Over the past decade, Russia has implemented several measures to enhance the investment appeal of the country. From simplification of administrative procedures to tax incentive techniques, the country has grown into a strong magnet for those looking for lucrative business opportunities abroad.
Doing business in Russia may sound complicated but with these easy tips you can be certain to reap the best benefits from your endeavour.
Choose the right legal structure
Foreign entities conducting business in Russia may opt for direct sales, distributorship, subsidiary alliance, economic partnerships or branch offices to establish their presence. Every mode of business arrangement varies from one another and the related provisions of laws are also different. Companies or individuals investing in Russian economy must take professional help to obtain a clear understanding of these trade arrangements and choose wisely.
Choose an expert Russian partner
No matter how good is your native business acumen, partnering with a Russian counterpart imparts the right amount of knowledge required to operate successfully in the country. Choosing a partner with a proven track, industry experience and the structural spectrum to support the venture, increases your chances of success remarkably than taking up the project as a separate foreign entity.
Take reliable legal help
Irrespective of the chosen legal business structure, availing Russian legal services helps investors to handle several facets of the business successfully. Choosing the right legal partner will save them from potential litigation issues, due diligence, risk assessment and taxation. Legal advisors guide new entrants, right from the Russian company registration process through up to paying income taxes.
Analyse all regulatory requirements
The business environment of Russia is bound by several regulatory approvals and they tend to change from time to time. For instance, all representative and branch offices of foreign firms in Russia must comply with the re-accreditation requirement before April 1st, 2015, failing which their operations will be terminated. Therefore every investor must be well-versed with all industry-specific regulations and safety laws of the country.
Abide by the law always
Corruption in Russia is considered a criminal act of the highest order. Any foreign investor looking for long term success in the country must abide by the law under all circumstances. Do not succumb to temporary business complications and resort to illegal shortcuts any time while you are conducting business transactions with Russians. Russian law imposes severe penalties and fines for all bad business policies. If at any point you find yourself in a fix, do not hesitate to take assistance from Russian legal services.
Russia’s incessantly evolving business landscape may be slightly intimidating for foreign investors. Doing business in Russia needs ample effort andcomplete knowledge about the country’s unique business settings. This can help businesses to emerge successfully in this rapidly growing economy and minimize risks in all transactions.
By elianemey from Pixabay