|
Server : Apache/2.4.62 System : FreeBSD fbsdweb2.web.rcn.net 14.1-RELEASE FreeBSD 14.1-RELEASE releng/14.1-n267679-10e31f0946d8 GENERIC amd64 User : www ( 80) PHP Version : 8.3.8 Disable Function : NONE Directory : /domains/russinvecchi/pub/ |
Upload File : |
<html>
<head>
<title>Russin & Vecchi - attorneys</title>
<meta http-equiv="Content-Type" content="text/html; charset=iso-8859-1">
<meta name="keywords" content="Russia, Russian, attorney, attorneys, lawyer, lawyers, law, counselors, counsellors, firm, legal, international, Moscow, Vladivostok, Sakhalin, Bangkok, Hanoi, Ho Chi Minh City, New York, Puerto Plata, Taipei, Santo Domingo, and Washington, D.C., DC, Yangon, Yuzhno-Sakhalinsk, Vietnam, Thailand, United States, US, USA, Dominican Republic, Taiwan, Myanmar, Burma, far east, maritime, shipping, trade, oil, gas, petroleum, Russin, Vecchi, business, commercial, bilingual, local, global, banking, finance, litigation, arbitration, securities, recovery, taxation, minerals, energy, trademark, patent, copyright, contract, real estate, insurance, labor, technology, transportation, e-commerce, internet
">
<meta name="description" content="Russin & Vecchi is an international law firm with eleven independent offices spanning the globe and offers many business and commercial legal services.
">
</head>
<body bgcolor="#FFFFCC" onLoad="" leftmargin="0" topmargin="0" marginwidth="0" marginheight="0" text="#000000" link="#660000" vlink="#660000" alink="#FF3333">
<table width="100%" border="0" cellspacing="0" cellpadding="0">
<tr align="center" bgcolor="#003366">
<td>
<table width="392" border="0" cellspacing="0" cellpadding="0">
<tr>
<td><a href="../index.html"><img src="../graphics/hdr_logo.gif" width="118" height="111" alt="Home" border="0"></a></td>
<td><img src="../graphics/hdr_logotype.gif" width="266" height="111" alt="Russin & Vecchi L.L.P."></td>
<td><img src="../graphics/shim.gif" width="126" height="10"></td>
<td> </td>
</tr>
</table>
</td>
</tr>
<tr align="center">
<td height="1" background="../graphics/bgnd.gif">
<table width="392" border="0" cellspacing="0" cellpadding="0">
<tr>
<td background="../graphics/bgnd.gif" valign="top"><img src="../graphics/office_nav010405.jpg" width="750" height="37" border="0" usemap="#MapMapMapMap" align="top">
<map name="MapMapMapMap">
<area shape="rect" coords="2,7,48,26" href="../subpage/bangkok.html">
<area shape="rect" coords="52,9,83,27" href="../subpage/hanoi.html">
<area shape="rect" coords="84,8,170,29" href="../subpage/hcm.html">
<area shape="rect" coords="218,8,270,25" href="../subpage/newyork.html">
<area shape="rect" coords="171,8,216,26" href="../subpage/moscow.html">
<area shape="rect" coords="272,8,338,27" href="../subpage/plata.html">
<area shape="rect" coords="339,10,421,26" href="../subpage/santo.html">
<area shape="rect" coords="424,7,455,28" href="../subpage/taipei.html">
<area shape="rect" coords="457,10,521,25" href="../subpage/vladivostock.html">
<area shape="rect" coords="606,6,647,28" href="../subpage/yangon.html">
<area shape="rect" coords="649,5,746,28" href="../subpage/yuzhno.htm">
<area shape="rect" coords="524,9,603,26" href="../subpage/wash.html">
</map>
<map name="MapMapMap">
<area shape="rect" coords="4,9,43,28" href="../subpage/bangkok.html">
<area shape="rect" coords="46,10,77,28" href="../subpage/hanoi.html">
<area shape="rect" coords="78,9,144,29" href="../subpage/hcm.html">
<area shape="rect" coords="188,9,227,27" href="../subpage/newyork.html">
<area shape="rect" coords="148,8,186,27" href="../subpage/moscow.html">
<area shape="rect" coords="233,9,285,26" href="../subpage/plata.html">
<area shape="rect" coords="288,10,353,26" href="../subpage/santo.html">
<area shape="rect" coords="355,8,386,29" href="../subpage/taipei.html">
<area shape="rect" coords="387,9,441,26" href="../subpage/vladivostock.html">
<area shape="rect" coords="506,6,547,28" href="../subpage/yangon.html">
<area shape="rect" coords="548,9,628,29" href="../subpage/yuzhno.htm">
<area shape="rect" coords="441,8,505,25" href="../subpage/wash.html">
</map>
<map name="MapMap"><area shape="rect" coords="4,9,43,28" href="../subpage/bangkok.html"><area shape="rect" coords="46,10,77,28" href="../subpage/hanoi.html"><area shape="rect" coords="82,9,161,28" href="../subpage/hcm.html"><area shape="rect" coords="207,10,255,29" href="../subpage/newyork.html"><area shape="rect" coords="166,8,205,29" href="../subpage/moscow.html"><area shape="rect" coords="259,8,322,28" href="../subpage/plata.html"><area shape="rect" coords="329,9,400,28" href="../subpage/santo.html"><area shape="rect" coords="404,8,435,29" href="../subpage/taipei.html"><area shape="rect" coords="438,9,502,29" href="../subpage/vladivostock.html"><area shape="rect" coords="585,7,626,29" href="../subpage/yangon.html"><area shape="rect" coords="512,7,583,27" href="../subpage/wash.html"></map></td>
</tr></table></td></tr>
<tr align="center" bgcolor="#000000">
<td height="1"><img src="file:///L|/new%20site/graphics/footer_holder.gif" width="1" height="1"></td>
</tr>
</table>
<table width="597" border="0" cellspacing="0" cellpadding="0" align="center">
<tr>
<td width="14" height="6628" valign="top">
<P><img src="../graphics/footer_holder.gif" width="11" height="76"></p>
</td>
<td width="583" valign="top">
<P> </p>
<P align="center"><font color="#660000"><b><font face="Arial, Helvetica, sans-serif" size="4" color="#990000">Frequent
Legal Issues for Contractors on <br>
Sakhalin Oil and Gas Projects<br>
</font></b></font><font size="2" face="Arial, Helvetica, sans-serif">(Appearing soon in the Russian Energy Law Journal)</font></p>
<p align="center"><font color="#990033" size="2" face="Arial, Helvetica, sans-serif"><strong>XVI.
An Overview of the Major Aspects of Licensing Procedure</strong></font></p>
<p><font size="2" face="Arial, Helvetica, sans-serif"><em>Presented by
<a href="../subpage/attorneys.html#sll">Sergei L. Lazarev</a>, Partner of the firm’s Russian
Practice Group and Executive Director of the firm’s Moscow office.</em></font></p>
<p><font size="2" face="Arial, Helvetica, sans-serif"><strong>Basic Principles of Licensing</strong></font></p>
<p><font size="2" face="Arial, Helvetica, sans-serif">The Federal Law “On
Licensing Certain Types of Activities,” (“Law
On Licensing”) <font size="1">(173) </font>sets forth the general
requirements of licensing procedures in Russia <font size="1">(174) </font>.
The Law on Licensing defines relevant terms associated
with licensing, provides a list of activities, which are subject to licensing,
and regulates relations arising between State authorities and legal entities
(or entrepreneurs) that apply for licenses<font size="1">.</font>. </font></p>
<p><font size="2" face="Arial, Helvetica, sans-serif">Pursuant to the Law
on Licensing, the basic principles of licensing include: 1) uniformity
with respect to the economic environment throughout
the territory of the Russian Federation, the types of activities subject
to licensing and licensing procedures; 2) statutes establishing the specific
types of activities subject to licensing containing licensing requirements
and conditions; 3) public awareness and access to information regarding
licensing; and 4) the observance of licensing laws. <font size="1">(175) </font></font></p>
<p><font size="2" face="Arial, Helvetica, sans-serif"><strong>Criteria for Determining Activities Subject to Licensing</strong></font></p>
<p><font size="2" face="Arial, Helvetica, sans-serif">In determining whether
an activity should be subject to licensing, legislators should consider
the following: threat of damage to the rights, lawful
interests and health of citizens, to the defense and security of the
state, to the cultural heritage of nations of the Russian Federation,
and whether such activity may be regulated by methods other than licensing.
<font size="1">(176)</font> When an activity is determined to meet
these criteria, it should be included in the list of activities subject
to licensing established by
the Law on Licensing, if necessary, by amendment. </font></p>
<p><font size="2" face="Arial, Helvetica, sans-serif"><strong>Licensing Authority</strong></font></p>
<p><font size="2" face="Arial, Helvetica, sans-serif">The Law on Licensing
authorizes the Russian Government to approve statutes on licensing
specific activities, determine which federal executive bodies
should be responsible for licensing specific activities, and establish
the types of activities which should be licensed by Regional executive
bodies. The list of activities subject to licensing by federal executive
bodies <font size="1">(177) </font>as well as by Regional executive bodies
is established in Government Enactment No. 135, dated November 02, 2002.</font></p>
<p><font size="2" face="Arial, Helvetica, sans-serif">The licensing agencies
are authorized to perform the following: issue licenses, re-execute
documents confirming the availability of licenses,
suspend the validity of licenses, renew licenses, annul licenses, maintain
the license registry, and enforce licensee observance of licensing requirements
and conditions while performing licensed activities subsequent to license
issuance. <font size="1">(178) </font></font></p>
<p><font size="2" face="Arial, Helvetica, sans-serif"><strong>Validity of a License</strong></font></p>
<p><font size="2" face="Arial, Helvetica, sans-serif">There are territorial
and other limitations to the validity of licenses. According to the
Law on Licensing, licenses issued by federal licensing
agencies are valid throughout the Russian Federation, while licenses
issued by regional agencies require prior notification of the licensing
agencies of a different region if a licensee intends to perform licensed
activity in that region.<font size="1">(179) </font> In addition, each
type of activity listed in Article 17 of the Law on Licensing requires
the receipt of a separate
license, and only the legal entity or entrepreneur to whom the license
has been issued may perform the particular licensed activity. In other
words, a license cannot be assigned or otherwise transferred by one legal
entity to another.</font></p>
<p><font size="2" face="Arial, Helvetica, sans-serif">Licenses are issued
for a term of validity of at least five years, unless the applicant
requests a shorter term in the license application. <font size="1">(180) </font></font></p>
<p><font size="2" face="Arial, Helvetica, sans-serif"><strong>Documents Accompanying a License Application</strong></font></p>
<p><font size="2" face="Arial, Helvetica, sans-serif">Article 9 of the Law on Licensing provides that an applicant for a license
(a legal entity) must submit the following documents, common to all license
types, to the licensing agency in order to obtain a license: </font></p>
<p><font size="2" face="Arial, Helvetica, sans-serif">a. an application indicating:<br>
i. the name, the legal form and location of the legal entity;<br>
ii. licensed activity an applicant intends to perform;<br>
b. a copy of foundation documents and certificate on state registration
of an applicant in its capacity as a legal entity;<br>
c. a copy of the applicant’s certificate of registration with the
tax body;<br>
d. a document confirming payment of fees for application review (approximately
$10);<br>
e. copies of documents confirming the corresponding qualifications of
the legal entity’s employees for licensing requirements.</font></p>
<p><font size="2" face="Arial, Helvetica, sans-serif">Copies of documents indicated
in sub-points “b” and “c” above,
not certified by a notary, should be presented with an original.</font></p>
<p><font size="2" face="Arial, Helvetica, sans-serif"><strong>Term of Review</strong> </font></p>
<p><font size="2" face="Arial, Helvetica, sans-serif">The licensing body must render a decision issuing or refusing to issue
a license within 60 days from the date that the application, with all
necessary attachments, is received.</font></p>
<p><font size="2" face="Arial, Helvetica, sans-serif">In addition to the documents listed above, statutes on licensing specific
types of activities may require submission of other documents, as mandated
by regulations governing the performance of such activities.</font></p>
<p><font size="2" face="Arial, Helvetica, sans-serif">Upon receipt and
acceptance of documents by the licensing agency, the agency should
provide the applicant with a list of documents accepted,
indicating the date of their receipt. <font size="1">(181) </font> An
applicant for a license bears responsibility under Russian law for the
submission of unreliable or
distorted data. <font size="1">(182) </font></font></p>
<p><font size="2" face="Arial, Helvetica, sans-serif"><strong>Grounds for Refusal</strong></font></p>
<p><font size="2" face="Arial, Helvetica, sans-serif">The licensing authority
may deny a license application if the documents submitted by the applicant
contain unreliable or distorted information,
or if an applicant does not meet the licensing requirements and conditions. <font size="1">(183) </font></font></p>
<p><font size="2" face="Arial, Helvetica, sans-serif"><strong>License Annulment and Suspension</strong></font></p>
<p><font size="2" face="Arial, Helvetica, sans-serif">Licenses may be annulled in the following events: <font size="1">(184) </font></font></p>
<p><font size="2" face="Arial, Helvetica, sans-serif">- liquidation of
the legal entity or termination of its activity as a result of its
reorganization, except for transformation (change of
its legal form).</font></p>
<p><font size="2" face="Arial, Helvetica, sans-serif">- non-payment by the licensee of the license issuance fee within three
months from receipt of the licensing agency decision granting the license.</font></p>
<p><font size="2" face="Arial, Helvetica, sans-serif">- Licensee’s infringement
of license requirements and conditions, which entail infliction of
damage to the rights, lawful interests, health
of citizens, defense and security of the state, cultural heritage of
nations of the Russian Federation, and (or) in the event a licensee has
not eliminated the infringements within the period of time established
by the license agency.</font></p>
<p><font size="2" face="Arial, Helvetica, sans-serif">Licensing agencies
have the right to suspend the effect of a license if they become aware
of a
licensee’s repeated or gross infringements
of the license requirements and conditions. In such event, the licensing
agency establishes a period of time for the elimination of such infringements
and the license is suspended for this period of time. <font size="1">(185) </font>This
period cannot exceed six months. <font size="1">(186) </font> After this
period of time, if the licensee has not eliminated these infringements,
the licensing
agency should apply to
a court for annulment of the license. If the licensee has eliminated
the infringements, it should notify the licensing agency in written form.
Within three days of receipt of such notice, the licensing agency should
verify that the infringement has been eliminated in fact and make a decision
on renewal of the license and inform the licensee. No payment is levied
for the renewal of the license. The period of validity of the license
is not extended as a result of the period of suspension. <font size="1">(187) </font></font></p>
<p><font size="2" face="Arial, Helvetica, sans-serif">The licensing agency must inform the licensee if it suspends, annuls,
or files an application with the court to annul, a license, in written
form, with justification of its decision within three days of its adoption.
Such decision may be appealed by the licensee in accordance with the
procedure established by Russian law.</font></p>
<p><font size="2" face="Arial, Helvetica, sans-serif"><strong>Content of a License</strong></font></p>
<p><font size="2" face="Arial, Helvetica, sans-serif">The Law on Licensing provides that the license should indicate the following:<br>
- Name of the licensing agency;<br>
- Name, legal form and address of the licensee;<br>
- Licensed type of activity;<br>
- Term of validity of the license;<br>
- Taxpayer Identification number;<br>
- License number;<br>
- Date of issuance of the license.</font></p>
<p><font size="2" face="Arial, Helvetica, sans-serif"><strong>Construction Contractors and GOSSTROI Registration</strong></font></p>
<p><font size="2" face="Arial, Helvetica, sans-serif">Russian law establishes
specific standards for construction, referred to as the State Standard
(GOST). <font size="1">(188) </font> These standards are used to categorize
buildings and other construction projects into three separate levels
based on the degree of responsibility required for their construction.
This is determined by the economic, social and ecological impact of the
construction. </font></p>
<p><font size="2" face="Arial, Helvetica, sans-serif">For instance, the first level of responsibility applies to buildings
and structures, the failure of which is highly likely to lead to significant
economic, social and ecological damage. These include oil tanks with
a capacity of 10,000 cubic meters or more, pipelines, industrial buildings
with heights equal or greater than 100 meters, telecommunication towers
of 100 meters or more, and buildings and structures that are considered
unique in some way.</font></p>
<p><font size="2" face="Arial, Helvetica, sans-serif">The second level of responsibility applies to buildings and construction
projects of a massive, or complex nature such as residential complexes,
and public, industrial, and agricultural buildings. The third and lowest
level of responsibility applies to constructions that have seasonal and
auxiliary functions, such as hotbeds, hothouses, summer pavilions, small
warehouses and similar constructions.</font></p>
<p><font size="2" face="Arial, Helvetica, sans-serif">Only the design and construction of hotbeds, hothouses, summer pavilions
and similar constructions, the failure of which would not create economic,
social or ecological hardships, do not require licensing.</font></p>
<p><font size="2" face="Arial, Helvetica, sans-serif">Design, construction
and engineering works for the construction of buildings and installations
of the first and second levels of responsibility in
accordance with the State Standard are subject to licensing.<font size="1">(189) </font> A
Government Decree provides the list of federal executive bodies that
perform licensing
procedures. <font size="1">(190) </font> Regulations establish the procedure
for application and issuance of licenses for each type of activity (design,
construction, engineering).
<font size="1">(191) </font> In addition, further guidance for construction
license applicants is provided by methodical recommendations issued by
Gosstroi, which include
a list of documents that must be submitted with the application, model
forms of the application, and some supporting documentation. <font size="1">(192) </font></font></p>
<p><font size="2" face="Arial, Helvetica, sans-serif"><br>
<strong>Types of Construction Subject to Licensing</strong></font></p>
<p><font size="2" face="Arial, Helvetica, sans-serif">A regulation referred
to as the Model Classifier provides a comprehensive list of activities
in the construction area, which are subject to licensing.
<font size="1">(193) </font> A license application must contain the
specific types of activities that an applicant intends to undertake,
as they are indicated in the Model
Classifier.<br>
<br>
For example, the Model Classifier lists the following activities, among
others, as requiring a license under the heading “General Construction
Works”:</font></p>
<p><font size="2" face="Arial, Helvetica, sans-serif">1 Geodesic work carried out on construction sites</font></p>
<blockquote>
<p><font size="2" face="Arial, Helvetica, sans-serif">- Geodesic marking basis for construction;<br>
- Marking work in the process of construction;<br>
- Geodesic control of the accuracy of the geometric parameters of buildings
(structures);<br>
- Executive geodesic survey;<br>
- Geodesic measurements of deformations of grounds, construction of buildings
(structures) in whole or part.</font></p>
</blockquote> <p><font size="2" face="Arial, Helvetica, sans-serif">2 Site preparation</font></p>
<blockquote>
<p><font size="2" face="Arial, Helvetica, sans-serif">- Clearing of territories and preparing them for construction;<br>
- Stripping and dismantling buildings and structures;<br>
- Construction of temporary roads, engineering utilities and structures;<br>
- Laying tracks.</font></p>
</blockquote>
<p><font size="2" face="Arial, Helvetica, sans-serif">3
Earth work</font></p>
<blockquote>
<p><font size="2" face="Arial, Helvetica, sans-serif">- Excavating, vertical planning;<br>
- Earth compaction and laying out ground cushions;<br>
- Land work in collapsible and heaving soils;<br>
- Land work in special conditions (in bogs, poor soil, salt soil, active
sand, landslide slopes).</font></p>
</blockquote> <p><font size="2" face="Arial, Helvetica, sans-serif">4 Stone works</font></p>
<p><font size="2" face="Arial, Helvetica, sans-serif">5 Precasting of concrete and ferroconcrete units</font></p>
<blockquote>
<p><font size="2" face="Arial, Helvetica, sans-serif">- Construction of formwork and rebar placement;<br>
- Precasting of solid concrete and ferroconcrete units.</font></p>
</blockquote> <p><font size="2" face="Arial, Helvetica, sans-serif">6 Assembling of concrete and ferroconcrete units</font></p>
<blockquote>
<p><font size="2" face="Arial, Helvetica, sans-serif">- Assembling of foundations and walls of underground portions of buildings;<br>
- Assembling elements of structures of above-ground portions of buildings
(columns, frames, girth rails, girders, beams, slabs, wall panels);<br>
- Assembling of ventilation blocks, module lift shafts and trash chutes,
utility blocks.</font></p>
</blockquote> <p><font size="2" face="Arial, Helvetica, sans-serif">7 Assembling of wood structures</font></p>
<blockquote>
<p><font size="2" face="Arial, Helvetica, sans-serif">- Site assembly of structures;<br>
- Assembling of factory-made wood (block) buildings and structures.</font></p>
</blockquote> <p><font size="2" face="Arial, Helvetica, sans-serif">8 Assembling of light weight enclosed structures</font></p>
<blockquote>
<p><font size="2" face="Arial, Helvetica, sans-serif">- Metal structures;<br>
- Enclosed structures made from extrusion panels and slabs;<br>
- Framed partitions;<br>
- Walls made from “sandwich” type panels;<br>
- Walls and structures made from glass blocks and shaped glass;<br>
- Window and door blocks, modules made of aluminum, PVX, fiberglass,
other polymers and combined materials.</font></p>
</blockquote> <p><font size="2" face="Arial, Helvetica, sans-serif">9 Insulation work</font></p>
<blockquote>
<p><font size="2" face="Arial, Helvetica, sans-serif">- Arrangement of insulation from rolled bituminous materials, hot asphalt
mixtures, bituminous pearlite and bituminous ceramzit;<br>
- Arrangement of insulation from polymers of rolled and sheet materials;<br>
- Arrangement of insulation from cement mortar;<br>
- Arrangement of insulation from polymers and emulsified mastic compounds;<br>
- Arrangement of insulation from metal sheets;<br>
- Arrangement of heat insulation using soft, hard and semi-hard fibrous
wares and arrangement of insulation coverings made of hard materials;<br>
- Arrangement of heat insulation from slabs and fill materials.</font></p>
</blockquote> <p><font size="2" face="Arial, Helvetica, sans-serif">10 Roofing work</font></p>
<blockquote>
<p><font size="2" face="Arial, Helvetica, sans-serif">- Arrangement of roofs from rolled materials;<br>
- Roofs made from polymers and emulsified bituminous make up;<br>
- Arrangement of roofs made from pieced units;<br>
- Arrangement of details of roofs made from metal sheets.</font></p>
</blockquote> <p><font size="2" face="Arial, Helvetica, sans-serif">11 Territory Improvement </font></p>
<blockquote>
<p><font size="2" face="Arial, Helvetica, sans-serif">- Arrangement of access, walkways and grounds;<br>
- Arrangement of open sports structures;<br>
- Planting.</font></p>
</blockquote> <p><font size="2" face="Arial, Helvetica, sans-serif">The Model Classifier also
requires the licensing of what it refers to as “Specialized Works” which
include, among others, the following types of activity:<br>
· Erecting special structures for intersectoral economy.<br>
· Arrangement of external engineering networks and communications.<br>
· Arrangement of internal engineering systems and equipment.</font></p>
<p><font size="2" face="Arial, Helvetica, sans-serif">Many other aspects of construction require licensing pursuant to the
Model Classifier. To cover all activities in the confines of this article
is impossible. Contractors are encouraged to refer to the Model Classifier
with regard to each activity they intend to perform.</font></p>
<p><font size="2" face="Arial, Helvetica, sans-serif"><strong>Licensing Requirements</strong></font></p>
<p><font size="2" face="Arial, Helvetica, sans-serif">Contractors seeking
to perform licensed activities should keep in mind the following requirements,
which must be satisfied: <font size="1">(194) </font></font></p>
<blockquote>
<p><font size="2" face="Arial, Helvetica, sans-serif">· Qualification of
Workers;</font><font size="2" face="Arial, Helvetica, sans-serif"><br>
a) The legal entity must have managers and specialists with higher
or mid-professional education for the profile of work. No less
than 50%
of managers and specialists on the staff of the legal entity must
have higher professional education and work experience of no
less than three
years for specialists with higher professional education, and no
less than five years for specialists with mid professional education;<br>
b) No less than once every five years, a legal entity’s
workers who construct buildings and structures must attend continuing
professional
education courses to improve and refresh their skills;</font></p>
<p><font size="2" face="Arial, Helvetica, sans-serif">· Sufficient Technical
Means for performing the licensed type of works;<br>
c) The legal entity must have under right of ownership or on some other
legal basis buildings, structures, construction vehicles, transport means,
mechanical and hand instruments, technological rigging, mobile energy
devices, means for guaranteeing safety, means of control and survey;</font></p>
<p><font size="2" face="Arial, Helvetica, sans-serif">· Observance of the
Law;<br>
d) Performance of licensed activity in accordance with the requirements
of the laws of the Russian Federation, corresponding state standards
and norms of technical documents for construction;</font></p>
<p><font size="2" face="Arial, Helvetica, sans-serif">· Secure Quality Control;<br>
e) System of quality control for completed work and finished products.</font></p>
</blockquote> <p><font size="2" face="Arial, Helvetica, sans-serif"><strong><br>
Special List of Documents for Applications of Branch or Representative
Offices </strong></font></p>
<p><font size="2" face="Arial, Helvetica, sans-serif">Gosstroi has developed the following special list of documents that
must accompany license applications of non-Russian entities, which have
established a branch or representative offices in Russia:</font></p>
<blockquote>
<p><font size="2" face="Arial, Helvetica, sans-serif">1. Application indicating the name, the legal form and location of the
legal entity and licensed activity, its substance and time frame during
which it shall be carried out.</font></p>
<p><font size="2" face="Arial, Helvetica, sans-serif"><br>
2. Copy of foundation documents, translated into Russian, notarized
and legalized by Russian Federation consulate authorities abroad
or apostilled
(for signatory countries of the Hague Convention of 1961):</font></p>
<blockquote>
<p><font size="2" face="Arial, Helvetica, sans-serif"> - charter;<br>
- certificate by the tax body of the foreign country on the registration
of the foreign organization as a taxpayer in the country of incorporation,
indicating the taxpayer identification number;<br>
- an excerpt from the trade register or certificate of incorporation
or other analogous document, which contains information on the body
which registered the foreign organization, the registration number,
date and
location of registration;<br>
- excerpt from the bank register or a bank reference;<br>
- a decision by an authorized body of the foreign organization on
the founding of a department in the Russian Federation (branch or
Representative
office);<br>
- powers of attorney issued by the foreign organization to the head
(manager) of the Russian department.</font></p>
</blockquote>
<p><font size="2" face="Arial, Helvetica, sans-serif"> 3. Permission to open a Representative office on the territory of
the Russian Federation, issued by the State registration chamber
under
the Russian Federation Ministry of Justice.<br>
</font></p>
<p><font size="2" face="Arial, Helvetica, sans-serif">4. A certification on the entry into the State register of representative
offices of foreign companies, which have been accredited on the territory
of the Russian Federation, issued by the State registration chamber
under the Russian Federation Ministry of Justice.<br>
</font></p>
<p><font size="2" face="Arial, Helvetica, sans-serif">5. A certificate on registration in the tax body of the Russian Federation,
indicating INN [tax-payer identification number].</font></p>
<p><font size="2" face="Arial, Helvetica, sans-serif"><br>
6. Charter of the branch (Representative office) of the foreign legal
entity, indicating:</font></p>
<p><font size="2" face="Arial, Helvetica, sans-serif"> - name of the branch and its founding organization;<br>
- legal form of the founding organization; location of the
branch (Representative office) on the territory of the Russian
Federation
and registered address
of its founding organization;<br>
- purpose of founding and types of activity of the branch
(Representative office);<br>
- composition, volume and terms of investments of capital
in the fixed assets of the branch (Representative office)
of the
foreign
legal entity
on the territory of the Russian Federation.</font></p>
<p><font size="2" face="Arial, Helvetica, sans-serif">7 Copies of documents
confirming the corresponding qualifications of the legal entity’s
workers for licensing requirements.<br>
</font></p>
<p><font size="2" face="Arial, Helvetica, sans-serif">8 Information evidencing
applicant’s right of ownership
or other legal right to the buildings and structures necessary
to
carry out the
licensed activity, indicating the title and other requisites
of the documents.<br>
</font></p>
<p><font size="2" face="Arial, Helvetica, sans-serif">9 Documents confirming payment of licensing fees.</font></p>
</blockquote> <p><font size="2" face="Arial, Helvetica, sans-serif">An extremely important issue for foreign entities to consider is that
foreign legal entities, which have not established a branch or a representative
office in Russia, are not entitled to apply for a Russian license and
as a result, cannot perform licensed activities in Russia.</font></p>
<p><font size="1" face="Arial, Helvetica, sans-serif"><br>
(173) Federal Law No. 128-FL “On Licensing Certain
Types of Activities,” August
8, 2001, last amended March 11, 2003.<br>
(174) A
revised version of the law will enter into force in January 2004. The only
substantial change is that as of 2004, the sale of electrical power to the
population
is a licensed activity. <br>
(175) Law
on Licensing, Article 3.<br>
(176) Law
on Licensing, Article 4.<br>
(177) Law
on Licensing, Article 5.<br>
(178) Law
on Licensing, Article 6.<br>
(179) Law
on Licensing, Article 7, Point 2.<br>
(180) Law
on Licensing, Article 8.<br>
(181) Law
on Licensing, Article 9, Point 1.<br>
(182) Law
on Licensing, Article 9, Point 1.<br>
(183) Law
on Licensing, Article 9, Point 3.<br>
(184) Law
on Licensing, Article 13, Points 2, 3, and 4.<br>
(185) Law
on Licensing, Article 13, Point 1.<br>
(186)Law
on Licensing, Article 13, Point 1.<br>
(187) Law
on Licensing, Article 13, Point 1.<br>
(188) State
Standard (GOST) No. 27751-88 "Reliability of Constructions and Foundations.
Principal Rules of Calculations," July 1, 1988.<br>
Law on Licensing, Article 17.<br>
(189) Russian
Federation Government Decree No. 135, February 11, 2002.<br>
(190) Regulation
on “Licensing of Design Activity of Buildings and Installations
of the First and Second Levels of the Responsibility in Accordance with State
Standard," approved by Government Decree No. 174 of the Russian Federation,
March 21, 2002 ("Regulation on Licensing"). <br>
(191) Methodical
Recommendations on Preparing Documents Necessary for Obtaining a License
by an Applicant, approved by Gosstroi Order No. 93, June 3, 2002 (“Methodical
Recommendations”).<br>
(192) Composition
of the Types of Activity for Design, Construction and Engineering Survey Licensing
Referred to the Authority of Gosstroi (the Russian Federation
Ministry for Construction), approved by the Chairman of Gosstroi of Russia
Mr. A.Zh. Shamuzafarov, October 7, 2002, enacted by Gosstroi Order No. 720,
October
8, 2002.<br>
(193)</font><font size="1"> <font face="Arial, Helvetica, sans-serif">Regulation
on Licensing, Item 4.<br>
(</font></font><font size="1" face="Arial, Helvetica, sans-serif">194) Law
on Licensing, Article 13, Point 1.</font><br>
</p>
<table width="100%" border="0">
<tr>
<td width="29%"><div align="center"><strong><font size="2" face="Arial, Helvetica, sans-serif"><a href="chapter_XVII.html">Next</a></font></strong></div></td>
<td width="36%"><div align="center"><strong><font size="2" face="Arial, Helvetica, sans-serif"><a href="chapter_XV.html">Previous</a></font></strong></div></td>
<td width="35%"><div align="center"><strong><font size="2" face="Arial, Helvetica, sans-serif"><a href="RusEnergyLaw_index.html">Table of Contents</a></font></strong></div></td>
</tr>
</table>
</td>
</tr>
<tr>
<td colspan="2">
<p><img src="../graphics/bottom_navbar.gif" width="598" height="23" usemap="#Map2" border="0"><map name="Map2">
<area shape="rect" coords="280,3,367,19" href="mailto:[email protected]">
<area shape="rect" coords="412,4,466,19" href="../subpage/links.html">
<area shape="rect" coords="512,3,561,20" href="../index.html">
<area shape="rect" coords="169,3,224,20" href="../subpage/offices.html">
<area shape="rect" coords="37,4,119,20" href="../subpage/attorneys.html"></map></p>
</td>
</tr>
<tr>
<td width="14" height="210"> </td>
<td width="583"><table width="284" border="0" cellspacing="0" cellpadding="0">
<tr>
<td> </td>
<td><img src="../graphics/footer_logo_rv.gif" width="143" height="76"></td>
</tr>
<tr>
<td> </td>
<td>
<p> <font face="Arial, Helvetica, sans-serif" size="2">815
Connecticut Ave, N.W.<br>
Suite 650 <br>
Washington, D.C. 20006-4047<br>
T: (202) 822-6100<br>
F: (202) 822-6101<br>
<a href="mailto:[email protected]">[email protected]</a></font></p>
<p> </p>
</td>
</tr>
</table>
</td>
</tr>
</table>
</body>
</html>