Company Registration in Russia:
Company registration is the first step toward legalizing your entity in Russia. Incorporating your entity as a foreign investor or a local entrepreneur requires following specific rules. That’s what we are about to dig down and discover the legalities concerning company registration in Russia.
What is so good about Russia when it comes to business potential?
Russia has always remained a potential business hotspot for entrepreneurs globally. Expect the recent war with Ukraine, which has significantly dented its growth; the nation has rarely seen any dip in its economy. This success has been credited to fine-tuned FDI policies, robust financial structure, and simplified compliances, ensuring ease of doing business for local and foreign entrepreneurs. Given pointers reflect why Russia is worthy of being a top business destination:
- Ample resources
- Vast consumer base
- Strategic geographical footprint
- Skilled Workforce
Russia has an ample workforce qualified in several key areas, creating a vast pool of professionals for businesses from different domains.
- Nominal taxes and trade policies
The vast landscape of Russia is overloaded with an abundance of natural resources. It is still among the top nations globally regarding fuel production. Russia is rich in resources like oil, gas, minerals, and timber- paving endless opportunities for energy and extraction industries.
The consumer base in Russia stands at nearly 120 m, which is approximately 1.1% of the global population. This makes Russia a potential market for various products and services.
Russia resides between European and Asian countries, serving as a strategic trading hub for eastern and western countries
The corporate tax in Russia is as high as 20% and as low as 10% under specific conditions. The FDI norms are not as stringent as they were earlier. The business environment in Russia is now reinforcing global relationships, allowing more foreign businesses to get on board.
Business Structures for Company Registration in Russia
You can choose one of the following business structures from the following before you go for company registration in Russia.
- Limited liability company
- Joint-stock company
- General partnership
- Limited partnership
- Branches of foreign companies
A limited liability company is a popular business structure that is robust and sustainable. It does not accrue risk to the member’s asset since it adheres to the limited liability concept.
A joint-stock company falls in the same basket where a pubic limited company resides. It offers sustainable foreign ownership in a local company, allowing overseas investors to further their goals. It is an ideal structure for businesses with ample share capital and massive
Despite being a legitimate structure, a general partnership is not as sustainable and transparent as the limited partnership model. However, for general business purpose where liability and management size is not a concern, this structure won’t cut it.
Unlike General partnership, this legal structure is more robust and versatile. The perks of choosing this structure include limited liability, improved transparency, and amplified clarity among partners.
The branch office is an ideal setup for parent foreign companies seeking product promotion and market exploration. BO can perform many tasks but cannot make important decisions. And since it does not have an independent legal identity, the parent company has to address its liabilities.
Documents Required: Company Registration in Russia
- Charter documents
- Premise’ paperwork
- Passport of directors and founding members
- Photography of the authorized signatory
- Industry-specific approvals based on business type
Guide to secure Company Registration in Russia
The steps below will help to obtain company registration in Russia in a hassle-free manner:
- Step 1: Choose a Business Structure
- Step 2: Choose a Company Name
- Step 3: Appoint a Director and prepare documents
- Step 4: Open a Temporary Bank Account
- Step 5: Register with the Tax Authorities
- Step 6: Register with Social Funds and statistical authority
- Step 7: Get Business-specific Licenses and Permits (if applicable)
- Step 8: Register with the Employment Authorities
- Step 9: Officially Register the Company
Decide on which type of legal structure suits your requirements. Evaluate factors like compliance threshold, taxes, and paperwork for selecting a business structure. Choosing the wrong structure can attract a variety of problems, including stringent compliance, increased taxes, and compromised management control.
The step involves selecting a trademark-free name for your entity. You can perform the name search on the authority’s portal and opt for the legally fit name.
Appoint at least one director to handle business affairs. It is a mandatory requirement for most types of company structures. Once done, proceed with the paperwork arrangement. Typical documents required for company incorporation include AoA, premise paperwork, and founder’s ID proof. Ensure that all the required documents are notarized.
The next step is to open an account in a designated bank for business-related transactions. The account shall cease to exist until the member deposits mandatory share capital.
Head to the local tax authorities (Inspectorate of the Federal Tax Service) and secure a Taxpayer Identification Number (INN) for your entity and its employees.
Visit the Pension Fund and Social Insurance Fund to register your entity and ensure adherence to norms concerning social security contributions. Next, seek approval from the Federal State Statistics Service (Rosstat) to secure statistical codes for your business undertakings.
Obtain any business-specific licenses or approval from the different authorities for your business activities. The type of approval your business requires would depend on its nature and work area.
If you plan to get some employees on board to operate your business, approval from the employment authority falling under labor laws is mandatory.
Share incorporation documents and other critical paperwork with the Unified State Register of Legal Entities for registration purposes.
Compliances around Company Registration in Russia
- The limited company incorporation attracts a minimum capital of RUB 10,000. The shareholder number for legalizing such an entity is one. The maximum threshold can go up to any number.
- The corporate tax has been capped at 20%. A tax rate of 15% is also available, but only for specific scenarios.
- The tax rate on dividends is 15%, with no grounds for exemption
- The VAT rate for most products is kept at 20%. The concession of 5% is available for only notified products.
- Registered must conduct annual meetings and document the whole process.
Adviso: Set up your Venture in Russia with Ease
Adviso is a one-stop destination for seamless global compliance and regulatory affairs. We understand that dealing with ever-changing compliances can be daunting while going global. That’s where our unmatched expertise comes into play. Our professionals can overcome every roadblock and pitfall to hinder your global ambition. We maintain utmost transparency throughout the incorporation process and deliver astounding results, no matter the intricacy. Your journey to a successful business establishment commences here!
Still thinking, why choose us? Have a glance over what we can offer.
- Offers a broad portfolio of services, including global incorporation, dispute settlements and regulatory affairs.
- In hand experience in overcoming regulation barriers, ensuring seamless business establishment
- Proven track record concerning prompt delivery of services- sometime days before the deadline, ensuring 100% satisfaction.
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