On an average, if the application is flawless, the procedure from filing to granting lasts from 10 to 12 months. The issue of any office action extends the procedure for about 4 months.
Company Formation and Registration in Russia
Russia, officially known as the Russian Federation, is the largest country in the world. It is located in Eastern Europe and Northern Asia. Once the preeminent republic of the Union of Soviet Socialist Republics (USSR), Russia became an independent country after the dissolution of the Soviet Union in December 1991. Moscow and St. Petersburg are the two important cultural and financial centres in Russia and are amongst the most picturesque countries in the world. Russia has an upper-middle income mixed economy with enormous natural resources, particularly oil and natural gas. Oil, natural gas, metals, and timber account for more than 80% of the Russian export abroad. The country is one of the five recognized nuclear weapons states and possesses the largest stockpile of weapons of mass destruction.
Company Formation in Russia
For setting up a company in Russia, one can choose from among the following business entity types:
1. Joint Stock Company
It is a form of a company where two or more individuals own shares of stock in the business. An open JSC can trade its share publicly without the permission of other shareholders. They are two types of Joint Stock Company in Russia, open and close. The statutory minimum capital here is 100,000 Russian roubles. Whereas for a closed JSC the minimum share capital required is 10,000 Russian roubles. According to the government rules, a Joint Stock Company must have at least 1 resident director and 1 shareholder who can be of any nationality to register the company in Russia.
2. Limited Liability Company (OOO)
Limited liability company, or triple ‘O’ in Russian, is the most common business structure in Russia. It is easy to set up, easy to manage and absolutely safe. The minimum contribution required under this is 10,000 roubles. Under the Limited Liability Company, all the shareholders are subject to limited liability and therefore have no personal liability. A Limited company in Russia is the most advantageous business structure for foreign investors intending to set up privately-owned businesses.
3. Representative Office
A foreign company can set up a representative office in Russia if it intends to use the location just for market research, as Russia does not allow making direct sales from the country if the company is a representative office. Representative offices are best suited for non-transactional operations, and, most importantly, they are the least regulated and exempt from income tax. Russia can be the best place to set up a representative office if you are selling your product from abroad but need a fixed place for representative purposes.
4. Branch Office
A branch in Russia can be completely owned by the foreign entity. A branch office must first obtain accreditation to operate from Russia. The main advantage of setting up a branch is that you can avoid double taxation because a branch is not a separate entity, so you do not need to distribute profit. But it is also important to note that a branch is treated as a permanent establishment for tax purposes, so one will have to pay income tax on its earnings and profits in Russia.
Benefits of Company Incorporation in Russia
A business in Russia enjoys the following advantages:
- Unlimited supply for natural resources makes Russia one of the sought-after locations to start a business
- A highly skilled and educated national workforce
- Access to one of the biggest markets in the world
- Russia has a strategic location as it shares its borders with many countries, which proves to be an advantage for dealing across borders
- Russia has initiated new investment programs and is encouraging foreign investment, which could prove beneficial for businesses looking to find funds and continue the expansion process
- Though Russia’s size can make logistics and supply chains a challenge, recent developments in transport links and infrastructure have greatly improved the logistical efficiency of doing business in Russia
Who We Are
Business Setup Worldwide will help you to open a company in Russia. We are a team of dedicated professionals possessing expertise across a range of business needs. We abide by strong ethics, thereby adding value to our client business. Our services include company incorporation, company registration, accounting and bookkeeping services, tax services, IP services and company secretarial services. Our approach to Russia company formation is centered on your business vision and objectives. We are there to solve your business challenges in Russia.
Business Setup Worldwide has a set of talented professionals who can guide you through the starting a company in Russia, company registration process and consulting services. Our advisors take care of the entire Banking, Visa, Legal, and Licensing formalities, in accordance with the Russian laws. For more information about the doing business in Russia, you may contact us for company formation in Russia.
How do I set up a business in Russia?
To set up a business in Russia, one should follow these rules
Determine the amount of Registered Capital
Drafting of the LLC Charter
Hold a General Meeting
Obtain Notary Translations of Documents
Legalization or Apostille of the Necessary Documents
Submit the Registration Form and Documents
Which business is profitable in Russia?
The following are the profitable businesses in Russia,
Fish & Seafood
Metal & Manufacture
Does Russia have a limited liability company?
Yes, Russia has a limited liability company.
Who issues a license in Russia?
The Department of the Treasury's Office of Foreign Assets Control (OFAC) is issuing a Russia-related General License.