Hacker News Reader

Comment by cf141q5325 | Hacker News Reader

Thank you! Do you know if its only incorporation in EU countries? I am not quite sure about globally, but since Canadian and US Limiteds are likely out of the question as well that would (have been?) Hong Kong then?

For the banking, is that transactions out of the country or any transaction, so also from money you get from out of Russia? I was more looking through the sanction perspective

View on HN

  > Do you know if its only incorporation in EU countries?

Anywhere abroad. It is illegal (and has been illegal since 2014 or so, can't remember) for a Russian resident to have a controlling stake in a company not incorporated in Russia.

  > is that transactions out of the country or any transaction

It's about transfers of funds from Russia to foreign bank (and "bank-like") accounts. Accepting money from abroad is still legal -- which is confirmed by the fact that they yesterday imposed a requirement of mandatory conversion of 80% of any foreign-currency revenue to rubles.

> Anywhere abroad. It is illegal (and has been illegal since 2014 or so, can't remember) for a Russian resident to have a controlling stake in a company not incorporated in Russia.

Do you know if that also applies for legal entities or only natural persons? That would mean a Russian holding company for the shares? Its a structure common even inside the EU as well for tax reasons.

  > Do you know if that also applies for legal entities or only natural persons?

Not sure (would adive to consult a lawyer), but it's quite possible that it applies both to physical persons AND legal entities.

1) It's not forbidden to control foreign company - you have to report it in 3 months time. And potentially pay taxes if there's no double taxation agreement. 2) That 80% is for corporations bringing funds into Russia as foreign currency. For an individual you'd need ruble to buy things in Russia anyway so it is not a thing to care about.

> It is illegal (and has been illegal since 2014 or so, can't remember) for a Russian resident to have a controlling stake in a company not incorporated in Russia.

How does this work with Gazprom owning Nord Stream 2 AG (incorporated in Switzerland)? Exempting legal entities would make the law extremely easy to circumvent, so I'm guessing that's not it.

Reply on news.ycombinator.com