For classifying companies as foreign legal entities you will have to use various legal acts, including:
- Its main vector for development
- The type of legal standing this company has
But the prevailing condition for the company is for it to comply to all the laws of its native country
Legal position of foreign legal entities in the Russian Federation is defined by the norms that are defined by the country’s laws. You should remember, that it is possible to consider a foreign company a legal entity only if it is qualified as a company by the standards of its native country.
Foreign firms and companies have the same rights as Russian organizations. This is the reason why they can do all the same operations as native Russian companies.
Overall Russian Civil law has other criteria for defining the nationality of the company in question. The incorporation principle decides whether some organization has requirements of being considered a company. First of all, it is necessary to determine which government it belongs to.
In the context of legal position of foreign organizations we will stop to discuss the process of registering them in a government roster (This will be discussed in detail later). The procedure is done by trusted federal structures of executive government structures. In Russia this organization is called Ministry of Taxation, which will later be called MNC. The organization will be registered in the same region where it operates.
The legal status of the business activities a company does is often verified by a letter from the roster of the country the company is sourced in.
There are other proofs that may be used to show the status of a company. These are usually written in the laws of the company’s original country. Remember that the Russian laws about foreign companies also apply to any other companies inside Russia, if foreign entities own over 50% of the organization.