In the Russian legislation two forms of a corporation exist. The public limited company (“PAO“) and not a public limited company (“AO“).
Closed Joint Stock Company is distinguished by the fact that the shares are only shared among the shareholders or in advance certain shareholders (max. 50) are distributed and therefore also paid dividends. Moreover, there is no obligation to publish the balance sheets. The partners and shareholders have a right of first refusal to the shares offered by other shareholders and shareholders.
By public Joint Stock Company is the number of shareholders unlimited and there is the obligation to publish the balance sheet.
The establishment process of JSC differs only in a few details of the creation process of OOO in Russia. The main difference is the registration of the share issue by the Central Bank of the Russian Federation.
Within the next 30 days after the application to issue shares, the Central Bank of the Russian Federation announces its decision. It can perform the following decisions:
- Interruption of the share issue of obvious error, correct them is required;
- Authorization to issue shares, and you receive:
– Notification of state registration of the share issue;
– Decision on the share issue with the registration notice and registration number in duplicate;
– Report on the share issue with the registration inscriptions in duplicate.
- Decision rejecting the request for the share issue due to errors or late submission of the required documents.