Russia company registration is a legal way for foreign entrepreneurs to conduct business in Russia. The country's economy is rapidly expanding, despite the presence of heavy government control. Russia company formation is also time consuming, requiring in-depth knowledge of local regulations, which frequently change. Thus, clients choosing to start a business in Russia should prepare for lengthy documentation procedures. The following information will help you determine whether company formation in Russia is the optimum corporate structure to fulfill your business objectives:
Between 1998 and 2006, Russian gross domestic product (GDP) expanded by an estimated 57.6%, creating major opportunities for local Russian businesses. However the Russian economy was one of the hardest hit by the 2008-09 global economic crisis, with GDP shrinking by almost 8%. Despite the 2009 decline, Russia can be an attractive market for international entrepreneurs. 100% foreign ownership is permitted with Russia company formation. However, Central Bank approval is required for companies with more than 50% foreign ownership.
According to economic forecasts, Since the start of 2010 the middle class constitutes over 50% of the population which has created a relatively large market for entrepreneurs who choose Russia company registration.
The minimum authorised share capital required for Russia company registration is relatively low at 10,000 Rubles (approximately US$320) for a limited liability company (LLC). Half of the share capital must be paid up prior to registration of the Russian company.
Forbes Tax Misery Index 2009 rated Russia as having the 10th lowest tax misery in the world. The index takes into account corporate income, employer social security, personal income, employee social security, wealth tax and VAT/sales. Forbes suggests the index can be used as a proxy to evaluate whether a country’s policy attracts or repels capital and talent.
It is relatively simple to open global corporate bank accounts to support Russia company formation. Healy Consultants works with internationally recognised banks such as HSBC, Standard Chartered and Citibank to provide corporate bank account services.
Russia company formation takes up to eight weeks to complete due to certain levels of bureaucracy in the country. According to the World Bank's Doing Business 2012 survey, Russia is the world's 112th easiest place to do business. The survey measures factors including business start up procedures, time, cost and minimum capital required to register a company in Russia. Additionally the World Economic Forum ranks Russia 67th in its Global Competitiveness Report 2012-2013.
Following Russia company formation, monthly financial statements must be submitted to local authorities.
Russia restricts foreign investment in various lucrative industries including aerospace, natural gas, insurance, electric power, defense, natural resources and large-scale construction projects.
A company is required to rent a physical office premise prior to Russia company formation. A registered office address will not suffice.
Russia is negatively ranked as the world's 139th freest economy in the Heritage Foundation's 2013 Index of Economic Freedom, a measure of freedom enjoyed in business, trade, monetary, financial, investment and labour markets.
Russia is negatively ranked as the 133rd least corrupt country in the 2012 Corruption Perceptions Index by Transparency International, a global measure of corruption amongst public officials and politicians. Corporation tax is levied at a rate of 20%. In addition, Federal and Municipal taxes, which vary according to the levels of capitalisation, are levied.
Government agencies play an important role in doing business in Russia, like all countries. All businesses deal with government agencies on a regular basis, and foreigners setting up a business in Russia should exercise restraint and be patient as much as possible as authorities will always have the final say in any matter.
As not all local Russian companies are well-versed with international trade, we encourage our Clients to consistently use and sign contracts of service with suppliers and counter parties.
Your joint venture partner or Russia shareholder must not merely be a nominee for the sake of meeting the rules of foreign company incorporation in Russia. You should choose a partner that actually brings a lot to the table, including knowledge which would help your company succeed in Russia.
When you’re starting a new business in Russia it’s important to find out which registration process and licenses apply to your Firm. This can be complex area, as different branches of the government will handle Russia company registration and licensing for various aspects of your business.
Healy Consultants offers a range of Russia business startup services to support Russia company formation including accounting and taxation, IT support and obtaining corporate finance.
Most clients require a Russia virtual office for invoicing purposes, and Healy Consultants offers a range of tailored packages.
Grants and other funding programs are available from the the Russian federal and state governments. There are grants and other assistance available in many categories, including developing your business, innovation and exporting. Healy Consultants assists our Clients locate the grants and assistance programs most relevant to your company and doing business in Russia.
Entrepreneurs completing business formation in Russia can benefit from Russia's Intellectual Property laws. Healy Consultants will assist our Clients with trademark and patent registration. Registering your brand, trademark and designs is particularly important in Russia.
Healy Consultants offers a comprehensive range of research services to support company registration in Russia. These include i) industrial or business analysis ii) economic and political overview iii) competitor analysis iv) customer analysis v) regulation analysis vi) market entry strategies vii) business partner matching.
Russia is the largest country on Earth, bordering Scandinavia in the west and Northeast Asia in the east. At over 17 million square kilometers, it covers one-eighth of the Earth’s inhabited land area.
Russia’s military is among the strongest in the world. It has over a million troops in active duty, the largest stockpile of nuclear weapons, the largest tank force, the second largest fleet of ballistic missile submarines, and is the only country apart from the U.S. to maintain a strategic bomber force. Russia is also the world’s top arms supplier, accounting for over 30% of worldwide weapons sales.
Moscow’s Metro system is one of the most unique subway systems in the world. Its stations range in design from grand baroque marble and granite structures built by Stalin to modern iron and glass. There are also special trains dedicated to exhibiting art, literature and history.
Russia is known as the “lungs of Europe” since it has the largest forest reserves in the world, and the amount of carbon dioxide it absorbs is second only to the rainforests in the Amazon. Russia’s lakes, on the other hand, contain around 1/4th of the world’s liquid fresh water.
Moscow has more billionaires than any other city in the world. With 74, it has 3 more billionaires than New York City.
The Soviet space program is responsible for a number of firsts in space exploration and flight. It launched the first intercontinental ballistic missile and put the first satellite (Sputnik), animal (the dog Laika) and human (Yuri Gagarin) into space. The first woman in space was also Russian, as was the first man to do a spacewalk. They were also responsible for the first space station, space rover, interplanetary probe, and the first impact on the moon.
Roughly 80 percent of Russia's population is ethnic Russian. The remaining 20 percent is made up of a wide variety of ethnic groups including Tatar, Ukrainian, Belarussian, Moldavian, Kazakh and many others.
Russia adopted equal rights before the U.S. – in 1918, Russian women were granted suffrage, 2 years earlier than their American counterparts. The case is the same for slavery – Tsar Alexander II freed serfs in 1861, 4 years before the 13th Amendment.
FEES SCHEDULE
Year 1 incorporation
US$3,150 *
Annual fees from Year 2
US$1,500 *
Nominee shareholder / director fee
US$1,800 **
Company de-registration
US$1,450
* Includes government licence fees, Ministry of Finance approval and legal registered office for 12 months.
** Excludes US$1,100 refundable deposit.
FEES SCHEDULE