What is the procedure to start a joint venture in Russia?

Starting a joint venture (JV) in Russia involves a structured legal and administrative process. Joint ventures are a popular way for foreign investors to enter the Russian market by partnering with local companies, combining resources, and mitigating risks. In the context of business in Russia, the procedure is as follows:

The first step is defining the structure of the joint venture. In Russia, a joint venture is commonly set up as either a Limited Liability Company (LLC) or a Joint Stock Company (JSC). An LLC (known as ООО - Общество с ограниченной ответственностью) is the most popular form because of its flexibility, simpler management, and limited liability for participants. A JSC may be preferred when raising capital from the public is considered or if larger, more formal structures are needed.

Once the structure is chosen, the parties must negotiate and draft a Joint Venture Agreement (JVA). This agreement outlines the rights and obligations of each party, profit distribution, governance mechanisms, dispute resolution processes, exit strategies, and ____ _________ ______ ______ _______ ____ _______ ________ __________ ________.
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