Outline of Russian legal systemOutline of Russian legal system

Veronika Kazakevich

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SOURCES OF LAW

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TYPES OF BUSINESS PRESENCE

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OPENING A COMPANY

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PRINCIPAL TAXES

Profit tax – 20%VAT – 18%Property tax – 2.2%Double tax treaties with __- countriesIncome tax (for natural persons) – 13%

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ANTITRUST REGULATION

Applies to foreign companies when:

•Making M&A if a supply volume of a foreign company to Russia exceeds USD 33.3 mln. annually

•Making M&A if a foreign company has a subsidiary Russian company which meets particular criteria

•Entering distributorship agreements with Russian companies

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CURRENCY CONTROL ISSUES

Between residents

•in rubles only•not subject to currency control

Between non-residents

•in rubles and foreign currency•subject to currency control

Payments:

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JUDICIAL SYSTEM OF RUSSIA

Verifying compliance laws with the ConstitutionCivil cases between legal persons

Criminal cases and civil cases between natural persons

Magistrate CoursMagistrate Cours

Courts Of DistrictsCourts Of Districts

Supreme Arbitration Court

Supreme Court

ConstitutionalCourt

Regional Courts Of Common J urisdiction

(83 Courts)

Courts Of Districts(2588 Courts)

Federal County Arbitration Courts

(10 Courts)

Regional Arbitration Courts

(83 Courts)

Magistrate Courts(7443 Courts)

Arbitration Courts Of Appeal

(20 Courts)

Regional Constitutional Courts

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LITIGATION PROCEDURE IN RUSSIA

NB: • In most cases only written documents can be considered by arbitration court • Witness testimony accepted very rare• Russian Arbitration courts are reluctant to accept an electronic correspondence as

an evidence, especially when free mail domains are used• To make an e-mail an evidence a special procedure should be made: a notary

survey of mailbox• The more written and signed documents you have the more chances for you to

win the case• All the documents of foreign state bodies should be legalized or have an apostil

Filing a suitPreliminary hearings

Trial J udgment

1-1,5 months 1 months 1-6 months

Enforcement order

2-3 months

~ 4 - 10 months

Litigation timeline

Appeal

1,5 months

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ENFORCEMENT PROCEEDINGS

Enforcement order

Can be sent to bailiffCan be brought to

debtor’s bank

Bailiff searches for assets of the debtor

Bank writes off the debt of debtor’s

account

Bailiff provides a debtor with the

possibility to pay the debt voluntary

Bailiff seizures debtor’s property

Property which is officially registered and can be found by bailiff:

• Funds in bank

• Real estate objects (land plots, buildings)

• Transport

• Intellectual property

• Shares and stocks in companies

If bailiff hasn’t found assets he returns an enforcement order to the claimant

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Thank you for your attention!

Veronika KazakevichDirector Corporate and Commercial Departmentkazakevich.v@cliff.ru