Amongst the legal entities that can be set up in Russia, investors may also register a general partnership. Partnerships in Russia may be incorporated under three types of business forms, each one of them offering different advantages and obligations to its investors. Businessmen who want to open a company in Russia as a general partnership should know that the local legislation allows both natural persons and legal entities to become associates under this structure. Our team of company formation representatives in Russia can offer more details on the regulations referring to the general partnership and can also provide assistance during the incorporation procedures.
Types of partnerships in Russia
Those who want to start the procedure of company formation in Russia as a partnership can choose from the following three legal entities:
• general partnership;
• limited partnership;
• limited liability partnership.
Regulations for general partnerships in Russia
When opening a general partnership in Russia, investors should first study the regulations of the Russian Civil Code. In order to start the company registration in Russia for this legal entity, the investors will need to sign a foundation agreement, through which the businessmen will become partners.
In terms of the company’s liability, the partners will become separately and jointly liable for any debts incurred during their business activities. Such provisions are to be mentioned in the foundation agreement, in which the associates will state the share of assets belonging to each partner and our team of company formation consultants in Russia can offer more details on the legal aspects related to the founding documents.
It is necessary to mention that the partners will become liable with their personal properties only in the situation in which the partnership will not have sufficient assets to overcome the respective financial issue.
Foreign investors should know that in a general partnership all associates have equal rights in terms of the decision making process and, moreover, any decision taken by the company will require the consent of all the partners.
When drawing the founding agreement, the investors will need to notarize the respective document and then, register the legal entity with the Trade Register in Russia; later on, the partnership will also be registered for taxation purposes, as required by the applicable legislation.
Please contact our team of company formation agents in Russia for professional assistance on the incorporation of a general partnership.