Russian Civil Code - Legal Advice for Foreigners
Civil Law in RussiaUpdated on Wednesday 28th July 2021
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The Civil Law in Russia has as main regulatory body the Civil Code that derives from the Roman law. The Russian Civil Code is comprised of four parts: the first part contains general rules and definitions, the second part provisions the types of obligations, the succession law is the third part of the Russian Civil Law and the fourth part comprises regulations about intellectual property. Our lawyers in Russia can offer detailed information about the legislation applicable and can also guide foreigners in varied business matters.
The first part of the Russian Civil Code
The first part of the Russian Civil Code was enabled in 1995 by the State Duma and contains three sections. The first section contains general dispositions about the civil legislation and it has five subsections:
- subsection one deals with the civil legislation and civil rights of parties involved in business relations;
- subsection two defines the natural persons and business entities that can be incorporated in Russia. These are the general and limited partnership, the limited liability company, the double liability company, the joint stock company, the subsidiary and non-profit organization etc.;
- subsection three defines the objects of civil rights, such as money, real estate property, services and intellectual property rights;
- subsection four defines the agreements natural persons or legal entities conclude and their form;
- subsection five refers to the limitation of actions.
Section two of the first part in the Russian Civil Code refers to the rights of citizens to own real estate properties. Section three refers to general provisions on the law of obligation, defines the contract, the terms a contract may be concluded under, the conclusion and cancellation of a contract.
The second part of the Russian Civil Code
The second part of the Civil Law in Russia was enforced in 1996 and contains details about the law of obligations. It is made up of one section that is divided into chapters. The law of obligations in Russia separates the types of obligations, defines the terms “purchase”, “sale” and “lease”. This part of the Russian Civil Law also defines the work contract, the domestic and building contracts. Chapters 42 to 47 define and regulate loans and credits, bank accounts, deposits and payments.
The Succession Law in Russia
The third part of the Civil Code in Russia refers to the law of succession and it was enabled in 2002. The Russian law of succession states that an inheritance or real estate assets will be transmitted to third parties by universal succession according to the Civil Code’s provisions. Succession can be by will or by operation of law. A person has a right to leave a will through which a third party or parties called heirs are entitled to own the deceased’s assets.
The succession by operation of law consists in naming the heirs of a deceased person based on the priority status according to Articles 1142 to 1145 and 1148 in the Civil Code.
Intellectual property in the Russian Civil Code
The Intellectual Property Law is the fourth part of the Civil Code in Russia and it was enabled in 2008. This law is the most complex in the world and it recognizes the rights for creating artistic works and inventions. The rights on intellectual property comprise copyrights, trademarks, patents and designs. All you need to know about how to register trademarks and patents in Russia can be offered by our Russian lawyers.
How to buy a property according to the Russian Civil Code
Foreign investors are attracted to the real estate sector in Russia due to the profit possibilities in this field. Buying real estate can be done quite easily if you take into account the basic rules mentioned by the Russian Civil Code. Here are some important details about how you can buy a property in Russia, with the mention that foreigners cannot buy agricultural land:
- One of the main regulations for acquiring a real estate property as a foreigner in Russia is to have a residence permit. The formalities of such a residence permit can be explained by one of our Russian lawyers who can also help you with the documents required.
- Real estate due diligence procedures are needed prior to the acquisition of a property in Russia. Such methods can reveal if there are any possible litigations linked to the real estate property.
- The sale-purchase agreement is the most important document for property purchase in Russia. This contract must comprise complete information about the property, former owners, if modifications were involved, price, and other details.
- Mortgages are also allowed for buying a property in Russia, however, it is best to follow the regulations imposed by the Russian local banks. You can also discuss all the details with our lawyers in Russia who can tell you more about the Civil Law in Russia and the conditions for buying a house in this country.
- A property purchase cannot be concluded without paying specific taxes to the notary and other relevant institutions.
If you decide on buying a property as a foreigner in Russia, it is advisable to discuss all the legal aspects with an expert in the field. You can ask for a free case evaluation and get in touch with our law firm in Russia for further assistance.
Opening a company in Russia – Provisions of the Civil Law in Russia
International entrepreneurs have many business opportunities in Russia and can easily start a company in this country. In most cases, the limited liability company in Russia (OOO) is the right choice of investors due to simplified formalities and fast access to the relevant authorities in charge of incorporation.
Among the requirements for establishing an LLC in Russia, one must observe the minimum share capital of RUB 10,000 which needs to be deposited in a local bank account. Once the company is registered for taxation and social contributions, the firm can commence the activities. Registering a company in Russia is another important topic you can detail with our experts in the field. An experienced lawyer in Russia can guide you throughout the incorporation process of a business in this country, regardless of the chosen city for future activities.
If you would like to make investments in Russia, you might want to observe a few facts and figures that highlight the economic direction of this country:
- Almost USD 464 billion was the total FDI registered in Russia in 2019.
- The Netherlands, Cyprus, UK, Bermuda, Ireland, and Luxembourg represent the main investors of Russia.
- Mining and quarrying was the main sector that absorbed nearly 23% of the total FDIs registered in 2019 in Russia.
- The manufacturing sector is another important field in Russia that attracted around 20% of Russia’s total FDIs in the same year.
- The 2020 Doing Business report issued by the World Bank ranked Russia 28th out of 190 economies in the world in matters of simplified business and more.
How can foreigners get married in Russia?
The Civil Law in Russia, and particularly the first part stipulates the formalities for marriages in this country. Getting married in Russia as a foreign citizen requires attention in terms of documents: a valid passport with the Russian visa, proof of marriage dissolution if it is the case, a certificate of no impediment, information about domicile in Russia, plus specific forms are required. All these documents must be presented to the local civil registry named ZAGS.
The formalities that implicate foreigners getting married in Russia can be detailed by our Russian lawyers with experience in this field. All you need to know about the Russian Civil Code can be offered by our specialists.
Working with our law firm in Russia
Foreigners in Russia can be helped in matters linked to the Civil Code in Russia. Purchasing a property, getting married in Russia, or registering a trademark are important aspects that need to be attentively considered from a legal point of view. Our customers can benefit from legal counseling and guidance, confidence, and professionalism when collaborating with us.
If you want to start a company and you need details about the Civil Law, you can contact our law firm in Russia.