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sevan
07-04-2004, 13:35
Anyone here have experience closing a business in Russia, either by the official method or by re-registering the firm with new founders and a new director?

Any recommendations?

batman
07-04-2004, 16:07
I have been officially closing rep offices and firms (OOO and ZAO) already.

I always recommend the official way. You will never know what will happen in future. And "old stories" might be a problem than. To shut down or re-register is normally not a too big problem, as long as all founders (and directors) agree. But still ....

Penguin Snacks
11-04-2004, 02:32
It is not quick process to close down a Russian company (OOO). It depends on how it was set up in the first place but I was quoted $1,500 to shut down our company.

I use a cheap law firm so this is not a high quote. But you are better off talking to a lawyer to get a better evaluation.

ljepson
18-04-2004, 19:31
I am a newbie who is looking into opening a business here and just came across your post. Can someone give me an idea of what is involved in closing a business.
$1500? How many forms must be filed out and lines waited in? Is it really that complicated? Why so expensive?

(In the US does it also cost money to close a business? -- by "close down", I am referring to just the paperwork. )
Can`t a company just file its last tax report and notify the government that is closing?

LK

Penguin Snacks
24-04-2004, 07:41
Compared to the US, UK etc.. running a business here envolves a lot of hassles. Sadly when you are registering a company these aren't always highlighted.

One of the main hassles are the numerous reports (tax inspector, social funds etc..) that need to be filed by your accountant every month and quarter - even if you are not doing any business. This can get quite time consuming as you will need to sign and stamp unlimited documents.

I am not an expert on closing down a business and was just passing on what my lawyer quoted me. They are a small Russian law firm with reasonable prices. They charged me $500 to register my business.

I also understand it can cost more than this depending on how the company was registered.

Sorry to be all doom and gloom but it is good to know what to expect so you can prepare yourself mentally.

Limitchik
26-04-2004, 19:28
Originally posted by ljepson
I am a newbie who is looking into opening a business here and just came across your post. Can someone give me an idea of what is involved in closing a business.
$1500? How many forms must be filed out and lines waited in? Is it really that complicated? Why so expensive?

(In the US does it also cost money to close a business? -- by "close down", I am referring to just the paperwork. )
Can`t a company just file its last tax report and notify the government that is closing?

LK

One of the reasons it can be expensive is because the myriad of forms (parent company charter, meeting minutes, local tax entity proof, powers of attorneys, etc) you submit to all of the necessary government agencies all have to be translated, notarized and apostilled. Depeding on how long those documents are, you can be racking up a good $500 bucks just on the translation fees, not to mention that they are all submitted in quintuple form. More than one shareholder ? Hello, additional headaches.

Tack on the registration and lawyers' fees, and 1500 is about right. I've heard of less, and I've heard of substantially more from Western firms (who sometimes end up outsourcing the work anyway), but I'd say 1500 is rather standard.

It is a lengthy process if only in preparing the documents, but also in submitting them to the Tax Ministry, Chamber of Commerce, Social Pension Fund, Insurance Fund, etc, etc.