Russia company registration


Russia company registration

Since 2003, Healy Consultants has assisted our Clients with starting their company in Russia. Our services include i) Russia business registration ii) assistance to license the company iii) corporate bank account opening services in Russia and abroad iv) employee recruitment v) visa strategies and vi) office rental solutions.

SummaryTax resident LLCFast SolutionPrivate JSCPublic JSCRepresentative OfficeBranch company
Also known as?oooготовая компаниязаоoаопредста
Best use of company?Trading CompanyTimely secure contractsRaise capitalRaise capitalPromotion, market researchTrading Company
Legally tax exempt if properly structured?NoNoNoNoNoNo
Corporate bank account location?SberbankAlpha BankCitibankStandard CharteredVTBGazPromBank
Client must travel to Russia?NoNoNoNoNoNo
Can secure trade finance?YesYesYesYesYesYes
Limited liability entity?YesYesYesYesNoNo
VAT payable on sales to local customersYesYesYesYesNoYes
Withholding tax on payments to overseas shareholders?YesYesYesYesYesYes
Average total engagement costs?US$15,460US$40,400US$16,660US$16,660US$18,760US$19,760
Average total engagement period?4 months2 weeks5 months5 months6 months6 months
Accounting and tax considerationsTax resident LLCFast SolutionPrivate JSCPublic JSCRepresentative OfficeBranch company
Statutory corporation tax payable?20%20%20%20%20%20%
Must file an annual Russia tax return?YesYesYesYesYesYes
Effective corporation tax rate on net profits of US$250,000?20%20%20%20%20%20%
Must file annual financial statements?YesYesYesYesYesYes
Investment income is legally tax exempt in Russia?NoNoNoNoNoNo
Access to double taxation treaties?YesYesYesYesYesYes
Monthly GST reporting to the Government?YesYesYesYesNoYes
Legally tax exempt entity?NoNoNoNoNoNo
Dividends received are legally tax exempt?NoNoNoNoNoNo
Company registrationTax resident LLCFast SolutionPrivate JSCPublic JSCRepresentative OfficeBranch company
Resident director\partner\manager required?YesYesYesYesYesYes
Minimum number of shareholders\partners?1111Parent companyParent company
Minimum number of directors/managers?111111
Minimum paid up share capital?US$130US$130US$130US$1,300US$0US$0
Shelf companies available?YesYesYesYesNoNo
Time to incorporate a new entity?6 weeks2 weeks7 weeks7 weeks8 weeks8 weeks
Can easily convert to a local PLC company?YesYesYesYesNoNo
Can have preference shareholders?YesYesYesYesNoNo
Business considerationsTax resident LLCFast SolutionPrivate JSCPublic JSCRepresentative OfficeBranch company
Can invoice local customers?YesYesYesYesNoYes
Can hire local staff?YesYesYesYesYesYes
Can rent local office space?YesYesYesYesYesYes
Secures a residence visa for business owner?YesYesYesYesYesYes
Good entity for trademark registration?YesYesYesYesYesYes
Other useful informationTax resident LLCFast SolutionPrivate JSCPublic JSCRepresentative OfficeBranch company

Russia has signed free trade agreements?Yes, see this page
This country is a member of WIPO and TRIPS?Yes
The country is a member of the ICSID?Yes
Average customs duties suffered?7.8%
Government foreign investment approval is required?No
Average monthly office rental? (US$ per sq m)US$50
Minimum statutory monthly salary?US$115
Average monthly US$ salary for local employees?US$565
Russia RUB deposit interest rate? (1 year average)7-9.70%
US$ deposit interest rate? (1 year average)1.40-1.70%
Overseas remittance currency controls?Yes
Public register of shareholders and directors?Yes
Banking considerations
Multi-currency bank accounts available?Yes
Corporate visa debit cards available?Yes
Quality of e-banking platform?Excellent
Crowd funding available in this country?Yes

Benefits and problems of registering a company in Russia

Press the link headings below to read detailed, relevant, up to date information.

  • Benefits and problems

    Benefits of Russia company registration

      Russia business registration facts

    1. Russia today has the seventh largest economy in the world with a GDP of US$2.422 trillion. All the wealth rests with Moscow, which has Russia’s highest GRP (Gross Regional Product) of US$339,647m – almost double that of the next region;
    2. The paid up share capital is 10,000 roubles (approximately US$130) for a limited liability company;
    3. Russia is rich in natural resources, the revenues and jobs from which give the country’s middle class spending power;
    4. Russia has a diverse range of business opportunities due to its rapidly-growing middle class population;
    5. Russia is accessible by land and sea, meaning that businesses can select the most cost effective mode of transportation;
    6. Russia has the 8th largest workforce in the world. The mean monthly wage in the country is US$800 per month, which is affordable compared to EU countries where wages normally exceed US$2,000;
    7. Compared to western countries, the cost of living in Russia outside of Moscow and St. Petersburg is very cheap when it comes to food, transport, utilities, rent, wages etc.

    Problems with Russia company registration

    1. Each Russian company must have a resident director. Only the resident director may be the bank signatory;
    2. Russia’s economy is extremely dependent on the price of oil and has suffered significantly due to OPEC’s recent action to lower the price of the world’s biggest commodity;
    3. Sanctions related to the Russian occupation of Crimea increase the compliance burden for western businesses when doing business with Russia;
    4. After company registration in Russia, quarterly financial statements must be submitted to local authorities;
    5. Russia’s government plays a big role in daily business. Therefore, there exist administrative and legal barriers to business registration in the country. To start a Russian company, you will need professional help to navigate the legal and governmental obstacles;
    6. Russia is not a member of the EU and therefore does not share the business benefits the EU has to offer;
    7. Russia is a vast landmass, which makes good transportation within the country expensive. Entrepreneurs must carefully anticipate transportation costs;
    8. Registering a company in Russia can become very complicated in some industries, as the Government restricts, and even prohibits, foreign investment in various industries including aerospace, natural gas, insurance, electric power, defence, natural resources, and large-scale construction;
    9. Russia’s corporate tax rate is relatively high at 20%.
  • Best uses for a Russia company

    Technology research firms find Russia attractive thanks to the high technical skills of the country’s workforce. In addition, the Russian government has tax incentives in place for science and technology-related activities, including accelerated amortization rates and greater deductibility of R&D expenses for tax purposes.

Frequently asked questions

Contact us

For additional information on our company registration services in Russia, please email us at Alternatively please contact our in-house country expert, Ms. Karen Lee, directly:
client relationship officer - Karen
cpa russia Russia government website Central Bank of Russian Federation Russia federal customs service world trade center moscow