Abolition — repeal or cancellation of a law, decision, or agreement. The term “abolition” may also be used to mean resignation from office.
Advance (Advance Payment) — an asset (most often a sum of money) paid in advance as a prepayment to guarantee fulfillment of an obligation to another person.
Affidavit — a written statement made under oath. An affidavit may contain any information whose truthfulness is confirmed by the affiant (the person making the statement). Affidavits are most commonly used in common law countries (the USA, the UK).
Allonge — an additional sheet of paper attached to a bill of exchange on which endorsements are made if there is insufficient space on the reverse side of the bill.
Apatrid (Stateless Person) — a person who, unlike a bipatrid, has no citizenship or nationality (in monarchies) and is not recognized as a citizen or national by any existing state.
Apostille — a special certification stamp used as a method of official legalization of documents, granting them legal force in all countries recognizing this form of legalization. Apostilles are recognized in all countries party to the 1961 Hague Convention, eliminating the need for diplomatic or consular legalization.
Assignor (Cedent) — the party in a cession; the creditor who transfers an existing debt (claim) to another party.
Assignee (Cessionary) — the party in a cession; the person to whom the creditor transfers the right to claim against the debtor.
Audit — a form of financial control over an organization’s activities through the examination of accounting records and financial statements. An audit may be mandatory or voluntary.
Audit Commission — an elected supervisory body of a joint-stock company responsible for checking the results of the company’s financial and business activities.
Authorized Capital (Share Capital) — the initial capital of an enterprise, representing the aggregate funds (shares, contributions) of the founders (participants) of the company to ensure its operations.
Aval — a guarantee on a bill of exchange or a check given in respect of any person other than the payer. An aval is usually indicated on the reverse side of the bill/check or on an allonge.
Banking Syndicate (Consortium) — a group of banks organized by a lead bank for the purpose of jointly carrying out large credit operations. Such syndicates are usually formed to conduct transactions that a single bank cannot perform on its own.
Barter — exchange of goods, works, services, or results of intellectual activity of equivalent value.
Bearer Security — a security that does not record the owner’s name and is transferred simply by delivery.
Beneficial Owner — an individual or several individuals who directly or indirectly own a legal entity (company) or exercise significant influence over decision-making.
Beneficiary — a person who receives benefits under a contract or on another lawful basis.
Bipatrid — a person who holds two or more citizenships or nationalities.
Broker — an individual or legal entity acting as an intermediary between a buyer and a seller on stock, currency, or commodity exchanges.
Cession — the transfer of a claim whereby the current creditor (assignor) transfers the right to claim against the debtor to a new creditor (assignee).
Charter (Articles of Association) — the foundational document of a legal entity, defining its legal status, organizational form, type of activity, objectives and tasks, structure, rights, and duties of its members.
Cheque — a security containing an order from the drawer to a bank to pay a specified sum to the payee.
Chicane — abuse of rights.
Clearing — a system of cashless settlements between countries, companies, enterprises, and banks based on the offsetting of mutual claims and obligations.
Collection (Incasso) — an intermediary banking operation under which the issuing bank, on behalf and at the expense of a client, undertakes actions to collect payment from the payer. Collection settlements are carried out on the basis of payment demands or collection orders.
Commercial Designation — a means of individualizing an enterprise as a property complex; it is not subject to registration and does not necessarily have to be included in a company’s constituent documents.
Consolidated Financial Statements — financial statements of a group of related organizations treated as a single entity (including a parent company and its subsidiaries). Such statements present information on the results of operations and financial position of each company within the group, allowing, for example, the profits of one subsidiary to offset the losses of another, or the financial instability of one company to be compensated by the stability of another. Consolidated financial statements have a strong analytical focus.
Credit Leverage — borrowing of funds by a broker for the purpose of trading in financial markets.
Deferred Tax — a temporary difference between an economic event and its taxation, arising from differences between taxable income and accounting profit.
Denaturalization — revocation of a decision on naturalization, i.e. withdrawal of citizenship granted to a foreign national or a stateless person.
Deportation — forced expulsion of a foreign citizen or national from a country due to serious misconduct, violation of local laws, or failure to comply with lawful requirements of the authorities.
Deposit (Earnest Money) — a sum of money paid by one contracting party toward payments due under the contract to the other party. A deposit is one of the methods used to secure performance of obligations.
Derivative Financial Instrument (DFI) — a contract based on the future value of an underlying asset (any good or service), usually intended to profit from changes in the asset’s price. DFIs are also referred to as derivatives.
Derivatives (Derivative Financial Instruments) — contracts under which the parties undertake to perform certain actions (buy or sell) with an underlying asset at a price agreed in advance.
Devaluation — a decrease in the official exchange rate of a currency; withdrawal of devalued currency from circulation.
Dividends — a portion of a company’s profit distributed among its shareholders in proportion to their shareholdings. The right to receive dividends is a key property right of shareholders.
Document Legalization — the process of granting legal force to a foreign document.
Double Entry Accounting — an accounting method in which each business transaction is recorded in two accounts by the same amount: debit and credit.
Double Taxation — a situation arising from the application of different tax systems by countries, whereby the same taxable object is taxed in two countries at the same time.
Economic Substance — a set of conditions characterizing the reality of a company in its country of registration, usually evidenced by the presence of an office, employees, and a place of actual business activity.
Endorsement — a transfer inscription placed on certain types of securities (most often on a bill of exchange), by which all rights under the security are transferred to the specified person.
Escrow Account — a special account where funds are transferred from one party to another only upon the occurrence of specified conditions. The escrow account ensures the safe execution of contractual obligations.
Eurasian Patent — a unified patent granted by the Eurasian Patent Organization that provides legal protection for inventions in all member states of the Eurasian Patent Convention (Russia, Armenia, Belarus, Kazakhstan, Tajikistan, and others).
European Bank for Reconstruction and Development (EBRD) — an international financial organization that provides support for the development of entrepreneurial and business activities.
European Monetary System — a monetary mechanism established within the European Union to ensure currency stability.
Expatriation — the loss of citizenship by a person, often associated with temporary or permanent removal from the country of nationality.
External Audit — an audit conducted by an independent auditing firm (or an individual auditor) to provide an objective assessment of the accuracy of accounting records and financial statements, and to identify and correct errors.
Extortionate Transaction (Unconscionable Deal) — a transaction that is clearly disadvantageous to one of the parties, infringes upon its rights and interests, and is imposed under circumstances excluding free expression of will.
Filiation — a method of acquiring citizenship, which allows a child to obtain citizenship based on parentage, meaning the child will have the same citizenship as their parents regardless of birthplace.
Forfaiting — a type of trade finance transaction in which the rights to payment under a debtor’s (buyer’s) obligations are transferred from the seller to the forfaiter.
Forward Contract — a derivative financial instrument; a term contract for the future sale or purchase of a specified asset. The terms are fixed at the time of agreement. Forwards are usually over-the-counter products involving an actual underlying asset.
Fraudulent Bankruptcy — a public and deliberately false declaration by a debtor of inability to pay debts voluntarily, despite having sufficient funds to settle them.
Futures Contract — a type of forward contract; a term contract used by parties to agree on the terms of a future transaction. Unlike forwards, futures are standardized and traded on exchanges.
General Meeting of Shareholders — the highest governing body of a joint-stock company. The company is required to hold general meetings of shareholders annually.
General Partner — a partner in a partnership who bears unlimited liability for all obligations of the partnership.
General Power of Attorney — a legal authorization document used to transfer broad rights and full authority from one person to another.
Good Standing Certificate — a certificate confirming a company’s activity and the absence of outstanding liabilities.
Government Contract — an agreement for the supply of goods for public needs, under which the supplier (contractor) undertakes to deliver goods to a government customer or another person designated by it, and the customer undertakes to ensure payment for the delivered goods.
Government Fee (State Duty) — a monetary payment established by the state and charged for the performance of legally significant actions.
Hedge Fund — a private investment fund pooling investors’ assets, managed by professionals for the benefit of investors, often aimed at protecting or insuring against financial risks.
Hedging — a method of risk management using a specific set of financial instruments to minimize potential losses in unfavorable market conditions.
Immigration Quota — the maximum number of immigrants allowed to enter a country, as established by law or other regulatory act.
Incumbency Certificate — a certificate confirming the current status of a company and providing detailed information about its structure.
Industrial Design — an artistic and design solution of a product that defines its appearance (external look).
Internal Audit — an audit conducted by specially appointed employees of a company to assess the accuracy of accounting records and financial statements, and to identify and correct errors.
International Bank for Reconstruction and Development (IBRD) — a specialized United Nations institution and intergovernmental investment body, primarily aimed at assisting in the reconstruction and development of member countries’ economies.
International Customary Law — a rule of conduct established in international practice through repeated and long-term application.
Investment Fund — an institution that carries out collective investments by pooling savings of individuals and legal entities.
Invention — a technical solution in any field relating to a product (including a device, substance, microorganism strain, or plant or animal cell culture) or a method (a process of performing actions on a material object using material means), including the use of a product or method for a specific purpose.
Invention Claim (Patent Formula) — a concise statement of the essence and main features of an invention. The invention claim is the most important part of a patent application.
Issuance Profit — profits of banks and financial companies from issuing securities as intermediaries between issuers and buyers.
Issuer — a legal entity or government body authorized to issue (put into circulation) securities.
Law Chosen by the Parties (lex voluntatis) — a conflict-of-laws connecting factor in private international law, meaning the application of the law chosen by the parties to a civil legal relationship.
Law of the Closest Connection (proper law) — a conflict-of-laws connecting factor in private international law, meaning the application of the law of the state with which the legal relationship is most closely connected.
Law of the Court (lex fori) — a conflict-of-laws connecting factor in private international law, meaning the application of the law of the state where the dispute is being considered (by a court, arbitration, or another authority).
Law of the Location of Property (lex rei sitae) — a conflict-of-laws connecting factor in private international law, meaning the application of the law of the state where the property is located.
Law of the Place of the Act (lex loci actus) — a conflict-of-laws connecting factor in private international law, meaning the application of the law of the state where the civil act was performed.
Law of the Place of Contract Conclusion (lex loci contractus) — a conflict-of-laws connecting factor in private international law, meaning the application of the law of the state where the contract was concluded.
Law of the Place of Contract Performance (lex loci solutionis) — a conflict-of-laws connecting factor in private international law, meaning the application of the law of the state where the obligation arising from the contract is to be performed.
Law of the Place Where Damage Occurred (lex loci delicti commissi) — a conflict-of-laws connecting factor in private international law, meaning the application of the law of the state where the damage was caused.
Law of the Seller’s Country (lex venditoris) — a conflict-of-laws connecting factor in private international law, meaning the application of the law of the state to which the seller belongs, usually the seller’s place of residence or principal place of business.
Limited Partnership — a legal form of company in many countries, characterized by having partners with limited liability (similar to limited partners in Russia), who are responsible for company obligations only up to the amount of their contribution.
Liquidation Balance Sheet — a special accounting balance sheet of an organization prepared by the liquidation commission, reflecting the property and financial position of the company being liquidated.
Liquidation Commission — a temporary body of a legal entity established for the purpose of carrying out its liquidation.
Listing — the inclusion of a company’s shares in the list of securities quoted on a stock exchange, allowing only those shares that have passed expert review to be admitted to exchange trading.
Memorandum (as part of a Company Charter) — a document prepared in the legally required form, confirming the founders’ intention to create a company and become its members, and defining the company’s objectives, principles, and operating conditions.
Mortification — the restoration of rights to lost bearer securities by recognizing them as destroyed through a summons-based legal procedure.
Multicurrency Clause — a type of standard currency clause that adjusts the total payment amount in case of changes in the arithmetic average exchange rate of hard currencies relative to the payment currency.
Nationality (Subjectship) — a type of citizenship in countries with a monarchical form of government (e.g., United Kingdom, Spain, Belgium).
Naturalization — the process of acquiring citizenship of a country based on the voluntary desire of the applicant. Naturalization usually involves a qualifying period (minimum required residence in the country before applying for citizenship) and passing an exam on the history and language of the desired country.
Nominee Service — a general term for services provided by nominee shareholders and directors to ensure the confidentiality of the company’s real owner.
Non-Acceptance Payment — payments that do not require the consent (acceptance) of the payer.
Non-Disclosure Agreement (NDA) — a document ensuring the confidentiality of information with commercial value that is unknown to third parties.
Nostrification — the procedure of recognizing educational documents issued by a foreign state.
Nullification — the act of depriving a security, document, or currency of legal force. Through nullification, securities, documents, or currency are declared invalid.
Offer — a proposal to enter into a contract containing essential terms, presented orally or in writing, and addressed either to a specific person(s) or to an unspecified group of persons (public offer).
Option —
- a preliminary condition in a contract for publishing works by authors from one country in another: the publisher undertakes to examine the work and respond regarding the possibility of its publication within a set timeframe;
- a contractually established right for one party to choose the method or extent of performance of obligations under a contract or to decline performance under certain circumstances;
- the right to buy/sell (call/put) a basic futures contract (contract for the purchase or sale of an underlying asset) in the future at a predetermined price. In this context, an option allows fixing the sale price despite fluctuations in the futures price.
Option for Citizenship (Optation) — the choice of citizenship by a person holding dual citizenship or residing in a territory that has changed its national affiliation. Optation is one of the methods of acquiring citizenship.
Order Security — a security specifying the owner and granting them the right to exercise rights under the security or transfer it to another party.
Overdraft — a form of short-term credit that allows withdrawing more money from a bank account than is available at the moment of payment. An overdraft may be used by a borrower who has a temporary need for funds.
Parent Company — a company that, either by virtue of majority ownership in the share capital of another company (subsidiary), by agreement with it, or otherwise, has the ability to determine the decisions made by that subsidiary.
Partnership — a system of relationships between partners for carrying out business activities, in which they jointly manage production and property, share profits, and bear either unlimited or limited liability according to their participation shares.
Patent — a legal document granting exclusive rights, authorship, and priority concerning objects of intellectual activity such as inventions, utility models, industrial designs, and others.
Payment Order — a form of cashless settlement in which the account holder instructs their bank to transfer a specific sum to the account of a recipient, held in the same or another bank.
Penalty (Liquidated Damages) — an amount established by law that a debtor must pay to a creditor in case of improper fulfillment of obligations.
Registered Address — the address of a company as indicated in its registration documents. The registered address does not necessarily coincide with the address of actual business operations.
Registered Security (Registered Bond/Stock) — a security containing the owner’s name and recorded in the relevant register.
Rehabilitation (Sanation) — a set of measures aimed at improving a company’s financial position to prevent bankruptcy.
Reintegration — the reunification of states that had previously separated (e.g., a federation that split into separate states and later rejoined) or the reintegration of a part of a state with the main part from which it had separated.
Remittance — a method of debt repayment using a payment document (remittance), where the payment is made in foreign currency. The debtor purchases foreign currency on the national currency market and transfers it to the creditor.
Reorganization of a Legal Entity — the termination of an organization without ending its rights and obligations, which are transferred to new legal entities, occurring through merger, accession, division, separation, or transformation.
Repatriation — the return of people who emigrated to other countries to their homeland with restoration of their rights as citizens. Repatriation can also apply to sailors and prisoners of war returning home.
Resident — a legal or natural person registered in a particular country and fully subject to its national legislation.
Revaluation — an increase in the value of the national currency relative to foreign currencies.
Revocation — the cancellation of a previously issued instruction; for example, a drawer’s statement canceling a previously issued cheque.
Royalty — a type of periodic compensation paid to a rights holder for the right to use a specific intellectual property; also the income of a franchisee.
Settlement Payment (Compensation) — a sum of money or other asset given by one party to another in exchange for the fulfillment of an obligation. It is one of the methods of terminating obligations.
Shelf Company — a pre-registered company that remains inactive from the time of its incorporation.
Sole Executive Body (Corporate Law) — an individual acting on behalf of a legal entity and independently managing its day-to-day operations. Most commonly, this role is performed by a Chief Executive Officer (CEO) or Managing Director.
Spin-Off Balance Sheet — a document prepared during the reorganization of a legal entity through division or separation, in which the rights and obligations of the reorganized entity are transferred to new legal entities.
State of Registration — the state in whose official register a company, vessel, or space object is recorded.
Strike-Off — a simplified method of closing a company in some jurisdictions by removing it from the company register. Compared to liquidation, the strike-off process is simpler and faster.
Subsidiary Liability — additional liability relative to that of the principal offender; the right to claim an unpaid debt from another person if the main responsible party cannot settle it.
Syndicate — an association of individuals or organizations conducting joint activities in common interests and goals, while retaining production and legal independence.
Tax Deduction — an amount that, under certain conditions, reduces the income subject to tax, thereby decreasing the amount of tax payable.
Tax Haven — usually a small state or territory that attracts foreign capital by offering extremely favorable tax and other incentives.
Tax Holidays — the opportunity to be exempt from paying taxes for a certain period. For example, Costa Rica offers tax holidays for newly established businesses.
Taxable Object — an item or right that gives rise to a tax obligation and whose characteristics determine the amount of tax payable. This may include specific types of property, profit, provision of services, etc.
Trade Name (Corporate Name) — a means of individualizing a business, representing its official name. The trade name is reflected in the company’s founding documents.
Trust — a special structure that is not a separate legal entity, the essence of which is the management of a settlor’s property by one or more trustees for the benefit of other persons — beneficiaries.
Trust Agreement — a legal form for establishing a trust, governing the relationships regarding the transfer of property into the trust and the management of that property for the beneficiary’s interest.
Unit Investment Fund (UIF) — a form of collective investment managed by a specialized financial organization (management company) for the purpose of pooling funds into various financial instruments (real estate, securities, etc.).
Utility Model — an innovative technical solution in any field related to a device. A utility model shares features with an invention but lacks inventive step, making patentability requirements less strict than for inventions.
Venture Capital (Venture Investments) — a type of investment involving funding of newly established businesses or growing companies whose activities are associated with a high or relatively high level of risk. Veto — an act that suspends or prevents a decision of certain authorities from entering into force.
