Ex-Pat Registration "Insufferably Painful"

DP has often reported problems encountered by companies with foreign capital registering in the city. TOO Maltus managed to create a precedent making the procedure easier. However, they still had interference by Customs to deal with.

<BR>DP has often reported problems encountered by companies with foreign capital registering in the city. TOO Maltus managed to create a precedent making the procedure easier. However, they still had interference by Customs to deal with.<BR>The registration of companies with foreign capital in St Petersburg or any other Russian region other than Moscow is hampered by the 1991Foreign Investment Law, which stipulates that companies with capital of more than 100m roubles must be entered into a register of foreign companies at the State Registration Chamber (GRP). In other words, such companies can only be registered in Moscow. Some companies, however, have managed to sidestep the legislation and register in St Petersburg. A company with a very small charter capital is created, and after registration the decision is taken to expand. According to law, charter additions noting any expansion in a company's capital are processed by the same organ that registered the company. This is what TOO Maltus did, but the St Petersburg Registration Chamber refused to register them. An arbitration lawsuit followed, which the chamber lost. <BR>Investors' registration problems were far from over, however. According to a Registration Chamber employee, the Customs Service demands compulsory inclusion of every company in the GRP register, otherwise it refuses to recognise a company's legal status.