Counterparty verification

One of the unfair business practices, which unfortunately occur in Russia, is transacting business with foreign companies via a non-existent firm or a non-registered company. Commercial relations with such “business partners” can result in significant losses and even present grounds for a criminal charge. Moreover, such “cooperation” can result in tax losses for the conscientious counterparty.

A no less widely spread criminal scheme of leading business with foreign companies is the criminal use of “one-day companies” set up for the purpose of tax evasion. Such firms are set up on the basis of forged or lost personal documents in the names of fictitious founders, and are led by fictitious managers. Commercial cooperation with such companies may result in serious non-reimbursable losses for non-residents of the Russian Federation.

In Russian business practices, it is often the case when one of the counterparties insists that the person having signed a contract did not have proper authorities to do it. This technique is actively used as an attempt to diminish or altogether cancel judicial sanctions for breach of a valid contract.

Besides, certain kinds of entrepreneurial activities, according to the Russian law, must be licensed on a mandatory basis. The absence of an appropriate license means that your counterparty lacks the civil legal capacity, which may result in the invalidity/unenforceability of the contract signed with such counterparty.

The Domkins and Partners Law Bureau  provides services to their clients on the territory of the Russian Federation related to legal verification of both your potential and existing counterparties. The lawyers of the Bureau will determine if the company that contacted you is registered in accordance with law, if it leads any commercial activity legitimately, and whether any potential threat of losses exists in case of commercial cooperation.

E-mail Address: bureau@domkin.ru

Phone / Fax : +7 495-646-86-11 (Moscow, Russian Federation)