Subsidiary incorporation
Country:Russia
SCHNEIDER GROUP registered a Russian subsidiary for Doppelmayr and provided an interim General Director for the purpose of company incorporation and administrating in accordance with head office’s instructions. The interim General Director represented the customer before public authorities and managed customs and tax declarations in close collaboration with the parent company.
Customer
Doppelmayr Cable Car is a leader in ropeway technology and quality, with production sites and sales and service subsidiaries in 50 countries. The company has deployed over 15,100 ropeway systems for customers in 96 countries around the world to date.
The challenge
When establishing a subsidiary in Russia, businesses should not overlook the fact that, according to Russian legislation, the General Director has more mandatory responsibilities as well as more powers than in Western European countries. As trust is needed between the head office, international shareholders and the General Director of their local subsidiary, Western businesses often prefer to designate this position to an employee from head office.
The process of acquiring a work permit for foreigners in Russia is complicated. To apply for a work permit, there should already be a legal entity in place, but at the same time, a General Director is required to register a legal entity. In March 2012, Doppelmayr ran across this issue when creating a subsidiary.
The solution
We provided an interim General Director for company incorporation and further administration. The General Director represented the customer before public authorities and managed customs and tax declarations in close collaboration with the parent company and in keeping with their instructions.
The result
SCHNEIDER GROUP’s solution was a success for Doppelmayr, which has now been present in the Russian market for more than four years. SCHNEIDER GROUP continues to provide interim management services, acting in full correspondence with the head office instructions.
This strategy has made it possible to handle document flow as appropriate and manage administrative issues with authorities as prescribed by local legislation. After two years in the Russian market, with companies in Moscow and Sochi, Doppelmayr expanded from supplying ropeway spare parts to local manufacturing of ropeways in the CIS countries. Doppelmayr opened an additional branch in Samara in 2014 and is looking forward to further expansion. Since its inception in the Russian market, SCHNEIDER GROUP has also provided legal and accounting services to Doppelmayr.