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Tatarstan Roadmap for Investor.Pdf TATARSTAN: YOUR BUSINESS PARTNER Investor’s roadmap (Investor’s guide) Kazan 2010 Under the editorship of Ravil Zaripov, Minister of Industry and Trade of the Republic of Tatarstan Editorial board: Vladimir Solovyev, Gulnara Akhmadeyeva, Farid Tuktarov, Artur Fatykhov, Oleg Vlasov This publication was prepared with participation of: Rustem Akhmetgarayev, Denis Klimin, Sergei Mezentsev, Engil Ismagilov, Timur Mindubaev © Ministry of Industry and Trade of the Republic of Tatarstan, compilation, 2010 4, Ostrovsky St., Kazan 420111 Phone: +7 (843) 299 10 07 Fax: +7 (843) 292 16 45 e-mail: [email protected] http://mpt.tatar.ru © Publishing house “Foliant”, design and layout, 2010 2 Quite visible are the results of the independent foreign eco- nomic policy pursued by the republic in the past ten years. Tatarstan has tripled its foreign trade turnover, forged stable economic ties with over a hundred countries and their regions throughout the world. The products manufactured by repub- lic’s enterprises and some Tatarstan-registered trademarks are well known both in Russia and abroad. Year by year manufac- turers from Tatarstan are awarded the prizes as the best Rus- sian exporters. All this enables the republic to enjoy a high in- ternational rating and ensures its harmonious integration into the world community. Much attention is paid in the republic to further enhance- ment of its investment image. Consistently improving is the legal framework of the investment process in conformity with the international standards related to protection of investors’ rights, and the necessary infrastructure is being developed. Tatarstan today is the location where many foreign companies are operating and renowned multinational companies are represented. We are always open for cooperation and hope that this edition will be a useful guide to the business world of Tatarstan and a reliable partner in the implementation of your business projects. Rustam Minnikhanov, President of the Republic of Tatarstan Ladies and gentlemen, visitors of the Republic of Tatarstan! This Investor’s Guide entitled “Tatarstan: Your Business Part- ner” is intended for all those who seek to establish stable busi- ness contacts with our republic. This edition was prepared by the Ministry of Industry and Trade of the Republic of Tatarstan. The remarks and sugges- tions expressed by users of the previous guides are taken into account. Modern Tatarstan was one of the first Russian regions to start changing over to European standards, not only in the field of industrial production, but also in education, medicine and other sectors. Transition to European standards will largely support the optimisation of the management system and en- couragement of business initiative, which in turn will create favourable conditions for further development of the market economy in the republic. 3 1. Doing business in the Republic of Tatarstan 4 1. Doing business in the Republic of Tatarstan 1. Doing business in the Republic of Tatarstan 1. Doing business in the Republic of Tatarstan 1.1. FIRST STEPS TOWARDS STARTING YOUR BUSINESS IN THE REPUBLIC OF TATARSTAN Choosing a format of doing business is a most important step prior to the implementation of investor’s investment projects in the territory of the Russian Federation and in the Republic of Tatarstan, in particular. This choice is critical for fur- ther course of activities resulting in the differentiation of the rules of financial, tax, customs and administrative regulations. That is why one should pay special attention to this aspect in order to successfully achieve the objectives being sought. There are several formats through which a foreign company can conduct business activities in the Russian Federation: • By creating a Russian legal entity with 100 percent foreign investment or a joint venture company; • By opening a representative office or a branch; 5 1. Doing business in the Republic of Tatarstan 1. Doing business in the Republic of Tatarstan 1.1.1. OPENING A BRANCH OR A REPRESENTATIVE OFFICE the seal of the foreign legal entity, indicating the name, date of foundation, location, types of activity of the foreign legal OF A FOREIGN LEGAL ENTITY entity, objectives of opening and expected duration of a rep- Branch of a foreign legal entity is its economically autono- resentative office in Russia, and information on business rela- mous subdivision, which is not deemed to be an independent tions with Russian partners and prospects for its future devel- legal entity. It is established for the purpose of conducting the opment); activities which are carried out outside the Russian Federation 2. An extract from the Trade Register of the country of ori- by the foreign legal entity (parent organisation) and is liqui- gin of the foreign legal entity or other document confirming dated on the basis of a decision of this foreign legal entity. the fact of registration of the foreign legal entity in accordance A branch operates on the basis of statutes approved by the with the laws of the country of its location; parent organisation and performs all or part of its functions, 3. The Articles of Association (Charter) of the foreign legal including the functions of a representation, on behalf of the entity (in case the legislation of the country of registration of foreign legal entity which established it on condition that the the foreign legal entity does not provide for the Articles of As- purposes of the establishment of and the activities carried out sociation (Charter), a document issued by an authorised body by the parent organisation are of a commercial nature and the in the country of origin should be submitted to this effect); parent organisation bears direct material liability for obliga- 4. The decision of the foreign legal entity concerning the tions assumed by it in connection with the conduct of those opening of a branch/representative office in the Russian Fed- activities in the territory of the Russian Federation. eration; Representative office is an economically autonomous subdi- 5. The original and a notarised copy of the statute on the vision of a legal entity which is located elsewhere than at the branch/representative office of the foreign legal entity in the location of that entity and which represents and protects the Russian Federation; interests of the legal entity. 6. A reference letter from a bank, which provides services to A branch/representative office has the right to carry out its the foreign legal entity, confirming its solvency (this document activities in the territory of the Russian Federation from the should be valid for 6 months from the date of issue); day of its accreditation and ceases to carry out its activities 7. Reference letters from Russian business partners (at least from the day on which its accreditation is withdrawn. two letters in a free format on the letterheads of the compa- The authority which is carrying out the accreditation of nies signed by their heads and sealed with the companies’ branches of foreign legal entities is the State Registration seals); Chamber under the Ministry of Justice of the Russian Federa- 8. A notarised copy of the General Power of Attorney which tion. The accreditation of a representative office is granted for empowers the head of the branch/representative office of the the term of 1, 2, or 3 years, the accreditation of a branch is foreign legal entity with the required authorities in the Russian granted for the term of 1, 2, 3, or 5 years; if necessary, the ac- Federation; creditation may be extended. 9. A document confirming the address of the representative The time period for granting the accreditation is 21 work- office of the foreign legal entity in the Russian Federation (a ing days. guarantee letter or a lease agreement with a notarised owner- The amount of the State duty is: ship certificate enclosed); Term Amount Term Amount 10. A document confirming the consent of the adminis- of accreditation of the State of of trations of the constituent entities of the Russian Federation of a representative duty accreditation the State duty (administrations of provinces, regions, republics, national dis- office in Roubles of a branch in Roubles tricts) regarding the opening of the representative office; 1 year 30,000 1 year 75,000 11. A card with information on the branch/representative 2 years 60,000 2 years 90,000 office signed by a representative of the foreign legal entity and 3 years 75,000 3 years 105,000 sealed with the seal of the foreign legal entity, in 2 copies. 5 years 120,000 * All foreign documents are solely accepted in case they are List of documents required for opening (accreditation) of a legalised by a consulate or certified by Apostille unless the ex- branch/representative office: emption from these procedures is granted under international 1. A written application stating the request for permit to agreements of the Russian Federation and are enclosed with a open a branch/representative office of a foreign legal entity in translation into Russian which is certified by a notary or consular the Russian Federation, in a simple format (on the letterhead services. These documents are valid for one year from the date of of the foreign legal entity, signed by its head and sealed with their issue. 6 1. Doing business in the Republic of Tatarstan 1. Doing business in the Republic of Tatarstan 1.1.2. PROCEDURE FOR THE CREATION • the foundation documents of the legal entity (originals or notarially certified copies); OF RUSSIAN LEGAL ENTITIES • an extract from the register of foreign legal entities of the For the creation of a legal entity one should undertake the relevant country of origin; following steps: • a document confirming the payment of the State duty 1. To determine its organisational-legal form, location, and (RUR 4,000).
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