of the country and reduce irrational imports by means of import substitution.

If the parties want to form a partnership, a Protocol of Intent is normally signed. A joint venture becomes juridical after it has been registered with the Ministry of Finance. The Foundation Documents and the Feasibility Study are the most important documents for the application procedure. Foundation documents include the Agreement between the partners on the establishment of a joint venture and the charter of status of a joint venture. These documents outline the legal status of a joint venture, the funds raised, Management and Personnel and some other provision. The partners involved jointly prepare the Feasibility Study. It covers the objective of the company, the working capital, the product to be manufactured, the marketing possibilities, and the technical back up of a project.

Only after registration the company may open a bank account and conclude agreements and contracts in its own name.

Joint ventures- совместные предприятия

Enterprises - предприятия

Limited liability – ограниченная ответственность

Construction - строительство

Participant - участник

Foundation documents – учредительные документы

To conclude agreements – заключать соглашения