VALUATION Corp. provides independent appraisal of nonmonetary assets, contributed to company's charter fund in Moscow and other Russian regions
According to the current Russian legislation, independent appraisal of any nonmonetary asset, contributed to the charter fund (shareholders' capital) of a newly established or already existing legal entity, is obligatory. For limited liability companies, this requirement is stipulated by the Federal Law “On Limited Liability Companies”, Art. 15 “Contributions to the Charter Fund of the Company”:
“If the nominal value (increase in the nominal value) of a member’s interest in the charter fund of the company, paid in the form of a non-monetary contribution, exceeds two hundred minimum wages established by the Federal Law as of the filing date of the documents for public registration of the company or relevant changes in the company’s charter, this contribution must be evaluated by an independent appraiser. The nominal value (increase in the nominal value) of a member’s interest paid in the form of such non-monetary contribution may not exceed the value of the said contribution determined by an independent appraiser”.
A similar requirement is stipulated by the Federal Law “On Joint-Stock Companies”, Art. 34 “Payment for Shares and Other Securities of the Company”:
“In the event of a non-monetary payment for the shares, an independent appraiser must be engaged to value the market value of assets given as payment. The monetary value of the assets accepted by the company founders and by the Board of Directors (Supervisory Board) of the company may not exceed the value determined by an independent appraiser”.
The importance of an appropriate appraisal of nonmonetary assets contributed to the company’s charter fund is explained by the fact that the reported value of company's fixed assets will serve as the basis of property tax assessment and calculation of amortization charges. Thus, the nonmonetary assets appraisal will directly affect the financial performance of the company.
For further details concerning our professional services in valuation of nonmonetary conributions to a Russian company's charter fund, please contact us.
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