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Jointventures
Russian enterprises have a right to set up joint ventures on the Russian territory with foreign firms. A joint venture can be created between any number of foreign and Russian enterprises.
A joint venture has limited liability. It should be self-supporting and self-financing.
Joint venture offer foreign investors direct access to the Russian market, it may be set up in any branch of Russian economy: agriculture, industre, trade, construction, service sector, etc. A foreign participant may repatriate his share of profit abroad.
The main features of interest to the Russian participant are:
- to satisfy the requirements for the domestic market,
- to attract foreign technology and foreign management experience,
- to improve the export base of the Russian 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 a juridical person after it has been registered with Ministry of Finance. The foundation documents and the Feasibility Study are the most important documents for the application procedure.
A joint venture is a legal person. It is protected under Russian law from any requisition or confiscation by the administrative authorities. It may sue and be sued and may also appeal to Russian and third party courts. A joint venture may be liquidated if its activities are inconsistent with the objects defined by the foundation documents. In case of dissolution, the foreign participant has a right to recover the initial contribution he made to the authorized fund.

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