Interim management in Russia
Any legal entity in Russia must have a sole executive body to represent the company and act on its behalf. The sole executive body can either be a general director (an individual) or a management company (a legal entity) that is acting as the general director.
The sole executive body acts on behalf of the company without power of attorney, manages the company in its interests and performs transactions and exercises other powers as set out in the articles of association.
The services of interim management in Russia offered by KBK Accounting involve the temporary use of our company as a management company or our employee as the CEO. If your business does not have a separate legal entity in Russia (e.g. there is a branch or a separate subdivision), under the interim management service an employee of KBK Accounting can take over the head position of such businesses in Russia.
Interim management has several advantages for your business in Russia:
- Time saving: it allows to avoid additional costs, as the search for a suitable candidate for the CEO position can be complex and time-consuming. Additional time may be needed if such a candidate is a foreign individual and hiring requires additional documents such as visas and work permits. With the use of interim management you can set up a company and start operations immediately, while organizing the search for a suitable candidate;
- Cost reduction: using interim management in Russia allows you to open a company to assess the correctness of your business model, confirm demand and for any other purposes, while saving on the costs associated with hiring a CEO when the volume of the activities does not provide a full load for this position. In addition, in the event that the company’s activities need to be suspended for any reason, interim management services are more flexible in ‘adjusting’ to new circumstances;
- Full transparency: interim management allows you to avoid the risk of a complete transfer of powers. The CEO can act on behalf of the company without power of attorney and use any company’s assets (even if such powers are limited by the articles of association). The use of interim management services of KBK Accounting in Russia helps you to avoid the risks associated with entrusting such powers to CEO. At the same time, potential candidates for the CEO position can be recruited for other managerial positions (e.g. commercial director) to assess their competence and professional efficiency;
- Compliance with HQ guidelines: you avoid the risk of conflict of interest. When providing interim management services in Russia, KBK Accounting does not make any management decisions and acts according to the instructions of the HQ. All our actions are coordinated with the client in advance, thus avoiding situations where local management, acting in their interest, makes decisions that contradict the policies of the head office;
- Additional control: even if the company already has a general manager, the use of interim management of KBK Accounting in Russia might be advisable to fulfill the “four eyes” principle and implement additional control and compliance requirements, especially when it comes to signing contracts and bank transactions;
- Additional synergy: the simultaneous use of KBK Accounting services for accounting and interim management in Russia allows you to get all the services you need in one place, reducing the chain of communication. At the same time KBK Accounting will have the whole picture of your business (both on the accounting and management side), minimizing any risks of misrepresentation to the head office.
KBK Accounting, by providing interim management services in Russia, acts as your official representative in communication with local counterparties and authorities. We have extensive experience in providing interim management services and would be happy to discuss the details of our cooperation with you.