Why Register a Company in Russia?
- Due to its rapidly growing middle-class population, Russia has been providing a diverse range of business opportunities to entrepreneurs and multinational companies
- Russia is the 7th largest economy in the world, with a GDP of US$2.422 trillion
- Due to having an abundant supply of natural resources, Russia is able to create revenue and employment for its growing population, and export goods and services amply
- Compared to the other western countries, the cost of living in Russia is cheaper when it comes to food, transport, utilities, rent, wages, etc.
- Russia is a member of the UN Security Council, G8 and G20, the Council of Europe and the Organization for Security and Cooperation in Europe and is the leading member of the Commonwealth of Independent States
- Businesses in Russia can select the most cost-effective mode of transportation as the country is accessible by land and sea
How to Register a Company in Russia?
Company registration in Russia can be done through the following steps:
1. Decide a Legal Structure
For business setup in Russia, one needs to first decide on the legal structure of the company. It can be a limited liability company, a partnership company, representative office, branch of a foreign company, or a joint stock company. After completing this step, one needs to complete the process of company name registration in the official portal of Russian authorities.
2. Notarize the Foundation Documents
The next step of company registration in Russia consists of preparing the documents of incorporation and notarizing the signature made in the registration application. This process takes around 1 week to complete. Here, one has to draft and notarize the foundation documents and then file them with the Trade Register. The cost to notarize all the documents is around 200 RUR per copy.
3. Join the Russian Company Register
Once the documents have been drawn up, an investor has to incorporate the business by sending the following documents to the registration office of the Federal Tax Service (FTS):
- Registration application form including notarized signatures (cost of R200)
- Copies of foundation documents
- Proof of legal status of the business founder(s)
- Receipt of state registration fee (which costs R4,000)
Once these documents have been sent to the officials, the FTS takes 5 business days to make a uniform decision and will either accept your business to the State Register or reject it if you have not followed the ground rules. If the business is accepted by the FTS, then they will also register your business for the tax purpose, after which you will receive the following documents within the next 7 days:
- Incorporation certificate (or Certificate of State Registration) for your business
- Tax certificate
- Tax Identification Number for the business
- Copy of your foundation documents with the mark of registering authority
- Extract from the Common State Register of Legal Entities
4. Open a Bank Account
Once you receive all the documents from FTS, the next step is to open a bank account for your Russian company. Following documents are required to open a business account in Russia:
- Incorporation certificate and tax certificate from the FTS
- Founding documents of your business
- Your Russian business license (if applicable for your business)
- Notarized signatures
- Documents confirming the identity and authority of the signatories of the account
5. Deposit a Capital in the Bank
Before company incorporation, a minimum of 50% of the charter capital needs to be deposited. The proof of the same must be obtained from the bank.
Once you are done with all these steps, you are free to completely start your company, where the hard work really begins. The whole process takes around 18-21 days to complete.
Documents Required for Company Registration in Russia
- Full name of the company (plus any abbreviation it will use in business transactions)
- Names and signatures of the company founders
- Amount and nature of shareholder contributions (in cash or kind)
- Rules for the running of the company
- Legal responsibilities
- Details of any directors, if applicable