Competences of an Interim Manager
Who is going to be the general director of the Russian company? This question is often central when entering the Russian market. The takeover of the functions of the general director of the Russian company is not only connected to the question of “Who is the most competent person for this job?”, but also to the question “Who is trustworthy enough to have control over our company and the bank accounts which are connected to this?” Especially at the beginning of business operations in Russia, the financial situation must be controlled and the huge bureaucratic and organizational hurdle has to be tackled, which is known to be very time-consuming in Russia. Therefore, a general director in Russia is needed as these issues cannot be managed from Germany. What are the options to approach these questions?
A Russian citizen is hired as the general director – for instance a trustworthy and long-term business partner. Ideally this person has already experience as a general director of a Russian OOO and of course a clean slate. Be aware of the fact that this person must be fully trustworthy because he will have the power over the company as a whole, including all the bank accounts. The practical experience unfortunately shows misuse in this field again and again so that we recommend our clients to cover themselves against such risks. The services of an interim manager might be such a protection.
A German employee of the parent company is hired as a so-called highly-qualified specialist (VKS). Due to the fact that this employee is a foreigner who needs a working permit in order to work in Russia, this person cannot function as the general director at the foundation of the company. First the Russian OOO has to be founded until the foreign employee can be officially invited to Russia. On this basis the working permit and the working visa for the German general director can be made out. During the time between the foundation of the company and the issuing of the working permit, an interim manager must overtake the functions of the general director. Another aspect has to be taken into consideration when hiring a VKS is his minimum salary. According to the law, a foreign employee must earn at least 167,000 RUB gross monthly in order to be considered a VKS.
An interim manager is hired as the general director. Thus the control over the Russian OOO can be obtained and the transitional period can be bridged until the working permit for a highly-qualified specialist is made out. Another option would be to hire the interim manager permanently as a second general director. This four-eyes-system not only creates another control authority on all levels, including bank, but also discharges the actual general director from a lot of bureaucratic and administrative work. Another advantage of this solution with the interim manager is that a second general director is present in Russia. When the first general director cannot be in Russia permanently, thus the interim manager can take the responsibilities of the general director.
If you have any questions regarding the interim or establishment of a limited company in Russia, please do not hesitate to contact us for further information. We are pleased to provide you with an offer for the performance of an interim manager in Russia..
Your contact is German lawyer Juri Semiletopulo (German, English, Russian). Just contact us by email or phone.
Tel.: +49 215 51 061
Tel.: +7 495 151 21 15