How We Structured a
Our client, Jack from the United States, approached us seeking to enter the Russian automotive market. Following the withdrawal of official dealerships and the resulting shortage of vehicles, this sector presented significant commercial potential.
Upon entering the Russian market, Jack faced several challenges. First, as a citizen of an «unfriendly» jurisdiction under Russian regulations, he would bewas restricted in his ability to receive income within Russia. Second, the disconnection of Russian banks from SWIFT made international transactions difficult.
To address these issues, GK Legal developed a tailored corporate structure. We established a parent company in Kazakhstan and then created a Russian subsidiary, registering domain names and trademarks under its name. For banking services, we selected a subsidiary of a major Kazakh bank, which minimized international transaction fees.
In addition, Kazakhstan’s membership in the Eurasian Economic Union (EAEU) allowed our client to avoid double taxation and to distribute profits without them being blocked in special «Type C» accounts, as would occur in Russia.
Later, we assisted the Russian subsidiary in leasing showroom premises and drafted all operational legal documents — including vehicle sales contracts, customs documentation, and employment agreements.
Since 2023, Jack’s company has successfully operated in Russia, generating annual profits exceeding USD 4 million.
