Assistance in share capital reduction for Public joint-stock company in Russia
Lowering the share capital of a public joint-stock company is a strategic decision that has been carefully considered. This move can assist your business in restructuring, distributing excess funds to shareholders, or streamlining its financial setup. Our comprehensive services and expert advice will support you in navigating this complex process, ensuring compliance with legal requirements and maximizing the benefits for your business.
Reduce share capital now
Begin the process of reducing the share capital of your Public Joint-Stock Company in Russia with our professional guidance. We will provide support at each step to ensure a seamless and legally sound capital reduction.
Our approach to share capital reduction
We employ various strategies to decrease the share capital of a Public joint-stock company in Russia, customized to fit the individual requirements and situation of your company. The methods we use to reduce share capital may vary depending on the circumstances, including:
Stamping shares
This technique includes decreasing the face value of current shares and decreasing the overall authorized shares in proportion. It is a simple and affordable method, but it will need approval from shareholders.
Exchanging shares
New shares are issued at a lower nominal value in exchange for existing shares, resulting in a decrease in total capital. While this approach provides more flexibility, it may be more difficult to execute.
Reducing the number of shares
Stocks are bought back from investors or eliminated, reducing the overall number and therefore the capital. This method can be advantageous for consolidating shareholders or exiting strategies.
Paying dividends
Paying out profits as dividends to shareholders diminishes the retained earnings that count towards the authorized shares of the Public joint-stock company. The extent of this reduction depends on the profits that are available and may not lead to a substantial decrease in capital.
The process of recucing share capital of ПАО and solutions
By implementing an efficient and clear equity reduction plan, we guarantee a prompt and legally sound procedure. This enables your company to enhance its financial framework and successfully reach its goals.
Assessment and planning
Our starting point is a comprehensive assessment of your company’s financial objectives and needs. Our experts offer guidance to assess the feasibility of a capital reduction and assist in selecting the optimal approach. We create a customized plan that aligns with your specific requirements, guaranteeing a defined direction moving forward.
Shareholder approval
Obtaining approval from shareholders is essential. We help coordinate the required resolutions and meetings, maintaining detailed records such as agendas, minutes, and notices. Our experts guarantee that all legal standards are fulfilled, making it easier for shareholders to give their approval smoothly and in accordance with regulations.
Legal and regulatory compliance
It is crucial to understand the legal requirements for a successful share capital reduction of a Public joint-stock company. Our team provides expert guidance to ensure compliance with share capital reduction regulations and Russian business laws. We assist in preparing the necessary resolutions and ensure precise submission to the appropriate authorities, ensuring complete adherence to regulations.
Financial and accounting considerations
It is crucial to comprehend the financial consequences. We offer detailed financial analysis and help in updating the accounting records to show the lowered share capital of the Public joint-stock company in Russia. Our firm guarantees accurate reporting and adherence to accounting regulations, protecting your financial reputation.
Share capital reduction implementation
Executing the reduction needs to be done with caution. We will help you with every stage, be it transferring assets to shareholders, issuing dividends, or buying back shares. Our team will aid in preparing the required legal documentation, coordinating communications with shareholders, and ensuring complete adherence to all legal requirements.
Post-reduction formalities
Finishing the procedure includes updating company paperwork, informing the relevant authorities, and modifying your Public joint-stock company articles of organization. We provide thorough assistance to guarantee that all necessary post-reduction formalities are completed, helping your business to stay in compliance with all legal regulations.
Tax implications of reducing capital and our assistance
Feel assured in handling the tax consequences of capital reduction with our help. We offer knowledgeable advice on equity gains tax, withholding tax, stamp duty, and transfer pricing to guarantee adherence to regulations and enhance your tax planning.
Capital gains tax
Evaluate and handle the tax consequences of reducing equity with regards to capital gains. Our team of tax professionals offer guidance, aid in calculating tax obligations, and assist in enhancing your tax approach in Russia.
Withholding tax
Be mindful of any obligations for withholding tax that may arise from the capital reduction process. We assist you in adhering to the applicable tax laws, aid you in fulfilling your responsibilities, and provide guidance on withholding tax obligations.
Stamp duty
Our staff provides guidance on stamp duty implications related to capital reduction, assists with paperwork preparation, and ensures compliance with stamp duty laws.
Transfer pricing
Analyze and address any potential impacts of the equity reduction process on transfer pricing. Besides verifying compliance with transfer pricing regulations in Russia, we offer expert guidance on transfer pricing and assist in determining arm’s length pricing.
Contact for further assistance
If you are ready to start the process of reducing share capital in Russia, contact our team of experts today. By filling out the form below, you can appoint us as your trusted partner in handling the complexities of reducing share capital, ensuring compliance, and maximizing the benefits for your business. Act now to unlock your financial potential and make strides towards success!