Reasons Why Russia Company Formation is a Great Financial Decision
Russia is one of the most powerful countries in Europe, and the rising GDP of this country has attracted many foreign investors to set up a company in Russia. The main reason for the growing economy of Russia is increasing the price of oil. According to a statistical report of the World Bank issued in the year 2017, EUR 25 billion was invested in Russia by foreigners. The attractive sectors of Russia are oil, gas, food, textile, energy production, timber, chemicals, farming, metals. Russia also produces hundreds of jobs every year, and it is mandatory for foreign employees to obtain a work permit to work with a Russian Company.
The Russia Company Formation Procedures
The foremost step involved in setting up a company in Russia is to prepare all the relevant documents and translate them into Russian language and notarize the same. Following are the list of steps of Russian company incorporation:
- Deposit the share capital in a local Russian bank and obtain the certificate of deposit for the same.
- Pay the business registration fee and receive a receipt for the same.
- To receive a unique tax identification number for Russia, you need to submit all the required documents at the unified register of the Federal Tax Service.
- Apply for state number which is necessary for the business registration process. This process takes around seven days.
- Notarise the bank signature card
- Apply/order for a company seal
It takes about 18-20 days to complete the business registration process.
Business Entities in Russia
The following is a list of business entities in Russia:
Limited Liability Company
This type of business entity is the most popular one in Russia. It requires a minimum of one shareholder and a maximum of 50 shareholders with a minimum capital investment of RUB 10.00. 50% of the capital investment can be made at the time of the business registration process and rest can be paid within three months of company incorporation.
Joint Stock Company
Joint stock companies in Russia operate either as closed joint stock or open joint stock company.
The open joint stock company are set up where shares can be freely transferred to the public, and the minimum amount of share capital required is RUB 100.00
The closed joint stock company are transferable between the shareholders of the company, and the minimum capital amount is RUB 10.00
This is the simplest way to set up a company in Russia. This is because there is no requirement of the minimum capital investment amount. The owner of the company is responsible for taking all the business decisions. In effect, they can use the profit generated through the business after paying income tax to the government.
A general partnership is set up when two individuals or corporate bodies come together to set up a company. They share equal liabilities and come together under the partnership agreement.
A limited partnership arises when one partner is fully liable for the company’s losses and profits. Meanwhile, the limited partner is liable only to the contribution to make.
Russia is a great place to start a business as a stable economy, and its location will help you much in expanding the business.
At 3E Accounting United Kingdom, we offer services to set up a company in Russia. You don’t need to worry about the Russian rules and regulations for business registration. We have all that covered. Contact us for more information.