From where to get a farm ?
The Government is obliged to privatize all farms which remained in State-own property (former Sovchoses) until end of the year 2007 - or just liquidate them. You can buy them directly via the agricultural committees (which exist in all districts) or via the Agricultural Ministries of these areas. You can offer the purchase-price yourself. In the case of liquidation of the enterprise it might also be proceeded by a public tender and a written offer by the interested person. Prices are low and the one who refers to a consultant, should consider, that the consultant indeed is informed about the real market-prices in Russia.
As a foreigner, you only buy the constructions and the building land. It is more useful to buy a bad building for a little money and then to erect new facilities. This is by far more advantageous, than to buy excellent buildings at unreal prices.
Farmland is leased directly from the State.
This is an additional reason why to cooperate with the agricultural committee, since the committee is responsible for leasing out the farmland and has no interest to promise land, where in reality there is none.
But there is enough farmland available and there is no problem to lease several 1.000 acres. The Russian Government has interest in protecting agricultural land against being wooded again and especially western European farmers are reputated to know about agriculture and to labour themselves too, contrary to Russian investors. In whichever juridical condition you buy the enterprise, incorporate it into an own company founded by you. By this you avoid inherited problems.
Of course you can also buy a farm from the Government, included its inventory, but it is admitted that most times the prices by far to high. Only you as a western European will think, that the price is advantageous. Most offers of enterprises in activity, you must admit that the prices are by over 50 % overpriced.
When acquiring an enterprise an audit is indispensable! Such an audit most times considerably reduces the price of purchase. If ever one refuses the audit or refuses to show all accounting documents, so keep in mind: hands off ! !
Insist, that a plan of budget and investments will locally be established for you. Insist, that the figures are real and that no figures are pushed up. The plans have to be real.
Some western European States (among others also Switzerland) will give Start-up credits, generally with the same amount of your own investment-capital. Those who are not obliged to refer to credits better should take the hands off. Credits are expensive, credit-contracts are established in a way, that you may consider them as dubious. So, hands off !
Last, but not least, Russian contracts, for being valid, must absolutely be made out in two languages, if the contract-partner is a foreigner. The contract must be written on the left side in Russian and on the right side in a corresponding language.
My members of staff
Responsible for all administrative tasks, staff, accounting, taxes, marketing, discussions with the administration, etc. is a Swiss business manager, who is living in Eastern Europe since 14 years and who is also lecturer at different Russian universities, where in Moscow she holds seminars. Beside of German, English and French, she also speaks Bulgarian und Russian. She perfectly knows about customs and uses of the country and has no problems to communicate with Ministries. Nearly in all domains she disposes about indispensable contacts and specialists.
A young legal adviser, aged 25, cares about the creation of companies, to make out contracts, special legal advises. He was student at our administrative management. He is rapid, reliable and serious.
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