Russia Company Formation

Russia company formation 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 Russia company formation should prepare for lengthy documentation procedures. The following information will help you determine whether Russia company formation is the optimum corporate structure to fulfill your business objectives:
Advantages of Russia company formation
1.	Between 1998 and 2006, Russian gross domestic product (GDP) expanded by an estimated 57.6%, creating major opportunities for local businesses. 2007 GDP is expected to grow by 6% from 2006. Russia is therefore an attractive market for international entrepreneurs. Furthermore, 100% foreign ownership is permitted with Russia company formation. However, Central Bank approval is required for companies with more than 50% foreign ownership.
2.	According to economic forecasts, the middle class will constitute 50-55% of the population by 2010, creating a large potential market for entrepreneurs who choose Russia company formation.
3.	It is easy 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.
Disadvantages of Russia company formation
1.	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 2007 survey, Russia is the world's 90th easiest place to do business. The survey measures factors including business start up procedures, time, cost and minimum capital required to start a business.
2.	Russia is negatively ranked as the 143rd least corrupt country in the 2007 Corruption Perceptions Index by Transparency International, a global measure of corruption amongst public officials and politicians.
3.	Corporation tax is levied at a rate of 32%. In addition, Federal and Municipal taxes, which vary according to the levels of capitalisation, are levied. Russia is negatively ranked as the world's 134th freest economy in the Heritage Foundation's 2007 Index of Economic Freedom, a measure of freedom enjoyed in business, trade, monetary, financial, investment and labour markets.
4.	Following Russia company formation, monthly financial statements must be submitted to local authorities.
5.	A company is required to rent a physical office premise prior to Russia company formation. A registered office address will not suffice.
6.	Russia restricts foreign investment in various lucrative industries including aerospace, natural gas, insurance, electric power, defense, natural resources and large-scale construction projects.
Other Information
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Contact Us
For more information on Russia company formation, email email@healyconsultants.com or call us in Singapore at (+65) 6735 0120.
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