marketing

The marketing essay below has been submitted to us by a student in order to help you with your studies.

Joint venture of Russia and Canada

The country that we chose is Russia which is going to have a joint venture with Canada. For example, A Canadian automotive supplier, Magna established a joint venture with Russia, Russian Machines, which manages engineering assets of Russian industrial holding Basic Element, including automaker GAZ, who would produce auto parts in Russia with Canada's Magna. Russian Machine Systems, a wholly owned Russian Machines, signed an agreement May 23, 2007 with the Canadian automotive supplier Magna to establish a joint venture in the city of Nizhny Novgorod in the third latter part of 2007 to manufacture auto components. [1] Magna is going to provide the Russian automobile industry with premium components corresponding to world standards. This agreement is the step towards having the presence of Canadian companies in Russia. This gives the opportunity to expand the growth sales in Russia as well.

Magna and the Russian Machines have a joint venture with each other because they want to find that if their technology or automobile parts are complementary for specific large projects. Also, the other reason they have a joint venture is because they obviously want to have the presence of the company Magna in Russia. By having a joint venture they’re contributing to the world’s economy greatly.

Canadian Assistance Programs

Travelling Documentation:

First of all to start with, every foreigner needs a visa to enter the country. To get a Russian visa, you will need to get a visa invitation letter from Russia. Once you get the visa invitation then you will need to take it to the Russian embassy where your passport was issued. This visa process can take up to 25 to 30 days. The visa you will need to get is a business visa. They are valid from 90 to 180 days. To be up to date, you should clarify with the Russian embassy for any changes that have occurred. When you reach the Russian border, you will be asked to fill out a migration card and then you should register with the immigration authorities within 3 days after coming to Russia. If you change your residence then you must register within 3 days after arriving at where you’re going to stay. You should keep you passport, visa and other immigration documents with you at all times.

Travelers should get receipts for all items purchased in Russia. If you don’t keep the receipts then the Russian police are allowed to check your bags and suitcases. In Russia, payment for all goods and services is to be made in the national currency or by credit card. In some of the local markets CAD is accepted. There are many currency exchange offices in Russia. They often operate 24 hours and their exchange rates are usually posted outside. Credit cards are the ones that are being commonly used these days in Russia, so having one wouldn’t be a bad idea. There are ATM machines but they’re not reliable because there have been several incidents involving money being stolen. Due to the large commission of tax on their purchase and difficulties in cashing traveller’s cheques, recommend against their use.

Business climate:

There has been lot of improvements in the Russian environment and those changes can be seen as they are evident. The crisis that happened in 2009 has made them stronger mentally and they have implemented more reforms. The tax system has become fairer and Russia Customs have improved as well. There are number of hazards that still exist such as the investors are scared because of the corruption. These factors contribute to the people who want to do business with Russia. They are trying to improve it. The access to financial resources and developments of products can be a major problem to businesses but they still have financial facilities. Also, they’re trying to focus on the innovation sector for a better future.

Business Etiquette:

Toasts with vodka, champagne or wine are common and may be offered almost anytime during the day. In an office, an employee or a Russian boss can ask for a drink, but may not drink it. The guest can raise a toast after a short break to allow other guests to have a bite to eat.

Give only an uneven number of flowers if you’re going to a party but not on funerals. There are some more restrictions we have to look at when doing business with Russia such as:

Never light a cigarette from a candle

Never pour win back handed

Do not whistle indoors

Avoid pointing at people

Do not use thumbs up

Business Etiquette:

Be formal in your wearing and talking. A woman can wear skirts rather than pants as it seems much more professional to them. Act professional every time when interacting with them. If you’re meeting for the first time then the introduction should be respectful and business cards can be exchanged at the end of the conversation. If we go to a meeting in Russian business, the same level of people should be there meaning at the same post. If there is Vice President from any company then there has to be a Vice President from the other company as well. The handshake is primarily used both on meeting and even when leaving. Do not stand with you hands in your pockets as it is considered rude. We as Canadians are expected to be on time but your Russian partner can be late but don’t expect an apology from him.

Canadian Regulations/laws and Business Registration and Incorporation:

There are certain requirements and regulations that we have to follow before taking our business international to Russia. The regulations are quite simple and should be followed to operate the business successfully:

The first step for any business is to get a name in Canada. The right name can be an effective advertising tool that can help your customers understand what your business does and the market you are targeting. Name is needed for every business because you’re customers can know what they’re buying.

Legal Element:

The accepted way to include a legal element in a corporate name is to add a term to the end of the name such as Limited, Incorporated or Corporation.

The most important part of a getting a name for our business is through NUANS (NUANS name search system). It helps us find the name that hasn’t been taken already and gives us the most appropriate name for our business. NUANS report is to be bought by the business which has to Canada based. We can get the NUANS in two ways. Firstly, we can order it online. It costs us $20. The NUANS report is valid for 90 days. If you do not submit your application for incorporation within that period, you must get a new report. We can submit the proposed name for incorporation with the application or by fax, for the approval of the name.

Register our business name:

We can complete by registering our businesses name through:

Through Service Ontario’s website

In person at Service Ontario centre

By mailing an application to the address

The cost of registering our business ranges from $60 to $80. Our registration is valid for five years, so it means after 5 years it must be renewed.

Registering your business:

We are a new business setting up to take our company internationally and to do that we must let the government know every action we take so there are no problems. We have to choose a business structure and in this case it’s the Corporation form, we are choosing and some of the advantages and disadvantages of Corporation form of business are:

Corporations:

For establishing a global presence we must first incorporate our business. When you incorporate your business, it is considered to be a legal entity that is separate from the owners and shareholders. As a shareholder of a corporation, you’re not the only one who will responsible for the debts or acts of the incorporation.

Advantages:

limited liability

ownership is transferable

continuous existence

separate legal entity

easier to raise capital

possible tax advantage as taxes may be lower for an incorporated business

Disadvantages:

a corporation is closely regulated

more expensive to incorporate than a partnership or sole proprietorship

extensive corporate records required, including shareholder and director meetings, and documentation filed annually with the government

possible conflict between shareholders and directors

possible problem with residency of directors, if they are in another province or the majority are not Canadian [2] 

As you can see the advantages and disadvantages this form can have. To summarize so far, we have to first register our name and choose a business form which comes under business registration. After that comes the crucial step which, obviously has to be followed. That step is called Business Number.

Business Number:

Our business number is a nine digit number that our federal government recognizes with. We can open several accounts for our business through registration. Those accounts can be:

GST/HST

Payroll Deductions

Corporate income tax

Import/export

Business Registration in Russia:

Now after we have established or have fulfilled all the needs by the business government listed above, then we need to open a branch in Russia because our head office or headquarters is in Canada. To open a branch in Russia, there are certain requirements. The business needs to register with the authorities. It involves lot of local authorities and there are steps in order to make a branch which can thereafter perform a joint venture with any company from Canada.

A foreign company or legal entity has to register with the tax authorities so it can obviously have a presence in Russia. Each foreign entity is responsible for its own tax.

The fee for registration for a branch is RUB 60,000 and increases depending on the registration period which can extend up to 3 years. The fees altogether for collecting documents and giving it to the authorities can take up to RUB 350,000 to RUB 400,000.

It normally takes up to 3 to 6 weeks. There are lot of documents that have to be given to the authorities and as a result it can actually increase the time period.

Financial Institutions in Canada:

There are several agencies in Canada that deal with financing facilities available to help foreign and domestic companies. They have trust and loan companies and credit unions. Also, pension plans are offered. Some banks that offer loan and capital to their clients and business are:

Bank of Canada

Canada Deposit Insurance Corporation

Canadian Savings Bonds

Financial Consumer Agency of Canada

Financial Transaction and Reports Analysis Centre of Canada

Royal Bank of Canada:

RBC Capital Markets provides financial services for clients who are looking to invest and debt financing and also management services. By offering management services, the business can do better internationally because it has done some management training and knows how to operate the business internationally better than other countries. RBC Global Services is a provider of transaction processing services. If a business from Russia has a joint venture with Canada with automotive parts, it can be offered in this bank for solutions, cash management, payments and trade finance

Canadian Deposit Insurance Corporation:

CDIC helps insure keep the insurance in the banks. It will keep your savings protected and secure. This helps to keep the Canadian financial system strong, which benefits all Canadians and businesses from Russia as well.

Business Development Bank of Canada:

BDC can help us in many ways such as long term financing, consulting services, and help you take an innovative start. Some of the advantages of taking help from BDC are:

Advantages of doing business with BDC:

Up to $100,000 in financing

Up to a 6 year repayment period

Progressive or seasonal repayment options tailored to your business' cash flow;

Possibility of capital payment

Guaranteed term: financing cannot be recalled without due cause

Your choice of floating or fixed interest rates

Fast-track, no penalty repayment options up to 15% of remaining balance per year. [3] 

Financing facilities available in Russia:

Banking market:

The Russian banking sector has developed rapidly in recent years. This shows that the Russian economy currently is strong. The banking services offered in Russia are strong which increases financial awareness. There was a financial crisis which had impacted the Russian market heavily. The main bank in Russia which is the Central Bank of Russia, net profits decreased to RUB 96.4 million and compared to the net profits in 2009 which was RUB 314million [4] . That showed a decrease in the economy of Russia.

Federal Services for Financial Markets:

The FSFM’s aim is to help the investors looking to invest in every way possible. Investor become attracted to it as it offers very good service. There is little risk which is better for the people looking to seek help in financial matters. It regulates the activities of financial market players and establishes the conditions for issuing and trading securities.

Commercial Banks:

The commercial banks have been developing faster than before and have been the best sector for investment by companies who are looking to invest here. Foreign companies can invest in these banks with little risks. The financial crisis had an impact on it but still maintained to stay up to the market. The government support is high and Canadian companies who are looking to invest can do so freely. Over 2 trillion RUB was provided by the commercial banks and the loan can be taken by companies or individuals. Also, the bank makes it resources available for foreign and domestic companies but one of the problems it’s facing is the loan. There had been lot of debt owed which was not given of about 1043.4 billion RUB of which the top 20 banks account for 64%. [5] Other than that, it is really good and has been good from the past.

Loans Funding:

A Canadian company can borrow from a bank by overdraft which is probably the simplest form of external funding. In overdraft, credit is given by banks to the customer with a bank account agreement. The money borrowed from a bank can be restricted depending on how much you borrow.

Licensing requirements and restrictions:

We need a license, which will act as an official documents and it allows a type of activity to take place within in a period of time. A license is an official document, which allows a particular type of activity, carried out within a period of time. There are licence regulations that are in place for health issues and rights. The license could be used up to 5 years and after that it expires. For example, If you have applied for an automobile import license in Russia, then there are chances of it being granted or not. They are going to provide you with a letter which states that if you have been granted or denied the licence. This is done in 45 days. If they denied you the license then they can say the following:

Documents contain unreliable or misstated information

Applicant doesn’t comply with licensing requirements and conditions

Licensing requirements and conditions

If you want to receive a license to carry out some activities then there are different requirements or restrictions that you have to look at:

requirements of the proper education, passing the qualifying examination, training on probation, specialized training, career progressive program, academic degree, specialists' certificate;

proper experience;

prohibition of positions overlapping;

proper business reputation;

lack of bankruptcy proceedings over a stipulated period of time;

requirement to be current on taxes;

requirement of proper resources;

lack of dismissal on discreditable basis;

lack of convictions;

health status;

citizenship;

Residence. [6] 

The licensing of certain types of activities that can be imported in to Russia is different. Some of the items include:

aeronautical engineering;

production and repair of aircraft equipment;

operation of explosive, inflammable and chemically hazardous production facilities;

expertise of industrial safety;

tunnel survey;

geodesic and cartographic activity;

production of medical technology;

Production and repair of measuring equipment, etc.

trade in arms, bodies of fire-arms and practice cartridges;

exhibition and collecting of arms, bodies of fire-arms and practice

cartridges;

organization of employment of Russian citizens abroad;

medical and pharmaceutical activity;

activity connected with the use of infection agents;

carriage by air, sea, inland water, automobile and railway transport;

collection, use, processing, transportation and disposal of hazardous wastes;

organization and carrying out gambling games;

storing-up, processing and realization of nonferrous and iron-and-steel scrap;

activity of investment funds and occupational schemes;

space activities;

Sale of electric energy for natural persons and some others. [7] 

These items on the top are some of them that require licensing when you want to do business in Russia. For example, if you want to export automobiles to do business with Russia then it requires a registration process in Russia. The registration process for car shipping in Russia depends on whether the dealer has been importing cars into the country for a period of six months, or for a period longer than six months. The registration would have to be done with the Russian customs department. When you’re registering the car, you will receive a document known as UVTS (Vehicle’s Import Acknowledgement Certificate), that allows you to use the imported vehicle in the country.

Tariffs-Customs:

Canadian Customs:

You need to get clear of the Canadian customs first. The following sector of goods may, if the goods are not restricted goods, be exported.

personal and household effects, other than those of an emigrant, that are not for resale or commercial use;

commercial goods having a value of less than $2,000 Canadian;

conveyances that would, if they were imported, be classified at the time of importation under tariff item

Goods that are exported by a customs service provider have to be reported by the customs service provider at an export reporting office before the goods leave Canada.

Russian Customs:

In Russia, they use the Russian Customs Code which determines the customs when importing goods from Canada or any other country. There are numerous customs payments that have to be made such as:

Import customs duty

VAT payable when importing the goods to the customs territory of the Russian Federation

Excise duty

The following custom fess should in the mind as they are important:

Custom fees for the customs execution(should be paid when declaring the goods)

Custom fees for the customs accompaniment

Custom fees for the custom storage [8] 

Custom Regulations:

The custom duty is calculated by weight, volume or quantity. Some duties have a combined rate for two items. Zero duty applies to the equipment and machinery imported. Duty rates are between 5% and 20% of the customs value of goods. There are some goods that don’t have custom duty such as the transit goods and goods imported by individuals for personal use. The personal use goods have to be under RUB 1500 and less than 35 kg. The transport and the humans involved are also free. Russia has also lowered some prices on some areas of customs. Lowering customs duty on technological equipment imports, making the customs clearance process easier and faster, and tighter customs control after the customs clearance of goods are some areas that they have addressed to help the companies looking to do business in Russia. Customs processing fees are from EUR 1200 to EUR 2,400 per customs declaration depending on the customs value of imported goods. If we are importing car as our business specializes in importing cars to start a joint venture in Russia then custom duty payable tens to be higher. Modifications have been added to the custom duties while calculating the custom fees. If you’re going to ship a car to Russia, you have to pay a minimum of 25% in taxes in the form of import tax. This payment is done at the custom clearance point.

Custom Registration:

There is custom registration which has to be carried out before continuing and these requirements are by custom authorities in Russia and the requirements are inside the custom codes which ensure that you’re not violating them. The method of custom registration depends on the goods you’re business is exporting to the custom border. This is done with any country that is exporting the goods. Russian custom regulations need to look at list of documents for custom clearance. The documents may depend on the goods you’re importing to Russia. They’re going to provide you with the documents that you required when you’re dealing with the customs. If there are goods that are not cleared by the custom control then you can store them at warehouses before being released by the customs. It shouldn’t go beyond two months but you can extend it for four months. There are numerous warehouses near the custom offices in Russia.

Agreements-multilateral or/and bilateral:

Canada and Russia serve a bilateral agreement and there are numerous trade agreements that both countries are dependent on. These two countries are interested in each others trading of goods. They are signing agreements to help each other gain market access and by providing business with relevant information. They will keep on giving information to each other and opportunities that exist in both countries.

Canada has the following trade agreements with Russia:

Fipa- This bilateral FIPA will enhance Canadian investors’ confidence when considering investment opportunities in Russia. FIPA is an IEEE Computer Society standards organization that promotes agent-based technology and the interoperability of its standards with other technologies.

Trade and Commerce-

Capital Goods and Service deliveries-

Economic cooperation- Canada and Russia help each others economy and they do that by addressing economic issues of concern. The economic cooperation can be evident through these facts that can take place.

Enhance cooperation between Canada, as host of the 2010 Vancouver Winter Olympics Games, and Russia, in the preparation and planning of 2014 Sochi Winter Olympic Games;

Have discussion on updating the 1989 Canada and Russia Foreign Investment protection and promotion agreement.

Work closely together on the development of trade in natural gas and investment in the energy sectors pursuant to the Joint Statement on Canada-Russia Energy Cooperation

Promote cooperation between their aviation industries

Expand cooperation in research and use of space

Also, they want to have better nuclear cooperation through an addition agreement on nuclear cooperation in the uses of nuclear energy and trade of uranium.

Consult on the reconciliation of bilateral trade statistics.

Double Taxation:

Air Services:

Recently, we have enhanced our bilateral relations with Russia through:

Canada-Russia Business Summit (Ottawa)

Joint Leaders’ Statement on Canada-Russia Economic Cooperation

Canada-Russia Joint Statement on Economic Cooperation

Canada-Russia Memorandum of Understanding on Fisheries Cooperation

Canada-Russia Joint Statement on Agricultural Cooperation

Declaration of intent to Cooperate on food Safety, Animal and Plant Health

Memorandum of Understanding on Arctic Cooperation

Memorandum of Understanding on Nuclear Cooperation [9] 

This illustration above indicates and shows us how Canada and Russia trade in terms of merchandise and services. The agreements signed above indicate to the fact that they are getting in touch and contributing to the world’s economy as well.

Cultural Influences and Language requirements:

The official language spoken in Russia is called “Russian”. The most spoken foreign language in business is spoken in English. In some major hotels and restaurants in Russia, it can be hard at times to communicate in foreign languages, but they have help for those types of people with difficulties. A lot of business people know foreign languages and also have staff members who can act as an interpreter. You can hire a translator from translation bureaus. If you’re having problems finding a translator then they could be easily found on a list of local services providers, an internet would be useful at that time.

Today, 97% of the public school students of Russia receive their education only or mostly in Russian, even though Russia is made up of approximately 80% ethnic Russians. [10] 

Main foreign languages:

15% have foreign language knowledge

English (80% out of all foreign language speakers)

German (16%)

French (4%)

Turkish (2%)

Russian culture is from the country, Russia and with ethnic Russians. It is an expert art nation, especially when it comes to literature and philosophy, classical music and ballet architecture and painting, cinema and animation, which all had influence on the world culture. The country also has a rich material culture and a strong tradition in technology.

There are over 160 different ethnic groups and in Russia. Ethnic Russians with their Slavic Orthodox traditions, Tatars and Bashkirs with their Turkic Muslim culture, Buddhist nomadic Buryats and Kalmyks, Shamanistic peoples of the Extreme North and Siberia, highlanders of the Northern Caucasus, Finno-Ugric [11] Peoples of the Russian North West and Volga Region all contribute to the cultural diversity of the country.

Russia's large number of ethnic groups has distinctive traditions of folk music. Typical ethnic Russian musical instruments are gusli, balalaika, zhaleika and garmoshka. Folk music has great influence on Russian classical composers, and in modern times it helps other folk bands learn. It motivates them as well as patriotic Soviet songs. Russians have many traditions, including the washing in banya, a hot steam bath somewhat similar to sauna Old Russian folklore takes its roots in the pagan Slavic religion [12] .

Collectivists: Collectivistic cultures, such as Russia, are interdependent. Russians tend to make physical contact and take away the other person’s place. They are very open to the conversations when they interact with people.

Egalitarianism: A person who believes in the equality of all the people. Russians are very status conscious and believe in equality. They believe that benefit should be equally shared.

Dusha: The dusha is another name for soul. Soul remains central to everyday Russian behaviour and as a result when building successful business relationships with Russians you will find that emotion will be a strong basis.

Taxes and Duties:

Tax legislation and all the taxes that can come in to play are an important role in for any business trying to start in Russia. We should be aware of any taxes that are in Russia, so we don’t have any problems later on.

Taxes:

Income Tax Corporate-20%

Corporate Income Tax is the major tax on business income.

profits from the sale of goods and the supply of services which is calculated as the difference between sales revenues and directly and indirectly related expenses

revenue in kind from the sale of goods or the supply of services; or from property rights

profits from non-sales transactions make up of lease payments, dividends received from other companies, interest on bonds, royalties, compensation received for losses, less any non-sales expenses

Value Added Tax (VAT):

The standard VAT rate is 18%. This rate applies to all goods and services that do not qualify for another rate. A reduced rate of 10% VAT applies to some food, medical and children’s goods. All supplies of goods, works and services in Russia are comprised with the Value Added Tax. Goods imported to Russia, construction work, and transfers of property rights and goods for own needs are also VAT. [13] 

Import VAT

Goods that are imported into Russia are also VAT. Import VAT is recoverable if the VAT recovery requirements are met. Foreign companies in Canada that are not tax registered in Russia can’t recover import VAT.

The revenue that comes from your business like when you supply goods or do services or even whatever your business specialized and also from the import of goods, the VAT is subject to it.

VAT is imposed in Russia if the products or services are used in Russia

exemptions are granted for exported goods or services used outside Russia

VAT is imposed on imports or services used in Russia

Profit Tax in Russia:

The people who pay the tax are foreign companies that do their activity and receive profits in the Russian Federation are subject to Profit Tax. When you perform services and any other kind of activity involved in giving you income on the territory of Russia are subject to Profit Tax.

Rates for profits tax in Russia:

There in the range of 24& in general tax rate and 20% applies to income from foreign companies activities established in Russia. 15% tax rate is if a foreign company has profits in the form of dividends if it takes participation in a Russian legal entity. 10% tax rate applies for the income from use, maintenance, lease of ships, planes and any other international carriage.

Assets Tax:

Assets tax is one of the important taxes and is implemented for every company almost. If a foreign companies, branch or representative office has its assets in Russia; it would then have to pay assets tax. The legislative body of each region has the final tax rate, but can’t later exceed 2% of the original tax.

The minimum size of assets tax rate will not exceed 2.2%. [14] 

If a representative office that don’t do any activity in the territory of Russia, will not have to pay asset tax on the assets/property other than real estate it owns.

Unified Social Tax:

The definition which is associated with Unified Social Tax is that it combines previously separate contributions to Pension Fund, Social Security Fund and medical insurance. [15] UST is not for employer to employee payments for profit tax purposes and non deductible payments like charity. Annual income up to 280,000 roubles is taxed at 26% Marginal rate for income above 600,000 roubles is 2 percent.

Personal Income Tax:

Any foreign citizen or someone who is part of a company has to pay tax if he is in

the Russian federation for not less than 183 days of the year. The tax rates for personal income tax are the following:

13% - on income received by tax residents,

30% - on income received by tax non-residents on the territory of the Russian Federation,

35% - on certain kinds of income,

6% - on income in the form of dividends. [16] 

Topic: Transportation – international and domestic (freight, shipping, insurance, cost- FOB or CIF):

There are many airlines that fly to Russia, and other provinces that are located there. Some airlines that go there would be Aeroflot, Siberia, Transaero, and also the Rossiya Airlines. The travellers or business people that go from here are supposed to request the hotel management to send a driver to meet them at the airport. The people that serve you there should, be registered guys and not just strangers of the streets. Canadians that go from there should be reminded to check the currency rate, and to negotiate the price of the taxi before getting in, because you wouldn’t want to get into an argument with them.

Domestic Transportation:

Russia has one of the longest rail transportation routes in the world, connecting larger cities with small towns and villages within the country. Although rail service is reliable, it tends to be quite slow. Russia is a big country and as a result the railroads show prominence which covers the vast distances. Cargo traffic is the use of railroads, in contrast to the passenger traffic in West European railroad systems. This shows a heavy emphasis on industry and production rather than on consumers. In 1992 Russia's railroads accounted for 253,000 passenger-kilometres, and by 1994 the total had dropped to 227,000 passenger-kilometers. [17] If there is less goods and doesn’t have to be taken far away, then the rail road can be replaces by trucks. While travelling by train, it is better if you store your expensive belongings in a safe place and not where nobody’s looking. The door should be secured from the inside. The buses that operate within the city are also available and are not expensive. Russian language is required if travelling by rail or road. You should be cautious when travelling by train at night.

Water Transportation:

Maritime transportation is a way for transportation through water. It’s important for Russian transit, but the country climate limits the shipping process. Many Russian rivers run from south to north rather than from east to west, which stops them for their use during the Russian winters. Navigable inland waterways extend 101,000 kilometres, of which 16,900 kilometres are man-made and 60,400 are navigable at night. Boats of the Russian River Fleet do most of the inland shipping, which accounted for 514 million tons of cargo in 1991 [18] .

The urban transit in Russia is well developed and in large cities, the metro which is called subway in Canada is an easy and reliable way to travel. Multiple-fare cards can be bought at the cash windows located in station entrances. The metro operates from 6:00 am to 1:00 am daily. Signs at the entrance to the platform tell you the the names of the next stop but having a metro map wouldn’t be bad idea if you’re new to the country.

Licensed taxis are available in major cities and fares are low. Most hotels can also provide a driver service. It is common for Russians to get private cars and negotiate fares, but you shouldn’t do this if you’re Canadian.

In Russia, the pedestrians never have the right of way which is obviously the opposite in Canada. Drivers go fast and the pedestrians normally stay on the roads then the sidewalk. Busy streets often have underpasses where pedestrians can cross safely.

Example of services offered in Canada:

CIS NAVIGATION

CIS Navigation offers the only all water direct liner service to/from St. Petersburg, Russia from/to Halifax, in a six multi-purpose ship string with a combined carrying capacity of 75,000 metric tons. The size of the fleet allows the handling of, project, over-sized, hazardous and container cargoes.

It offers:

Deep Sea Freight Transportation

Coastal and Great Lakes Freight Transportation

Port and Harbor Operations

Marine Cargo Handling

Freight Transportation Arrangement

Navigational Services to Shipping

Other Support Activities for Water Transportation

Auto Car Shippers:

Container shipping.

This is one of the methods that auto car shippers use and it is safe secure and inside the container. All vehicles securely blocked and tied down which shows security.

RORO Shipping

This is the second method and it is the simplest and cheapest method of shipping because vehicles are driven directly into the RORO vessel and secured to the car decks. This is the simplest and cheapest method of shipping. Vehicles are driven directly into the RORO vessel and secured to the car decks; securely inside the vessel, wind-and-watertight. They allow you to ship extra tires in this method as well.

Shipping Costs:

Low cost International shipment services to Russia.

Rate per cubic foot starts at:

Moscow - $13

St. Petersberg - $13

Minimum shipping rates start at: $508

Travelling by Air:

Paved Runways:

There are a total of 630 useable runways. About 54 runways are under 3047 meters, 202 range from 2438 to 3047, 108 are for 1524 to 2437, 914 to 1523 are 115 runways and 15 of them are under 914 meters.

Labour

Additional Information:

Crimes:

Crime against foreigners is a serious problem. Harassment and attacks on foreigners are done. Some victims have died in the attacks. An increase in these attacks is noticeable around April 20 and November 4 of every year. Canadians should take care of themselves as it is quite dangerous to walk freely around open markets at those times of the year.

Health Entry Requirements:

Any Canadian businessman who wants to do business in Russia must have a medical certificate before coming because it outlines if you have HIV. The certificate must:

The passport which outlines full name, date of birth, passport number, and country of residence.

HIV test information (date of test, test results, and signatures of the doctor who performed the test and the person examined);

You should also show how long you are going to stay in Russia

It should be valid from three months from the date of testing.

Additional Health Information:

Incident of Rabies has increased in Moscow.

Tap water should be avoided as it shows you can get a disease.

Having medications won’t be bad idea because it differs from the Russian medicines.

Climate:

Parts of Russia can have volcanic activity, such as Chechnya, the Kuril Islands and the Kamchatka Peninsula. Spring flooding and summer forest fires occur throughout Siberia and parts of western Russia.

Constraints:

Table of Contents

By: Mayank Bhasin

Page

Introduction: 1

Canadian Assistance Programs 2

Travelling Documentation: 2

Registering your business: 5

Royal Bank of Canada: 7

Business Development Bank of Canada: 8

Commercial Banks: 9

Licensing requirements and conditions 10

Russian Customs: 12

Taxes and Duties: 17

Auto Car Shippers: 21

Container shipping. 21

Labour 22

Additional Information: 23

WORKS CITED 25


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