ANNOUNCE

The complctian of their nu$s production fac iliO, inc orporating the Honeywell Bull Flcxible Production Line in 80,0(n sq. fi.of modcrnhiHing

Yereuan

With regional headquarters in MOSCOW KIEV LONDON

For Jurther dttuils contuo

K. MELIKIAN

Abelian 6/1

Yerevan 375078

ARMENIA

Tel: (8852) 350131

Fax: (8852) 3501 21 a law olTice in Yerevan. itself a joint venturc with the Ministry ol Justice. to assi st.

"The l'irst shock people get is to lind out that the Government wants to do busincss with you," he said.

Thc rcsponsibilities of some .ioint ventures can sccm odd to Westcrncrs, particularly I'rom the Unitcd State s. Yeghiayan rccalls one deal involving a garrnent l.actory which includcd a clinic and a schrxrl.

"The agreenrcnt was 50% of the wholc thing: it was rcally likc taking on a wholc villagc." he said.

C-'ertainly. vcnturcs must cover workers' social security. hcalth, and pension payments, which can adcl up lo 2OVct to wagc costs.

C)ther strange aspccts include a requirc ment lirr a reservc l'und equal to 25%, ol thc capital investcd. lo covcr a venture's ohligations if it goes hankrupt.

Thc grxxl news in all this is that venturcs gct a tax holiday 0n thcir l-irst tw<r ycirrs' prol'its befbrc a 3Oo/o ra.le kicks in.

Unhappily, Moscow authorities are also drawing up lists ol-acccptable profit margins in cach industry. Companies which rnake more than double lhose margins lircc taxcs ()l' up to 9Oo/o on 1hc cxcess.

[{ow long tlocs all this paperwork takc'] Anything lrom 60 days to lirrever, ac-