Russia is one of the most engaging markets for investors all over the world. The set up of investment company here can give a lot of opportunities to be a part of different economic sectors in Russia and obtaining high income.
In that article will be considered basic steps which are necessary in the process of opening investment company in Russia.
The peculiarities of investment companies
Recently the set up of investment companies is growing in popularity. Every novice investor understands importance of investment savings. Many beginners start through purchase of securities and drafting investment strategy. Intention and important information in that sphere will help to be a successful investor. By scheduling investment company creation as own business, the significant steps are in understanding of details and in choosing the form of activity on the market:
- Broker. The main idea of the company – operations with stocks on behalf of treaty of commission.
- Dealer. Company conducts operations with Central Bank on their own behalf and at their own expense.
- Clearing company. Work as supporter of transactions (verification, correction and data collection, drafting of documents).
- Depositories. Takes into account the rights to securities and other assets. Works with storage of certificates.
- Management company (fund). Engaged in asset trust management.
- A registered company. Provides storage, processing, maintenance of registers of owners.
- Company-organizer of the auction. Is engaged in mediation at the conclusion of transactions.
It is important to understand that the main goal of any investment company is revenue in favor of clients. This is most in demand in business circles. However, in order to ensure positive results, it is important to hire a staff of expert lawyers and economists who could build accurate economic and financial forecasts, on the basis of which the investment portfolio is formed.
The procedure for opening a company in Russia.
- Step 1. Market research and business plan development.
Before opening an investment company, it is necessary to understand the market and assess the potential for investment. Identifying the target audience, exploring sectors that offer promising investment opportunities, and identifying your own niche in the market will help attract as many customers to the company as possible. And the development of a detailed business plan, including strategy, financial forecasts and a marketing plan, minimizes all risks.
- Step 2. Identification of the legal form of the company.
One of the first steps – identification of the legal form of the company, which is more sustainable for the business. It is necessary to communicate with legal consultants or lawyers for taking recommendations about form of the company.
- Step 3. Drafting documentation for legal registration.
For the set up investment company in Russia it is important to have the legal body registration. The most common form of investment compony is Limited Liability Company (LLC). It is necessary to choose legal name for the company and draft a set of documentation including constituent documents and registration form.
- Step 4. Drafting of constituent documents.
After the choosing of legal form of the company the most important step is to draft a set of constituent documents which also includes the company charter. Constituent documents must contain information about company aims, its organizational structure, rules about making decisions and capital allocation.
- Step 5. Company’s registration.
Next step is the registration of the company in the Federal Tax Service. For that clients must apply the registration form, attach required documents (constituent documents, registration form, copies of passports of founders) and pay state fee.
- Step 6. Drafting investment strategy.
For determination of the type of stocks it is necessary to create investment strategy. Also, it is important to determine risk-profile of the company. There are a lot of services which can help in strategy development in management, in identification of investment criteria and in creation of procedure in risk management.
- Step 7. Receiving of license and registration of management company.
For implementation of investments in Russia company must have special license which allows the work of management company. Central Bank is responsible for giving that type of license. For getting license clients make a registration form with required set of documents (constituent documents, business-plan, finance documents, professional qualification, etc.).
Specialties of investment company license
License of Federal Financial Market Service is a special permission for conduct of broker, dealer and investment businesses. Central Bank document give the access to stock market and give opportunity to provide different services.
Different types of business require different authorized capital:
- For brokers it must be no less than 10 mil rubles.
- For trust management it must be no less than 35 mil rubles.
- For depositories it must be no less than 70 mil rubles.
Also, staff of the company should be completed according to special requirements:
- General Manager must have work experience of at least one year, he/she should not have criminal records.
- Supervisor with bachelor’s or master’s degree in economics or in jurisprudence and with work experience of at least two years, with qualification certificate 1.0 and without criminal record.
For taking Federal Financial Market Service license it is necessary to apply a set of documents to Central Bank:
- Full bank statement and other documents which provide information about credits and debts.
- Audit report.
- Documents about current financial investments.
- Regulation plan for professional risks reduction.
How manage the investment company?
The chief point to know that common property of the firm is divided into membership interests. Amount is determined by proportional price of registered contribution.
During the period of investment company’s activity division of common property and allocation of shares is not permitted expect for situations that provided by investment company contract. For taking decisions about founders common issues, investment company contract could provide investment committee establishment.
If there are difficulties with the creation and operation of an investment company in Russia, it is important to take advice in time. VALEN’s lawyers and financiers will help you with understanding intricacies of this type of business in Russia.