buying shares in a russian company
TRANSCRIPT
Buying Shares in a Russian Company
A presentation brought to you by LawyersRussia.com
1
How to Start a Business in Russia
Foreign investors interested in owning a business in Russia can do so without registering a new company.
Among the options they have are: buying a shelf company to which they can bring the changes they consider, or buying shares in a Russian company.
The second choice is probably the less time consuming.
2
How to Buy Shares in a Russian Company
The legislation allows a Russian company to sell its shares.
The laws related to selling/buying shares in a company in Russia are the Civil Code and the specific laws applicable to private and public companies.
Our Russian lawyers can offer detailed information about the laws above.
3
Foreign Investors Buying Shares in Russian Companies
The law allows companies in Russia to trade their shares in or outside the country provided that they are joint stock companies or change their status.
However, there are also certain restrictions applicable to foreign investors purchasing shares in a company in Russia.
4
Restrictions on Buying Company Shares in Russia
The following restrictions apply to foreign investors seeking to buy shares in a Russian company:
5
the purchase of shares in an insurance company can be completed only with the relevant authority’s approval;
buying shares in a Russian media company is limited at 20%.
Buying Shares in Russian Private Companies
The purchase of shares in a private company depends on the seller and the buyer who must agree upon the terms of the transaction and then the signing of the sale-purchase agreement.
The shareholders are required to announce the sale of shares and prepare all necessary documents related to the sale.
6
Buying Shares in Russian Public Companies
Buying shares in a Russian public company depends on several other factors.
First of all, company due diligence is recommended in order for the buyer to make sure they make the right choice.
Secondly, pre-bids are regular when it comes to public companies in Russia.
Once these steps have been completed, the parties can negotiate and later on complete the transaction.
7
The Sale-Purchase Agreement in Russia
Both the sale and buying of shares in Russian companies are based on signing a sale-purchase agreement, which defines the terms of the transaction.
Our Russian law firm can assist foreign investors with the drafting of the sale-purchase contract.
8
Assistance in Buying Shares in a Russian Company
For complete information about the obligations of the seller and the buyer in any type of transaction with shares, you can rely on our law firm in Russia.
You can also contact us for assistance in opening a new company in Russia.
9
Thank you for your attention!
For more information, please contact us at:
(+44) 203-287 0408 (for international clients)
www.lawyersrussia.com
10