Ahead of signing a contract with foreign company it is very important to monitor consequences of deal breaching or other misconducts. If you can't take back your payment from the breaching company, you can lose a lot of time nerves and money.

There are some main issues to know ahead of signing the contract with Russian company.

1. Company history

If the company founded few time ago it is very dangerous to deal with. Especially if the authorized capital has few amount. Much better if the company has long history and trace in courts or tax authorities.

2. Mass directing

If the head of the company manages a lot of companies, it is mostly unlikely it is the real one in the company. In most of case it is a figurehead.

3. Company address

If Russian company address is unreal tax service admits it through the site sometimes. But it is important to try it by own and prove the location through the representative in Russia (physically for sure).

4. Court cases

If Russian company has long time history and doesn't have even one case in the court (or arbitration) it is very strange fact. The company which exist more than 5 years hasn't to avoid trial in court or arbitration due to tax or other administrative rules. Sometimes these are other trials than mentioned.

5. Too much court cases

Too much trials it is not good fact as well. But in this case you should check these trials all to get what company is in the deal. May be all cases connected or many of them have little amount of claims. Or may be the trials follows from usual and normal activity.

But if the company doesn't participate in the trials or doesn't delegate a representative it is very bad signal.

6. Too much changes with a company

If a company changes location, director or charter it can be bad signal. Often change of the location may means some troubles with tax authorities. Changes of heads is strange as well.

7. A company is in termination stage

Company may be in termination stage due to own decision or in case of bankruptcy. Tax service site will help you to find it out.

8. Bank account belongs to other legal entity

If Russian company ask to pay to the other company's bank account it is very strange fact as well. There is an odd fact that your client ask you do this way.

9. The contract is not signed by the head of the Company

Sometimes a company is too big to afford singing all contracts (especially minor deals) by the head of the company. But this fact can be checked by the comparison of the several information about the one: authorized capital, creation date, court cases, tax payments etc.

But even in big Russian companies director usually signs contracts.

10. The company location has "the address of mass registration" mark

Usually tax services let to know about it through the site.

11. A company agrees contract changes too easy

12. A company doesn't agree to use different bank services

There are some other issues can be checked to. But the ones above are most common and can be used by any companies.

If you want to be sure of your counterpart or client our company would be pleasure to cooperate with you.

Don't hesitate to contact us and ask your questions. Big experience and huge luggage of knowledge allow us to do our job the best.