LEASING is a type of investment activity when the leasing company purchases the equipment from the certain supplier on its own or borrowed funds and then rents it out to the client.

Kinds of leasing:

FINANCIAL LEASING – Purchase of the equipment at the supplier and its transmission on financial rent to the client.

REVERSIONARY LEASING – the mechanism of financing of the enterprises (alternative to classical crediting) at which instead of crediting on the security of material actives these actives are redeemed and surrender to the client back in financial rent

The basic non-tax advantages of leasing

• Object of leasing acts as a cardinal security under the project.

• Extra security is required only in the individual cases and in enough limited volumes.

• Leasing payments concern on the net cost price of production in total volume, and repayment of a duty under the credit (the sum exceeding of amortization) – from profit.

• Credit history

• Preconditions for the subsequent reception of investments

The basic tax advantages of leasing

• The opportunity of use of the accelerated amortization

• Economy under the profit tax

• Economy under the tax to property (in 3 times)

• Leasing payments concern on the net cost price of production in total

• The equipment can be on balance of the leasing company for the period of leasing and by that the structure of the client's balance will improve

Components of leasing payments

• Compensation of the equipment cost (repayment of a duty under the credit)

• Compensation of percents under the credit which the leasing company receives in bank for financing the project

• The commission of the leasing company

• Compensation of payments under the tax to property as a subject of leasing is on balance of the leasing company

• Compensation of insurance premiums on equipment assurance

• The VAT (Value Added Tax) for leasing payment

The list of the documents given for reception of leasing financing

The general documents
1. Requisites of the Enterprise .
2. The application for granting of property in leasing - is made in the form given by leasing company.
3. The brief resume of the Client, the information about Founders, history of the enterprise, consumers of its production/services, development of business of last year, plans on development of business for next years.
4. The brief feasibility report on the purpose of use of financing.

Legal documents
5. The certificate on the official registration (notarially certified copy)
6. The Charter with alterations (notarially certified copies)
7. Certificates on modification in the Charter (if those have been made) - (notarially certified copy)
8. The constituent contract with changes (notarially certified copy)
9. An extract from the register of shareholders (if other party - joint-stock company)
10. Protocol about appointment of the general director (another post of the chief – under the Charter ) – the copy certified by the organization.
11. The order about appointment of chief accountant – the copy certified by the organization

12. Copies of passports of the general director and the chief accountant
13. The order on since what date the general director has started execution of the duties - the

copy certified by the organization
14. The certificate about getting the tax registration (notarially certified copy)

Financial documents
15. Accounting balances and reports on profits and losses for the last year and for all the accounting periods of current year - the copy certified by the organization.
16. Tabulated reference from accounts department about left-hand overturns (by the month) for last 12 months in each serving bank and all sum.
17. Decoding of left-hand and creditor debts for 2 last accounting dates (the list of the largest debtors and creditors) with data on presence of the delayed debts.
18. Decoding of bank credits and loans for last accounting date (the list of short-term and long-term credits and loans) with specifying of the creditor, date of debts rising, date of scheduled repayment of debts, data on the delayed debts


Documents, in case of if the project assumes the mortgage of actives of the enterprise
19. The documents confirming the property right to property, offered in the mortgage.