Localization

Case study

Challenge

A German company planned to establish their production in Russia, but faced a series of challenges and obstacles that complicated the project. The company had no Russian- speaking employees or experts with detailed knowledge of the Russian market in the German head office. The bureaucratic requirements were high and the legal and tax issues posed another challenge for the company that were not to be underestimated.

Furthermore, our client was not certain who could be a trustworthy and reliable partner for such a large scale enterprise. Limited resources called for an economical and efficient approach and influenced the choice between Industrial Parks, Special Economic Zones, Greenfield, and Brownfield as the preferred location.

Solution

SCHNEIDER GROUP developed a holistic, client-oriented concept: the 5-stage localization solution. Our multi-lingual expert team from various industries offered the customer first-hand insight from market leaders, as well as market research expertise.

Initially, SCHNEIDER GROUP conducted a feasibility study that provided the client with a better understanding of the scale, risk, and cost of production setup, ultimately empowering the client in their decision to localize. The analysis accounted for the client’s start-up phase, preferences, and market prospects.

Based on a supplier analysis, we contacted suitable business partners, who were important for all aspects of the production setup.

As part of the site analysis, SCHNEIDER GROUP created a list of available locations with optimal infrastructure, tax considerations, and other important qualities.
SCHNEIDER GROUP’s partnership network also offered a superb selection of real estate companies, engineering firms, and other business partners. The client chose an industrial park in western Russia as the most suitable production location based on this advice.

The implementation of the localization solution included import, customs, legal and tax services, registration of the company in Russia, and due diligence.
SCHNEIDER GROUP ensured direct access to the relevant authorities, which considerably simplified the bureaucratic processes.

Further implementation was done in close cooperation with our qualified and experienced business partners and experts in IT / ERP and back office, which includes personnel search / HR, Outstaffing, administrative support, IT solutions, Interim Management, and others.

Result

Our client successfully established local production in Russia in a cost-effective manner and within a relatively short period of time. Soon after the localization process was completed, productivity and sales significantly increased. In addition, our client gained valuable professional experience and skills during the localization process, while at the same time minimizing risks to the business. Furthermore, SCHNEIDER GROUP’s taxation and import expertise saved the client significant tax expenses and other unnecessary costs. In the future, our client will benefit from all possible tax incentives and subsidies on a regional and national level.

Get in touch with us
Alex Stolarsky
Partner, Legal, Compliance, Tax & Interim Management, Rechtsanwalt
+7 / 495 / 956 55 57
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