Commercial Law

Development of a structure of a group of companies with the objective to enter the foreign market

By 12.11.2018 No Comments

Lawyers of Legal Studio at the request of a client developed a corporate structure in which the Russian company expanded the sales market of manufactured components for the foundry industry. In the course of structuring the group of companies – tax, customs, civil risks were analyzed, taking into account Russian and foreign laws, market conditions, risks in transactions between related parties (a Russian legal entity and a controlled foreign company) in relation to exported goods (components for foundry industry). Recommendations were developed to minimize tax risks when applying pricing transfer legislation in the case of export transactions between related parties, and a transaction structure was developed that excluded tax risks associated with agreeing the price of transactions between related parties. The planned annual turnover of the company is 5 million euros.