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Legal forms of foreign trade projects in Russia

Legal forms
of foreign trade projects in Russia

In practical terms, foreign trade projects in Russia can be formalized through choosing and working out or drawing up either of a sole contract or several related contracts with the opportunities to use various types of legal entities to enter into those contracts.

    Basic types of legal structures for foreign trade in Russia
  • subsidiary as a Russian company:
    • limited liability company
    • joint-stock company, closed (private) or open
    • other types of companies
  • branch of the parent company
  • representative office of the parent company
  • activities without forming a permanent establishement
  • contractual relationship with Russian counterpart:
    Basic types of business contracts in Russia
  • contract of sale for delivery of a sole lot of products
  • contract of delivery of equipment along with necessary services
  • master contract for delivery of several lots of products
  • mixed contract of delivery and distribution
    Sometimes it is advisable to make such a contract in order to simplify customs clearance of goods to be imported into Russia
  • distribution contract
  • commission agency contract
  • consignment contract
    This is a type of the commission agency contract when the consignor delivers a lot of products to the consignee's warehouse who sells it out by parts entering into contracts of sale on his own name and on the account of the consignor
  • intermediary contract
  • contract for commercial representation
  • agency contract
  • contract of delegation
  • franchising contract
    The franchising means that a company issues to some person a licence (franchise) to manufacture or sell goods or services under the company's brand.
  • agreement for transfer of know-how
  • licence agreements
    • agreement for non-exclusive (simple) licence
    • agreement for exclusive licence
    • agreement for full licence
  • contracts for provision of services:
    • information services
    • consulting services
    • marketing services
    • engineering services
    • other services
  • contracts for work:
    • contract for performance of research and development
    • contract for performance of design work
    • contract for performance of construction (reconstruction) work
    • contract for performance of repair work
    • contracts for turnkey construction
      contract for construction and other work along with contract for delivery of equipment
    • other types of work
  • countertrade contracts:
    • barter contract
    • compensation agreements
      It is a method of carrying out foreign trade when the exporter delivers manufacturing equipment on the basis of trade credit terms and the importer, after its installation and putting into operation, compensates its cost and cost of the credit by deliveries of products manufactured at that equipment.
    • contract for production and sale cooperation
    • contract for buy-back of old equipment
    • contracts for counterpurchases
    • contract for treatment of raw materials provided by the client
  • leasing contracts, a lot of types
  • forfaiting agreement
    The forfaiting is a medium-term financing of foreign trade through purchase from the exporter of promissory notes or bills of exchange accepted by the importer.
  • factoring agreement
    The factoring is a short-term financing of foring trade when a specialized company acquires claims against debtors either with certain discount or for compensation and collects debts itself as the principal.
  • loan agreement
  • project financing agreement
  • contract for joint activities (simple partnership pursuant to the Civil Code of Russia)
  • contract for creation of a joint venture
  • investment contract
  • additional agreements:
    • contract for brokerage services at customs
    • contract for freight forwarding
    • lease agreement (Landlord and Tenant)
    • contract for storage
    • confidentiality agreement, etc.
News and practices
for this page (33)
28.07.2009
FTS to strengthen customs control over the import of fruit and vegetable products into Russia

08.07.2009
Customs particulars of import into Russia of production equipment whose analogs are not manufactured in Russia and whose import is not subjected to VAT

01.04.2009
Traders warned about non-existent ICC instruments quoted on Internet

04.12.2007
ICC issues model turnkey contract for major projects

24.05.2007
ICC to revise its Uniform Rules for Demand Guarantees

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LEGAL SUPPORT OF PROJECTS IN RUSSIA