INTRODUCTION
Especially in the last few years, Russian authorities have made several changes in the legislation simplifying the issues of registration and taxation of new businesses. None the less, small and medium-sized businesses now have better chances for getting a loan from the banks.
However, the tricky thing is to keep the business going. Rather complicated accounting and reporting system, involving several bodies, frequent inspections done by various controlling organisations, and unclearness in the responsibilities between the federal and regional authorities make the process of “doing business in Russia” more complicated compared to other emerging markets.
Corruption is one of the biggest problems both Russian and international companies have to deal with. In the poll carried out by Advisory Council for Foreign Investments in Russia, more than 150 foreign companies named bureaucracy as the main hindrance for their activities in Russia. Corruption stood on the second place.
Taken all this in consideration, there can be only one advice. Professional assistance rendered by lawyers, auditors and advisers can save you a lot of efforts and money. If guided in the right direction, you will enjoy doing business in Russia. But it is important to do homework.
Doing business in Russia has long endured negative stigma including accounts of corruption and unlawful criminal gangs. Those wise enough to look through theses often embellished stories, nevertheless, have profited from Russia's vibrant economy which has seen a decade of growth averaging over 6% per annum.
3. ORGANIZATIONAL – LEGAL STATUS FINANCIAL INSTITUTIONS
Also, major changes have recently been brought to the legislative framework for investments in the so called “strategic sectors”. In May 2008, Russia adopted a new law on foreign investments in strategic sectors, showing that major, revolutionary steps are being taken to create clear rules of the game for investors. Further improvement is also expected, and shall be connected with progress in the field of structural reforms; stronger competitiveness, and overcoming imbalances in the Russian socio-economic system.
A joint stock company (JSC) is a type of business entity: it is a type of corporation or partnership involving two or more legal persons. Certificates of ownership (or stocks) are issued by the company in return for each financial contribution, and the shareholders are free to transfer their ownership interest at any time by selling their stockholding to others.
In most countries, a joint stock company offers the protection of limited liability; a shareholder is not liable for any of the company's debt beyond the face value of their shareholding.
There are two kinds of joint stock company; the private company kind and the public company. The shares of the former are usually only held by the directors and Company Secretary. The shares of the latter are bought and sold on the open market.
In Russia (the former Soviet Union) the term JSC is used for ex-State Enterprises that are now under a more free business regime[citation needed]. Their business conditions are somewhat different from Joint Stock Companies in western countries. A joint stock company (JSC) is a type of business entity: it is a type of corporation or partnership involving two or more legal persons. Certificates of ownership (or stocks) are issued by the company in return for each financial contribution, and the shareholders are free to transfer their ownership interest at any time by selling their stockholding to others.
In most countries, a joint stock company offers the protection of limited liability; a shareholder is not liable for any of the company's debt beyond the face value of their shareholding.
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