Russian Legislation Related to Foreign Investments

Updated on Monday 18th April 2016

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Russian-Legislation-Related-to-Foreign-Investments.jpgForeign investors interested in the business environment available in Russia should be familiar with the legislation available for foreign investments, which is designed to attract foreign direct investment (FDI) projects into the country. The legislation in this sense provides a stable framework for businessmen as it refers to the protection of ownership and investment agreements. Entrepreneurs who want to know more about the legislation applicable in this field can receive assistance from our team of Russian company formation agents

 

Legal framework for foreign investments in Russia 

 
Entrepreneurs who want to open a company in Russia should know that the investment legislation offers a set of provisions favorable to foreign businessmen
 
The main rule of law for investment projects in Russia is the Federal Law No. 160-FZ, referred to the Law on Foreign Investments. One of the main provisions of the legislation refers to the fact that foreign investors have approximately the same legal regime and advantages as prescribed for the local investors. 
 
Foreign investors are guaranteed to several rights through this law, as follows: 
 
guarantee of legal protection of the business activities carried out in Russia;
foreign investors can access a multitude of business sectors, except for several industries which are prohibited by law;
the rights and obligations of a foreign investor can be transferred to a third party;
under the Stability Law, foreign investors and their companies are protected from unfavorable changes which make happen in the business sector/local economy;
investors can also own properties and other types of real estate items. 
 
Our Russian company formation agents can assist you with more details on the provisions of this Federal Law
 

Business sectors unavailable to foreign investors in Russia 

 
Although foreign investments are allowed in a wide area of business fields, several industries can’t be accessed by foreign investors or, if they do, there are special limitations imposed, as the sectors are considered to have a strategic importance for the Russian state.
 
Foreign investors are forbidden to own voting rights that will give them the right to control Russian companies involved in strategic fields, such as: 
 
mining activities related to the extraction of mineral resources;
aerospace industry;
military activities.
 
If you need further information on the legislation available for foreign investments in Russia, please contact our Russian company formation agents for assistance. 
 
 
 

Comments

  • Andrei 2016-04-01

    Hello, I'd like to know how to open a company in Russia in the financial sector. Thank you.

    Hello, you can send us your request via e-mail and one of our specialists will answer you as soon as possible. 

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