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How to Check Your Russian Counterparty: Analysis of the Package of Documents
September 6, 2020 20:19

(Source: https://novorab.ru/2019/06/04)

In order to protect itself from all possible risks in the conduct of business activities and claims from the tax authorities, the company should take several steps to conduct an audit of the counterparty. Verification is usually carried out in four stages:

Stage 1. Analysis of data from the Internet resources of official bodies

Stage 2. Analysis of the package of documents

At this stage, you need to request a package of documents from a potential counterparty, duly certified:

Copies of the pages of the organization's charter, containing its full and abbreviated name, location, structure and competence of the organization's management bodies and their decision-making.

Copies of the certificate of state registration of a legal entity and a copy of the certificate of registration with the tax authority.

Extract from the Unified State Register of Legal Entities, statistical codes (OKPO, OKATO, OKVED and others).

Certificates about the absence of arrears on obligatory tax payments.

Documents confirming the powers of the persons signing the contracts - notarized powers of attorney, order for the appointment of a director or other documents.

Copies of financial statements. The annual accounting statements of all organizations are open and can be obtained either from the company itself or from Rosstat (http://www.gks.ru/accounting_report).|

Contractor firm cards.

Lease agreements or ownership of office and industrial premises.

Unfortunately, the list of required securities for verification is not approved by law, therefore the counterparty has the right to refuse to provide data. Such a refusal should immediately raise suspicion, since in good faith companies, as a rule, all documentation is in perfect order.

Additionally, it is recommended to make a written request to the tax office at the location of the counterparty. The courts consider such an appeal to be an exercise of due diligence, in addition, they oblige the tax authorities to provide the requested information within the limits of  tax secrets.

Stage 3. Analysis of informal information about the counterparty's activities

Stage 4. Assessment of test results and possible solutions

Russia-IC has developed mechanisms for checking the conscientiousness of counterparties, including inquiries and analysis of the necessary documentation, as well as a study of the Internet environment. We guarantee the reliability and accuracy of the information collected.
 




Author: Anna Dorozhkina

Tags: Check Your Russian Counterparty Russian laws    

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