How to establish LLP

Prior to registration of LLP, founders draw up an incorporation contract, approve statute and if necessary determine assets for inclusion into authorized capital.

Incorporation contract

If LLP is founded by a sole participant than there is no necessity to draw up an incorporation contract.

If LLP is founded by several individuals than incorporation contract is concluded in written form and signed by each founder or his/her representative and notarized.

Statute

After that, the charter is approved, a document that defines the legal status of the LLP as a legal entity, while the charter is not provided to the registration authority during state registration.

LLP related to entity of small/ medium/large business can perform its activities based on standard statute after submission of relevant application.    

Statute is required to open a bank account, participate in public procurement and obtain public services.

Authorized capital

For small businesses, the size of the authorized capital is zero at the time of creation of the legal entity.

Authorized capital of entities of medium and large businesses is generated through incorporation of founders` (participants`) assets.     

Initial amount of authorized capital is equated to the sum of founders` assets and cannot be less than a sum equivalent to 100 MCI to the date of documents submission. 

Assets to authorized capital can be as follows: money, securities, items, property rights, including right for land utilization and right for the results of intellectual activities and other property. If the sum of such asset exceeds the sum equivalent to 20 000 MCI, an evaluation should be approved by an assessor.